Category Archives: Economic Inequality

The Debate Around the Legality of Fees During the Rental Application Process

affordable housing, Disparate Impact, Economic Inequality, housing crisis, housing inequality, rental housing market, renters

A consideration of the issue and the resources available for renters

Illustration by Natalie Williams/VTDigger

You may have seen this recent VTDigger article, which highlights the illegal practice of collecting rental application fees and the uncertainty created by vague wording in Vermont law around what constitutes an “application fee.” Under Vermont state law, rental application fees are clearly illegal. But are other fees related to the rental application process illegal too? According to Vermont Legal Aid, the answer is clearly yes; according to the Vermont Landlord Association, the answer is clearly no.

This blog post is intended to clarify some of the context around the issue and provide resources for renters who are trying to secure housing in this uncertain environment.

The Definitive Guide to Renting in Vermont, published in 2015 by CVOEO’s Vermont Tenants Program in collaboration with the Vermont Landlord Association, states that application fees are not legal, but that “charging potential renters for the actual cost of background and credit checks is permitted.”

This is a stance Vermont Tenants has maintained since the guide was written. Vermont Tenants cannot present a stronger position on the debate until a legal precedent is set. As a service and education organization (rather than a legal one), we don’t have the tools or the credentials to interpret the legislative intent of the statute – that is for the lawyers.

Meanwhile, even with the interpretation that the actual cost of credit and background check fees are permitted, it is likely that fees are collected for credit and background checks that don’t happen. In this rental housing market with the lowest vacancy rate we’ve seen in many years and a high number of applicants for every available apartment, if a landlord is charging all applicants the credit and background check fees, it is highly unlikely that all of these checks are actually being run. And if landlords are running the checks for all applications submitted, this practice is wasteful and impractical in a market where hundreds of applications are submitted for any single unit.

In the meantime, it is the lowest-income Vermonters who are most negatively impacted

Unfortunately, in this confusion, the people most impacted are the lowest-income Vermonters. A competitive rental market means that even slight disadvantages can pose real barriers to renting for those pinched hardest by the housing crisis, and discrimination is harder to prove. Leaving the decision up to the renter on whether or not they choose to speak up about their rights and refuse to pay a rental application fee or file a complaint will negatively impact the people already most vulnerable in their housing search. As VTDigger reports, the charging of any kind of fee to apply for housing will continue to prevent many people from submitting enough applications to actually get access to the housing they need. This is a systemic problem that could be addressed by clarity in statute – and better enforcement.a variety of illustrated apartments, apartment buildings and houses

What can we do?

One solution some tenant advocates propose to renters in their housing search is to pull their own credit check report and offer to share the report with each potential landlord. Another solution offered is for prospective tenants to ask for a copy of their credit report after the landlord pulls it. Of course, this still puts the tenant in a vulnerable position, and some may not want to jeopardize their relationship with a potential landlord.

Although the law is very clear that rental application fees are illegal in Vermont, the practice is still common. One contributing factor is the third-party application platforms used by many larger rental companies which don’t allow customization to the forms. Some housing providers, report that the software they rely on doesn’t allow them to change the language from “application fee” to “credit check” fee. Not every renter is aware of the laws around rental application fees, and even those who do know may be hesitant to assert their rights with such stringent competition for rental units. 

Some renters have found remedy by contacting the state Attorney General’s Consumer Assistance Program. If Vermonters are unjustly charged an application fee (worded as such), they may be able to recoup their costs by filing a complaint through the Attorney General. According to VTDigger, some rental companies stopped charging rental application fees after receiving several complaints through the program. Landlords can choose to include the cost of background checks and credit checks in their overall business operating expenses, and adjust their rent accordingly. 

9 V.S.A. § 4456a “Residential rental application fees; prohibited says “A landlord or a landlord’s agent shall not charge an application fee to any individual in order to apply to enter into a rental agreement for a residential dwelling unit. This section shall not be construed to prohibit a person from charging a fee to a person in order to apply to rent commercial or nonresidential property. (Added 1999, No. 115 (Adj. Sess.), § 5.)

Resources for renters

CVOEO has supports available for renters with questions about their rights and responsibilities under landlord-tenant law. For renters seeking support finding housing, working through barriers to renting, and developing application materials, the Finding Housing workshop – offered both as live Zoom classes and a self-paced, on-demand workshop – is a great resource. For renters seeking to repair their credit, to better understand their finances, or needing one-on-one financial coaching, CVOEO’s Financial Futures program has free educational opportunities as well. For people who are currently without housing or at risk of loosing their housing, CVOEO’s Community Action program can assist people with housing navigation, and potentially help with back rent, first month’s rent, security deposits and short-term rental subsidies for eligible applicants. As always, the Vermont Tenant’s Hotline – (802) 864-0099 and vttenants@cvoeo.org – is a resource for people with any questions about their tenancy.

Thriving Communities and Housing from the Peruvian Andes to Vermont’s Green Mountains

Chittenden County, climate change, Community Land Trusts, Creative Placemaking, economic growth, Economic Inequality, fair housing, guest blog post, housing development, Vermont

Hi! I’m Beth, and I’ve been volunteering with the Fair Housing Project over the summer, working mainly on social media with Corrine and Jess. As a brief introduction, I’m currently finishing up my PhD in Anthropology at Brown University. I’m originally from the UK, but my partner grew up in Shelburne, and we moved back to Vermont in 2021. 

Hiking in the Green Mountains after moving back to Vermont

PhD research

At first glance, it doesn’t seem like my PhD research has much to do with fair housing or thriving communities. I study herding communities and environments in the Peruvian Andes (think llamas, alpacas, and mountains) and how they responded to Spanish colonialism in the 16th century. More broadly, I’m interested in how rural communities renegotiate their lifeways in response to external changes. In the communities I study, responses often involve shifts in how people manage and use the environment. Today, for example, Andean herding communities have had to intensify wool production to meet increased global demand for wool, which is prized for its fineness and warmth. To do this, they’ve expanded wetland pasture so it can host more animals. I think similar shifts happened in response to Spanish colonialism: Spanish-operated mines relied on caravans of llamas to move goods between the highland mines and coastal ports. To meet increased transport demand, herders would have had to construct new infrastructure, such as corrals, along the route. Spanish colonialism was undoubtedly a violent period that led to the death of millions and the destruction of many Andean community practices. But because of a focus on this, and on the colonists themselves, less attention has been paid to understanding the diverse ways in which rural communities, in particular, responded to colonial policies.

The high-elevation (about 14,500 ft) herding landscape my PhD research is based in, in the Peruvian Andes

Housing

I’ve always been interested in housing, especially in rural areas. I grew up in a small coastal town in the UK and I see a lot of parallels between my hometown and where I live now, in Vermont, in terms of housing issues. In both places, housing inequities – in particular, rising housing costs and housing shortages caused in part by increased migration, second-home ownership, and short-term Airbnb-type rentals – have begun to hollow out our communities.

Short-term lets are increasingly impacting housing availability and community cohesion in rural areas

While we often, perhaps rightly, see these as threats to our homes, I think what’s more important is how we, as a community, respond to these changes. Like with Spanish colonialism and Andean herding communities, it is important to recognize both the major large-scale changes and the small-scale, local ways in which communities respond to these.

Manufactured (mobile) home communities are increasingly important within the Vermont housing ecosystem, because they provide affordable housing in a tight market. Recent news articles (part of the Seven Days “Locked Out” series have highlighted both the challenges manufactured home parks face and the ways in which they provide community for their residents.

Over the summer, I’ve used the Fair Housing Project’s Thriving Communities social media pages to highlight how people in Vermont and beyond are responding to housing challenges, whatever form these take. A lot of the news about housing in Vermont is bad – we all know the state is facing down a major housing crisis – but there has also been a lot of good stories and positive news!

A mural in Burlington, VT, that promotes fair housing and our right to housing free of discrimination. The mural was commissioned by Vermont’s Human Rights Commission and painted by Juniper Creative Arts.

I’ve learnt so much about the housing landscape in Vermont and the different agencies and organizations working to reduce housing inequities and discrimination across the state and it’s been great working with Jess, Corrine, and the others at the Fair Housing Project. Thank you!

NLIHC’s Out of Reach Report tells us what we already know: Vermont has a growing affordability problem – Here’s what we can do about it.

affirmatively furthering fair housing, affordable housing, Economic Inequality, fair housing, housing committee, housing inequality, Housing Inequality, rental housing market, renters

The recent release of the National Low Income Housing Coalition’s Out of Reach report shows that Vermont has the sixth largest shortfall between the average renter wage and the two-bedroom housing wage. In the Burlington/ South Burlington region, where the 2-bedroom housing wage jumps from the state’s average of $23.68 to $31.31, the housing wage gap is particularly acute. This means that full-time employees living in Burlington and South Burlington have to make $31.31per hour in order not to spend more than 30% of their income on rent. Meanwhile, the average hourly wage for Vermont renters is $13.83.

Source: Housing wages based on HUD fair market rents. NLIHC The Gap 2021 pg 5

“We’ve been in the midst of a chronic affordable housing crisis for many, many years,” Kerrie Lohr of Lamoille Housing Partnership, asserted to VTDigger earlier this week, “This report pretty much shows what we already know to be true, is that housing is out of reach for many of Vermont’s renters.” What housing advocates have been seeking to address over the course of Vermont’s long housing affordability history crisis has become especially acute during this past year. While Vermont’s housing sales spiked 38% this past year, many of these new residents purchased with cash-on-hand, often significantly over the asking price, with sales of million dollar homes almost tripling.

These numbers are particularly concerning when we turn an eye to Vermont’s pattern of racial inequity. This year saw rates of COVID doubling in communities of color, highlighting the disparities in health and economic opportunities for People of Color in Vermont. Nationally, the home ownership rate of White households is 70% to the 41% of Back homeowners, a gap caused and reinforced by a pervasive history of racist housing policies, inequal lending, and lack of meaningful policy change to address this systemic problem. Vermont’s homeownership gap is much larger with only 21% of Black households owning their home compared to 72% of white households. Local student activist (and current Fair Housing Project intern) Minelle Sarfo-Adu spoke to VPR about experiencing this stark disparity in her South Burlington community, “I think I only have two African American friends in the whole — like in all Vermont, that actually own homes,” she said. “Other than that, every other one of my friends actually rents, unless they’re white. All my white friends actually own their homes.”

The severe affordability crisis in Vermont creates an environment where landlords can be more discriminative in who they rent to. For renters who belong to the Fair Housing protected classes and face the greatest barriers to housing access in our state, this means longer and more desperate housing searches. While housing advocates are certain that most discrimination goes unreported, testing performed by the Housing Discrimination Law Project of Vermont Legal Aid indicates that housing providers generally disfavor African American renters, renters of foreign origin, renters with children and renters with disabilities. Reports from the CVOEO Vermont Tenants hotline and housing community forums are riddled with stories of people being turned away from housing because of a housing voucher or for having children (both violations of the Fair Housing Act in Vermont), and of desperate housing decisions such as signing leases before viewing the property or even offering to pay more than the listed monthly rent.

So what do we do about it? 

“Treat the housing emergency like an emergency,” retorts the collective voice of Anne N. Sosin, Mairead O’Reilly, and Maryellen Griffin in their recent VTDigger commentary, “Housing is a Public Health Crisis in Vermont.” Sosin is a policy fellow at the Nelson A. Rockefeller Center at Dartmouth College; O’Reilly is a medical legal partnership attorney at Vermont Legal Aid; and Griffin is a housing attorney at Vermont Legal Aid. Housing activists, policy makers, and the broader population of Vermont need to act now to address this growing problem, they wrote as they shared the major lessons housing advocates have gleaned from this past year of COVID response. Their voice has urgency, as some key opportunities to enhance renter protections have already passed. These key missed advocacy moments include the veto of the Rental Housing Safety Bill and a failure to delay the ending of the State of Emergency – which had expanded shelter space for houseless folks through federal CARES funding – until more rental housing was made available. Some economists and sustainable communities experts caution this trend is only at its early fruition as climate change pushes folks from more geographically vulnerable locations.

Much of what Sosin, O’Reilly, and Griffin called for is still possible. “Mobilize a statewide response,” they stated, noting that these solutions will be unique to the region and therefore require regional solutions. Our Fair Housing Friday panelists this spring noted that creative solutions require broad civic engagement, especially from those most impacted by the growing inequity of available resources. Housing Committees are a critical tool to mobilizing regional solutions to a statewide problem and can jumpstart conversations at the community level. The common thread  running through all these solutions is that they must center the needs of the communities consistently facing the highest barriers to housing.

Housing Equity & Preservation of Open Space

affordable housing, Burlington, Chittenden County, Chittenden County VT, density, economic growth, Economic Inequality, housing, housing committee, housing crisis, housing development, Housing Inequality, housing inequality, Inclusive Communities, NIMBYism, Place matters, public opinion, zoning, ,
updated, 12/29/20

At the Fair Housing Project, we generally applaud community members who organize to get their needs better met. But this featured article in the Other Paper as part of the Vermont Community News Network begs a counter response.  Continue reading Housing Equity & Preservation of Open Space →

A Creative Take on Housing Advocacy

Economic Inequality, fair housing, Homelessness, housing, housing crisis, Housing Inequality, resources, Uncategorized, Vermont,

Downstreet Housing Finds a New Way to Tell Their Story with this rich podcast, Community Pulse, featuring Downstreet’s Executive Director, Eileen Peltier. Already, Downstreet Housing has four episodes published and ready for listening! You can find it on their website at downstreet.org/podcast.

This third episode of Community Pulse features the reflections of Will Eberle, field director for the Agency of Human Services (AHS), serving the Barre and Morrisville District. 

Eberle’s voice offers a fresh perspective on homelessness, not just from his background working with homeless individuals through his work at AHS, nor his many roles working with at risk youth at Another Way and otherwise in Vermont communities. But Eberle speaks from his own personal perspective, having been without housing himself.

Eberle shares vivid vignettes of homeless individuals who he has worked with or encountered throughout his life, illustrating just how varied that experience might be and look like. Be it the young adult experiencing homelessness for the first time after exhausting their family resources, the full-time, minimum wage worker who sleeps in their car after full day shifts, or the chronically homeless individual who remains upbeat despite lack of access to permanent housing, Eberle shares their narratives with a frank honesty that personalizes a systemic issue across our state and country.


Community Pulse is a creative and thoughtful way to engage the every-day-listener around the housing crisis in our state, a much needed new take on an old, persistent issue. Centering the voices and experiences of the houseless community -during a time when housing could not be more critical to survival- is key in the shift towards more thriving, equitable communities.