On March 5, 2026, a New York State Appellate Division panel of five judges unanimously ruled that the 2019 state law banning source of income discrimination against Section 8 housing voucher holders is unconstitutional. The court found that forcing landlords to participate in the Section 8 program violates their Fourth Amendment rights because the program requires government inspections of rental properties and access to landlord records.
According to the law firm Bond, Schoeneck and King, which represented the landlord in the case, this is the first time any appellate court in the country has struck down a source of income discrimination statute. The decision could impact similar laws in at least 19 states and more than 130 municipalities across the country.
The case originated in 2022 when New York Attorney General Letitia James sued Ithaca landlord Jason Fane for refusing to accept Section 8 vouchers. A lower court sided with Fane, and the Appellate Division upheld the ruling unanimously. The attorney general’s office has said it is reviewing the decision and considering an appeal.
Approximately 123,000 households in New York City use Section 8 vouchers to help pay rent. Roughly 250,000 households statewide rely on the program. New York City has its own separate local law banning source of income discrimination that remains in effect, but enforcement has been significantly undermined by the ruling.
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