Lexington will soon become the second city in Kentucky to ban landlords from discriminating against people who use federal housing vouchers and alternative forms of payment to pay rent.

The Lexington-Fayette Urban County Council voted 13–2 to pass the ordinance after months of debate.

Under the ordinance, the Lexington-Fayette County Human Rights Commission would investigate complaints a landlord discriminated against someone who uses a federal voucher or other forms of payment to pay rent. The commission could assess fines if a landlord is found guilty.

But it’s not clear if the ban can take effect March 1.

The GOP-controlled Kentucky General Assembly is moving swiftly to pass a bill that would prohibit local governments from enacting such bans. House Bill 18 and Senate Bill 25 have passed their respective chambers. On Wednesday, the day before the council’s vote, the Senate State and Local Government committee passed a revised HB 18 that combines the House and Senate bills, which were similar but not identical.

That likely means if the full Senate passes amended HB 18, the bill will be sent back to the House who can okay and or reject the changes. If passed by both chambers., it then goes to Democratic Gov. Andy Beshear’s desk for signature or veto. But there is likely enough votes in the Republican-controlled House and Senate to override the veto.

Several Lexington council members who voted against the ordinance have previously said they felt the city should wait until the General Assembly concludes the legislative session before voting on the ordinance.

Bans help people move out of shelters and into more neighborhoods, advocates say

Supporters of the local ordinance have said the city’s homeless shelter system has a backlog of people waiting for housing because too few landlords take federal housing vouchers, called Housing Choice, but commonly referred to as Section 8.

The vast majority of voucher holders — more than 70% — are Black, according to data provided by the Lexington-Fayette Housing Authority. Yet the majority of available properties that take Housing Choice in Lexington are in largely Black neighborhoods, recent searches of available rental properties show.

The ban on source of income would address long-standing inequalities in rental housing, Councilwoman Shayla Lynch has said. Lynch is one of the co-sponsors of the legislation.

Landlords say federal vouchers are cumbersome, problematic

Landlords have pushed back against the measure, saying it would force them to participate in the Housing Choice program. That program requires inspections and other regulations. Landlords have argued the process can be cumbersome, resulting in lost rental income.

Others have argued rents will increase to make it unaffordable for people with housing vouchers. Housing vouchers cover all or a portion of a person’s rent depending on income.

Housing advocates, however, point to research showing cities and states with bans on source of income have not seen rental rates climb higher than jurisdictions without source of income bans.

Source of income bans aren’t new.

Nineteen states have enacted similar protections including South Dakota, Oregon and Washington. Louisville’s source of income ban was enacted in 2020. Louisville is believed to be one of at least 100 local governments to enact such a ban.

The bans have also been upheld in federal and state court, housing advocates have said.

Council members who voted against the ordinance were Fred Brown and Chuck Ellinger. Those who voted in favor were Lynch, David Sevigny, Vice Mayor Dan Wu, Liz Sheehan, Hannah LeGris, Kathy Plomin, Tayna Fogle, James Brown, Preston Worley, Jennifer Reynolds, Denise Gray and Brenda Monarrez.