Novel York Appeals Court Strikes Down Law Protecting Renters Using Housing Vouchers

A New York appeals court on Thursday, March 5, 2026, overturned a state law designed to prevent landlords from discriminating against tenants who use government assistance, such as Section 8 vouchers, to pay their rent. The decision represents a significant setback for low-income renters and housing advocates across the state.

Ruling Details and Constitutional Concerns

The panel of five judges in the Appellate Division, Third Judicial Department, ruled against New York Attorney General Letitia James. They determined that the 2019 law prohibiting “source of income” discrimination violated the constitutional rights of property owners. The court argued that the Section 8 program’s requirement for building safety inspections constituted an infringement on the Fourth Amendment rights of landlords, forcing them to consent to governmental searches of their properties and records.

Section 8 and the Impact on New York Renters

Section 8, officially known as the Housing Choice Voucher Program, enables eligible tenants to qualify for rental assistance based on income. Participants typically contribute no more than 30% of their earnings towards rent, with the voucher covering the remaining balance. Approximately 123,000 households in New York City and tens of thousands more statewide rely on this program to afford housing.

The ruling raises concerns that landlords may be emboldened to discriminate against voucher holders, potentially exacerbating existing biases based on race, family status, or other protected characteristics. Advocates argue that source-of-income protections were enacted to address the systemic exclusion of voucher holders from housing opportunities.

Reactions to the Decision

Attorney General James expressed disappointment with the ruling, stating, “Every New Yorker deserves access to safe and dignified housing regardless of their income or background.” Her office is currently reviewing the decision and considering a potential appeal. Source

Jason Fane, the landlord involved in the case, and his company Ithaca Renting Company, expressed satisfaction with the outcome. His attorney, Curtis Johnson, stated that previous rulings had affirmed his client’s right to not be compelled to participate in a program that potentially waives Fourth Amendment rights. Source

Legal Aid Society attorney Evan Henley criticized the decision as “fundamentally flawed,” arguing it was not based on specific instances of landlords facing penalties for refusing inspections. He urged the Attorney General to appeal to the state’s highest court, warning that the ruling places thousands of New Yorkers at greater risk of housing discrimination. Source

Broader Implications for Housing Assistance Programs

The decision could have wider ramifications beyond Section 8. Landlords might use the ruling as justification to deny housing to individuals utilizing other forms of rental assistance, or to challenge local anti-discrimination laws. New York City’s CityFHEPS program, which provides rental assistance to over 60,000 households at a cost exceeding $1 billion, could also be affected. Source

Recent expansions of the CityFHEPS program to include rentals outside of the five boroughs have already faced resistance from some towns and counties enacting rules to prevent landlords from leasing to voucher holders.