Chapel Hill Approves Source of Income Protections Policy

On May 24, 2023, the Chapel Hill Town Council approved a Source of Income Protections policy. The policy requires housing developments that receive Town funding or involve the conveyance of Town property to accept all lawful sources of income, including housing choice vouchers.

The new policy is designed to prevent discrimination based on source of income and increase the supply of units that accept income-based housing subsidies. 

Housing choices vouchers and similar housing subsidy programs provide valuable financial assistance for low-income families seeking affordable housing.  However, there are limited opportunities for households with housing subsidies to use their voucher within Orange County, and especially in the Town of Chapel Hill. Despite generous incentive packages and outreach efforts to landlords, typically there are around 100 unleased vouchers at any given time, or about 15% of the County’s available vouchers.

Sarah Viñas, Director of the Town’s Department of Affordable Housing and Community Connections explained that “because North Carolina state law does not include source of income as a protected category in housing discrimination, municipalities are limited in what they can require of landlords.”

Several other North Carolina municipalities have addressed this by adopting narrow policies focused only on housing that receives local resources.

“This policy takes an important step forward in expanding protections for households relying on housing subsidies to live in Chapel Hill,” Viñas said.

The new policy supports the Town Council’s 2023-25 strategic focus area for Affordable Housing and Housing Production that seeks to increase housing access across a range of incomes and housing types and achieve equitable housing outcomes for historically marginalized populations.  The Town will begin implementing the policy immediately.