Minneapolis’ ordinance barring landlords from discriminating against renters who use public assistance was upheld by the Minnesota Court of Appeals in a ruling last week. 

The ruling is the latest in a years-long legal back-and-forth between a group of landlords and the city of Minneapolis, which delayed enforcement of the non-discrimination ordinance for years. 

The Minneapolis City Council passed an ordinance in 2017 that barred landlords from denying potential renters just because they receive a housing voucher like Section 8. The ordinance also banned advertising a rental property as “no Section 8.”

Section 8 is a federal program that subsidizes rent for low-income people — generally families making less than half of an area’s median household income, which in Minneapolis is around $76,332 per year, according to recent Census data. 

Section 8 voucher recipients pay around 30% of their income for rent, and the federal government pays the rest directly to the landlord. The vouchers can’t be used for luxury apartments — in Minneapolis, they can be used for one-bedroom apartments under $1200 per month and two-bedrooms up to $1475. 

Tuesday’s ruling was a “huge win” for low-income renters in Minneapolis, said Larry McDonough, a policy attorney with HOME Line, which provides legal help to renters.

Finding rentals that accept Section 8 vouchers is a challenge. The Minneapolis Public Housing Authority has not opened up its waitlist to new applicants since 2019.  

A group of landlords sued the city in 2017 in an attempt to stop the ordinance from taking effect, arguing it violated state law and the Minnesota Constitution. 

A district judge initially agreed with some of the landlords’ claims and blocked the ordinance from taking effect. But the city appealed, and both the Minnesota Court of Appeals and the Minnesota Supreme Court sided with the city, sending the case back to district court.

The district judge who made the initial ruling retired, and the case was reassigned to Hennepin County District Judge Patrick Robben. Unlike his predecessor, he ruled in favor of the city, and in December 2022 lifted the order blocking enforcement of the ordinance. 

The landlords appealed Robben’s decision, but on Jan. 16, the Minnesota Court of Appeals again sided with the city.

The group of landlords could still appeal the latest decision to the Minnesota Supreme Court, but given that the court ruled in favor of the city the last time, the outlook isn’t good for the landlords, McDonough said. 

An attorney for the group of landlords did not immediately return a request for comment. 

Banning discrimination against renters who use public assistance is a priority for the governor’s office in the upcoming legislative session, Lt. Gov. Peggy Flanagan said at a Jan. 4 press conference.