FRANKFORT, Ky. — A bill prohibiting local bans on source of income discrimination has now passed both chambers of the Kentucky legislature. Kentucky’s senate passed House Bill 18 by a vote of 25 to 11 on Feb. 20 after heated debate from both sides of the issue.

The passage of House Bill 18 is a major win for the Republican super majority in both chambers and for protecting what they call property owner rights. Once it becomes law, the bill will make city and county ordinances requiring landlords to accept federal housing assistance as a source of rent income unlawful.

Lexington-Fayette Urban County Council passed an ordinance last week banning source of income discrimination which under this bill would be unlawful. Senate Majority Leader Damon Thayer, R-Georgetown, said he and others representing parts of Fayette County have heard from constituents concerned about these ordinances.

“They see the camel’s nose under the tent on this in cities across America where left-wing liberals on city councils are trying to force landlords into taking below market and I’m not going to stand for it while we got an opportunity to do something about it in this body,” Thayer said.

For weeks, Republicans have argued HB 18 protects a property owner’s private rights to run their business as they see fit. The bill passed 25-11 in the Senate after passing the House last month. Five senators from the GOP voted against party lines and voted NAY on the bill Tuesday.

Last week, the bill was amended to include language from a similar bill in the senate, Senate Bill 25. Thayer said while he is generally for local control, the actions taken by Lexington city leaders are a violation of the U.S. and Kentucky constitutions.

“What’s happening in Lexington is discrimination against the free market and the men and women who are in the business of being landlords and renting property to the citizens of Fayette County,” Thayer said

Since the bills’ introductions, Democrats have been vocal opponents of the state deciding how local governments address their housing struggles. State Sen. Reginald Thomas, D-Lexington said 20% of all Section 8 vouchers in Lexington get returned due to a lack of housing options that accept vouchers.

“Three-fourths or 75% of those Section 8 tenants are African American. So, this has a backdoor discrimination against those types of individuals,” Thomas said.

Opponents also argued this will negatively impact veterans, many of whom depend on some sort of federal assistance for housing after being discharged and/or disabled. State Sen. David Yates, D-Louisville, said the only thing Louisville and Lexington’s ordinances do is prohibit a landlord to turn away an applicant solely because they will pay rent with a form of assistance.

“If someone had lots of evictions or is a sex offender or just dirty, whatever it is or because you have a bad feeling about it and the smell of wine, it has to be that. It cannot be solely for the basis of income,” Yates said.

Republicans and Democrats agree on one thing; housing and a lack thereof is a problem. However, State Sen. Stephen West, R-Paris, said local governments enforcing source of income discrimination bans is not the way to address it.

“Fixing the housing crisis by putting new requirements on the backs of landlords is not necessarily the way to go,” West said.

Since it was amended by a committee substitute, this bill will head back to the House for concurrence, then to the governor’s desk after that, where it is likely to be vetoed.

Lexington’s ordinance would go into effect on March 1. Louisville has had a similar source of income discrimination ban since 2020, which would also be unlawful under this bill.

When asked if they had a statement on the bill’s passing, a spokesperson for the city of Lexington said “no.”