COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1721S.01I Bill No.:SB 507 Subject:Cities, Towns, and Villages; Counties; County Government; Landlords and
Tenants; Political Subdivisions
Type:Original Date:March 3, 2025Bill Summary:This proposal provides that counties and cities shall not enact, maintain, or
enforce certain ordinances relating to landlords and tenants.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on General
Revenue $0$0$0
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 1721S.01I
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028$0$0$0Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 1721S.01I
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FISCAL ANALYSIS
ASSUMPTION
§441.043 – Rental Property and Federal Housing Assistance Program
Officials from the Department of Mental Health (DMH) assume the proposal modifies
§441.043. This bill restricts city or county government from prohibiting landlords’ ability to use
or consider income-qualifying methods, credit scores, eviction or property damage history,
criminal records, and limiting security deposits. It prohibits local government from requiring
private property owners to accept federal housing assistance vouchers as payment for rent. The
DMH has a few programs which offer rental assistance that are funded through federal sources.
It is very challenging for DMH consumers to obtain rentals in the current market. If landlords in
areas that protect “source of income” revert back to disallowing tenants because of subsidies, this
could cause additional housing instability within our service population which typically leads to
poorer treatment outcomes and higher utilization of crisis services. This could also require
funding of incentive programs to encourage landlords to give DMH service population the
opportunity to rent in the private market. Those could include landlord mitigation funds or
landlord incentive payments. DMH currently does not have any such funds and it would be
challenging to predict how much would be necessary. The Division of Behavioral Health (DBH)
assumes this will likely impact consumers seeking housing. It is unknown the level of impact to
consumer or the potential increase in those consumers seeking crisis services. Fiscal impact to
DBH is unknown.
Oversight notes the following on DMH’s website:
Federal Housing Subsidies (Section 8, etc.) for Low-Income Households
Public Housing Agencies - Many cities and towns in Missouri have Public Housing
Agencies (PHA's). These agencies administer federally funded low-income housing in
their towns or counties; some also own their own affordable rental properties to rent to
area residents who cannot afford the normal rents in the area. Most PHA's also administer
the federal Housing Choice Voucher Program, commonly known as Section 8. If you
cannot find affordable housing on your own, or wish to apply for Section 8 housing, your
local Public Housing Agency may be able to help. In some cases, your local Community
Action Agency office will also be your Public Housing Agency.
Oversight assumes the state may be impacted from this proposal, however; Oversight assumes
this would be more of an indirect impact for this proposal.
Officials from Kansas City assume this proposal may have a negative fiscal impact as it may
increase homelessness.
Oversight assumes local political subdivisions could be impacted from this proposal, however;
Oversight assumes this would be more of an indirect impact for this proposal. L.R. No. 1721S.01I
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Officials from the Department of Economic DevelopmentDepartment of Labor and
Industrial Relations each assume the proposal will have no fiscal impact on their respective
organizations. Oversight does not have any information to the contrary. Therefore, Oversight
will reflect a zero impact in the fiscal note for these agencies.
In response to similar legislation from 2024, Perfected HB 2385, officials from Lincoln County
assumed the proposal will have no fiscal impact on their organization. Oversight does not have
any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities and counties were requested to respond to this proposed legislation but did
not. A listing of political subdivisions included in the Missouri Legislative Information System
(MOLIS) database is available upon request.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0
FISCAL IMPACT – Small Business
Small businesses who operate rental properties could be impacted as a result of this proposal.
FISCAL DESCRIPTION
This act provides that no county or city shall enact, maintain, or enforce any ordinance or
resolution that:
(1) Prohibits landlords from refusing to lease or rent a privately-owned, single family or
multiple-unit residential or commercial rental property to a person because his or her
lawful source of income includes a federal housing assistance program funding;
(2) Prohibits landlords from using income-qualifying methods, credit scores, credit
reports, or eviction or property damage history, or requesting such information to
determine whether to rent or lease a property to a prospective tenant; L.R. No. 1721S.01I
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(3) Prohibits landlords from requesting criminal records from a prospective tenant;
(4) Limits the amount of money for a security deposit; or
(5) Requires tenants to automatically receive the right of first refusal.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Mental Health
Kansas City
Department of Economic Development
Department of Labor and Industrial Relations
Lincoln County
Julie MorffJessica HarrisDirectorAssistant DirectorMarch 3, 2025March 3, 2025