Fair Housing Laws for Residential Landlords

Recognizing and complying with fair housing laws is an absolute necessity for all landlords doing business today. The penalties imposed on landlords and property owners for not complying with these laws can be quite severe. In some circumstances, such penalties can be well over ten thousand dollars. Now if that raises your eyebrow, then please read on…

Basics of the Fair Housing Act (FHA)

In 1968, the Fair Housing Act was passed by the Congress of the United States. Its purpose is to prohibit housing discrimination in the rental or purchase of homes (and other housing transactions) because of the following…

• Race
• Religion
• Color
• Sex
• National Origin
• Disability (handicap), and
• Familial Status (including pregnant women; children under the age of 18 living with parents or legal guardians; and people securing custody of children under 18)

The above seven classifications are called "protected categories". These categories are protected by fair housing laws.

The type of housing that is covered under the FHA includes most types of housing. However, in certain instances, the FHA exempts owner-occupied buildings with less than five units, single-family homes that are rented or sold without the use of a real estate broker, and housing that is operated by private clubs and organizations which limit occupancy to members only.

Actions that the FHA Prohibits

1. For the Sale and Rental of Housing:

No individual is allowed to take the following actions based upon race, national origin, color, sex, familial status, disability, or religion…

• Refuse to rent or sell housing,
• Deny a dwelling unit,
• Provide different housing services or facilities,
• Make a housing unit unavailable,
• Refuse to negotiate for housing,
• Establish different terms, standards, conditions, or privileges for the rental or sale of a dwelling unit,
• Falsely deny that a housing unit is available for rental, inspection, or sale,
• Prevent anyone from either accessing or becoming a member of a facility or service that is related to the rental or sale of housing, and
• For profit, convince owners to sell or rent (a practice called block busting).

2. For Mortgage Lending Practices:

No individual is allowed to take the following actions based upon race, national origin, color, sex, familial status, disability, or religion…

• Refuse to grant a mortgage loan,
• Establish different conditions and terms for a loan,
• Refuse to furnish information on loans, or
• Discriminate in making property appraisals

3. When Advertising Housing for Sale or Rent:

No individual is allowed to take the following actions based upon race, national origin, color, sex, familial status, disability, or religion…

• Advertise or make any statement that shows a preference or limitation based upon race, national origin, color, sex, familial status, disability, or religion. This prevention against "discriminatory advertising" also applies to both single-family and owner-occupied dwellings that are otherwise exempt from the Fair Housing Act.

In addition, it is illegal for anyone to threaten, coerce, intimidate or interfere with anyone exercising a fair housing and discrimination right or assisting others who exercise that right.

Some examples of Fair Housing Discrimination

Based on the FHA, it is illegal for landlords to take the following actions based on race, color or any other protected category…

• Falsely deny that a rental unit is available.
• Use of "linguistic profiling" to disqualify tenant applicants for rental housing.
• Refusing to accommodate the needs of handicapped tenants, such as allowing wheel chair ramps or guide dogs.
• Setting inconsistent and more restrictive rental policies for certain tenants.
• Refusing to rent to members of certain groups.

Penalties for Landlords who commit Fair Housing
Discrimination

If a landlord commits housing discrimination that is proven in a court of law, the following penalties may be assessed against the landlord…

• Compensation to the victim for actual damages, including humiliation and pain and suffering.
• Injunctive relief which includes making the housing available to the victim.
• Payment of reasonable attorney's fees and costs, and
• Payment of a civil penalty to the Federal Government to "vindicate the public interest". The maximum penalties are $10,000 for a first violation and $50,000 for a third violation that occurs within seven years.

Education is the Key to Prevent Violating Fair Housing Laws

To prevent needless violations of fair housing laws, it certainly pays to become knowledgeable of discrimination laws and adopt "across-the-board" policies that prevent it. Remember that all qualified individuals have a right to housing without discrimination.

For more in-depth information about Fair Housing Laws, please visit The Landlord's Library book collection. It's a terrific, one-stop source for practical, comprehensive information on the entire subject of residential landlording.

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