Fair Housing Laws: Multifamily's Rights And Responsibilities

The Fair Housing Act (FHA) is a federal law that prohibits discrimination in housing based on race, colour, religion, sex, disability, familial status, or national origin. It applies to most housing situations, including rental properties and homeownership. The FHA covers housing for sale or rent, and applies to both privately and publicly funded housing. While it generally doesn't apply to owner-occupied buildings with four or fewer units, it's important to note that even if a property is exempt from the FHA, there may be local or state fair housing laws that apply. Certain multifamily dwellings, such as condominiums and apartment buildings, must comply with design and construction requirements under the FHA to ensure accessibility for individuals with disabilities.

Discrimination based on race, colour, religion, sex, disability, familial status, or national origin

The Fair Housing Act prohibits discrimination in housing because of race, colour, religion, sex (including gender identity and sexual orientation), disability, familial status, or national origin.

Race and Colour

The Fair Housing Act was enacted in 1968 to prohibit race discrimination in sales and rentals of housing. However, more than 30 years later, race discrimination in housing remains a problem. Housing providers sometimes try to disguise their discrimination by giving false information about the availability of housing, or by steering homeseekers to certain areas based on race. The Department of Justice has brought many cases alleging discrimination based on race or colour.

Religion

The Fair Housing Act prohibits discrimination in housing based on religion. This covers instances of overt discrimination against members of a particular religion, as well as less direct actions, such as zoning ordinances designed to limit the use of private homes as places of worship. The Act contains a limited exception that allows non-commercial housing operated by a religious organisation to reserve such housing for persons of the same religion.

Sex

The Fair Housing Act makes it unlawful to discriminate in housing on the basis of sex, including sexual harassment. The Department of Justice's enforcement program is aimed at landlords who create an untenable living environment by demanding sexual favours from tenants or by creating a sexually hostile environment for them. Pricing discrimination in mortgage lending may also adversely affect women, particularly minority women. This type of discrimination is unlawful under both the Fair Housing Act and the Equal Credit Opportunity Act.

Disability

The Fair Housing Act prohibits discrimination on the basis of disability in all types of housing transactions. The Act defines persons with a disability as those with mental or physical impairments that substantially limit one or more major life activities. Housing providers must make reasonable accommodations and allow reasonable modifications to enable persons with disabilities to enjoy their housing. Certain multifamily housing must be accessible to persons with disabilities.

Familial Status

The Fair Housing Act prohibits discrimination in housing against families with children under 18. The Act prevents housing providers from imposing any special requirements or conditions on tenants with custody of children. For example, landlords may not place families with children in any single portion of a complex, or restrict their access to recreational services provided to other tenants.

National Origin

The Fair Housing Act prohibits discrimination based on national origin, including an individual's birthplace, ethnicity, ancestry, culture, or language. It is unlawful for a landlord, property manager, real estate agent, or property owner to treat someone differently because of their national origin.

Multifamily housing accessibility requirements

The Fair Housing Act (FHA) protects tenants and homebuyers from housing discrimination. It applies to most housing situations across the United States, including its territories and possessions.

The FHA covers most types of housing. However, it does not apply to owner-occupied buildings with four or fewer units, single-family homes rented without a broker, religious organisations, private clubs, and senior housing.

The FHA prohibits discrimination based on race, colour, religion, sex, disability, familial status, or national origin. It also makes it illegal to harass persons based on these factors.

In addition to the FHA, certain multifamily housing must also be accessible to persons with disabilities. The Fair Housing Act Accessibility Guidelines outline seven basic requirements that must be met for housing to be accessible:

• An accessible building entrance on an accessible route.
• Accessible common and public use areas.
• Usable doors (usable by a person in a wheelchair).
• An accessible route into and through the dwelling unit.
• Light switches, electrical outlets, thermostats, and other environmental controls in accessible locations.
• Reinforced walls in bathrooms for later installation of grab bars.
• Usable kitchens and bathrooms.

These requirements apply to all "covered multifamily dwellings" designed and constructed for first occupancy after March 13, 1991. Covered multifamily dwellings include all dwelling units in buildings containing four or more units with one or more elevators and all ground-floor units in buildings containing four or more units without an elevator.

It is important to note that the FHA does not require any changes to individual apartment units. However, common areas such as rental offices, parking lots, and community rooms are generally required to be ADA-compliant.

Housing discrimination against families with children

• Families with children under the age of 18
• Pregnant individuals
• Any person in the process of securing legal custody of a minor child (including adoptive or foster parents)
• Persons with written permission from the parent or legal guardian of a minor child

Examples of familial status discrimination include:

• Refusing to rent to families with children
• Evicting families once a child joins the family
• Requiring families with children to live in specific areas of a building or community
• Imposing overly restrictive rules regarding children's use of common areas, such as pools or playgrounds
• Advertising that prohibits children
• Charging additional fees or rent to families with children
• Segregating housing by imposing adult and family sections or buildings
• Creating gender-specific rules that prevent parents and children, or male and female children, from sharing a bedroom

It is important to note that the FHA provides an exemption for "housing for older persons," which includes certain senior housing facilities and communities. This exemption allows senior housing to deny renters under a certain age. However, this exemption does not permit discrimination against families with children in standard single-family homes or multi-family apartment buildings.

If individuals believe they have experienced discrimination in housing due to familial status, they can file a complaint with the Department of Housing and Urban Development (HUD) or the relevant state or local fair housing enforcement agency.

Discrimination in mortgage lending

Despite these laws, biases still impact many borrowers. A 2021 study found that minority groups were charged interest rates that were nearly 8% higher and were rejected for loans 14% more often than privileged groups. This type of discrimination is known as redlining, where financial services are denied to residents of certain neighbourhoods based on race or ethnicity. Redlining has contributed to the racial wealth gap that persists in the United States today.

To combat discrimination in mortgage lending, it is important for consumers to understand mortgage approval guidelines and compare multiple lenders. If individuals believe they have been discriminated against, they can file a complaint with the Consumer Financial Protection Bureau (CFPB) or the U.S. Office of Fair Housing and Equal Opportunity (FHEO).

To address bias in mortgage lending, MIT researchers have developed a technique called DualFair, which removes multiple types of bias from a mortgage lending dataset. This technique improves the accuracy and fairness of machine-learning models that predict whether borrowers will receive a mortgage loan.

Fair Housing Act exemptions

The Fair Housing Act (FHA) applies to most housing situations, but there are some exemptions. It's important to note that even if a property is exempt from the FHA, it must still comply with the law's ban on issuing discriminatory statements, notices, or advertising. Additionally, no one is exempt from the Civil Rights Act of 1866, which prohibits all racial discrimination in the sale or rental of property. Here are the exemptions to the Fair Housing Act:

Owner-Occupied Buildings

Owner-occupied buildings with no more than four units are generally exempt from the FHA. However, this exemption varies by state and local laws. For example, in Pennsylvania, a dwelling with four or fewer units is exempt only if it is owner-occupied, and in Massachusetts, the FHA generally applies to all but owner-occupied, two-family houses.

Single-Family Homes Rented or Sold Without a Broker

The FHA does not apply when a single-family house is sold or rented without a broker, as long as the owner does not own more than three such houses. Again, this exemption may vary by state, as in Pennsylvania, where there is no such exemption.

Religious Organizations and Private Clubs

Religious organizations and private clubs can legally limit occupancy or give preference to members of their own religion or club if they are not operating for a commercial purpose. However, they still cannot discriminate based on race, colour, or national origin.

Senior Housing

Senior housing communities that fit the rules of 55 and older or 62 and older are exempt from the ban on familial status discrimination. Additionally, properties that participate in a federal, state, or local senior housing program may also be exempt.

Occupancy Standards

Depending on local or state occupancy standards, landlords can limit the occupancy to the allowable number of occupants. For example, if the maximum occupancy is three individuals, this can be included in marketing materials and used to limit occupancy.

Frequently asked questions