Condominium Conundrum: Fair Housing Laws And Their Applicability

The Fair Housing Act (FHA) is a federal law that prohibits discrimination in most housing-related activities, including buying, selling, renting, or financing. The Act covers a wide range of housing situations, including condominiums, and aims to prevent people from being discriminated against based on their race, colour, religion, sex, national origin, disability, or family status. While there are limited exceptions to the Act, such as owner-occupied buildings with no more than four units, it is important to note that even if a property is exempt from the FHA, there may still be local or state fair housing laws that apply. The FHA is enforced at the federal level by the U.S. Department of Housing and Urban Development (HUD) and aims to ensure equitable treatment in housing transactions.

Condominiums and the Fair Housing Act

The Fair Housing Act (FHA) is a federal law that prohibits discrimination in most housing-related activities, including buying, selling, renting, or financing. It applies to "individuals, corporations, associations, and others involved in the provision of housing and residential lending, including property owners, housing managers, homeowners, and condominium associations, lenders, real estate agents, and brokerage services."

Condominiums fall under the umbrella of the FHA and are subject to its provisions. The Act makes it unlawful to discriminate on the basis of race, color, religion, sex, disability, familial status, or national origin. This includes discrimination in the sale and rental of housing, as well as in mortgage lending.

There are limited exceptions to the FHA. It does not apply to owner-occupied buildings with no more than four units, single-family houses sold or rented directly by the owner without an agent, and housing operated by religious organizations or private clubs that limit occupancy exclusively to their members.

The FHA requires reasonable accommodations and allows reasonable modifications to be made for people with disabilities. Condominium associations (HOAs) must also comply with these requirements and ensure that owners and residents are not discriminated against. HOAs are encouraged to engage in an "interactive process" with individuals requesting reasonable accommodations and work collaboratively to find a solution.

Failure to comply with the FHA can result in civil penalties of up to $50,000, and violations may not always be immediately apparent. The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Justice (DOJ) are responsible for enforcing the FHA and can take legal action against those who violate the statute.

In conclusion, the Fair Housing Act applies to condominiums and prohibits discrimination in the provision of housing and residential lending. Condominium associations must ensure compliance with the FHA to avoid legal consequences and provide equal opportunities for all individuals.

Discrimination based on protected characteristics

The Fair Housing Act (FHA) prohibits discrimination in housing based on protected characteristics. These protected characteristics are known as protected classes. The seven federally protected classes under the FHA are race, religion, national origin, colour, familial status (the presence of children under the age of 18 in a household), sex (including sexual orientation and gender identity), and disability.

The FHA applies to "individuals, corporations, associations, and others involved in the provision of housing and residential lending, including property owners, housing managers, homeowners, and condominium associations, lenders, real estate agents, and brokerage services."

The FHA prohibits discrimination in the sale and rental of housing, as well as in mortgage lending. It is illegal to take any of the following actions because of an individual's membership in a protected class:

• Refuse to rent or sell housing
• Refuse to negotiate for housing
• Make housing unavailable
• Set different terms, conditions, or privileges for the sale or rental of a dwelling
• Provide different housing services or facilities
• Falsely deny that housing is available for inspection, sale, or rental
• Make, print, or publish any notice, statement, or advertisement indicating any preference, limitation, or discrimination
• Impose different sales prices or rental charges
• Use different qualification criteria, applications, or sale or rental standards
• Evict a tenant or a tenant's guest
• Fail or delay maintenance or repairs
• Limit privileges, services, or facilities of a dwelling
• Discourage the purchase or rental of a dwelling
• Assign a person to a particular building or neighbourhood because of their protected characteristic
• Persuade homeowners to sell their homes by suggesting that people of a particular protected characteristic are about to move into the neighbourhood (blockbusting)
• Refuse to provide or discriminate in the terms or conditions of homeowners insurance
• Deny access to or membership in any multiple listing service or real estate brokers' organisation

In addition, it is illegal to threaten, coerce, intimidate, or interfere with anyone exercising their fair housing rights or assisting others in exercising their rights. Retaliation against individuals who have filed a fair housing complaint or assisted in an investigation is also prohibited.

The FHA also provides additional protections for persons with disabilities. Housing providers must make reasonable accommodations and allow reasonable modifications to facilitate the use of housing by individuals with disabilities. Certain multifamily housing must be accessible to persons with disabilities.

While there are seven federally protected classes, states and municipalities can identify additional protected classes within their jurisdiction. For example, Pennsylvania has added protections for individuals over 40 based on age and for users, handlers, and trainers of assistance animals.

The FHA applies to most housing situations, including condominiums. However, there are some limited exemptions, such as owner-occupied buildings with no more than four units, single-family houses sold or rented by the owner without an agent, and housing operated by religious organizations or private clubs that limit occupancy to members.

Reasonable accommodations and modifications

The Fair Housing Act (FHA) prohibits housing providers from refusing to make reasonable accommodations and modifications that may be necessary to allow persons with disabilities to have an equal opportunity to use and enjoy a dwelling, including public and common use spaces.

A reasonable accommodation is a change, exception, or adjustment to a rule, policy, practice, or service. Reasonable accommodations eliminate barriers that prevent persons with disabilities from fully participating in housing opportunities, including both private housing and federally-assisted programs or activities. Housing providers cannot require persons with disabilities to pay extra fees or deposits or place any other special conditions or requirements as a condition of receiving a reasonable accommodation.

Examples of reasonable accommodations include:

• Assigning an accessible parking space for a person with a mobility impairment
• Permitting a tenant to transfer to a ground-floor unit
• Adjusting a rent payment schedule to accommodate when an individual receives income assistance
• Adding a grab bar to a tenant’s bathroom
• Permitting an applicant to submit a housing application via a different means
• Permitting an assistance animal in a "no pets" building for a person who is deaf, blind, has seizures, or has a mental disability

A reasonable modification is a structural change made to existing premises, occupied or to be occupied by a person with a disability, to afford such person full enjoyment of the premises. Reasonable modifications can include structural changes to interiors and exteriors of dwellings and to common and public use areas. Examples include the installation of a ramp into a building, lowering the entry threshold of a unit, or the installation of grab bars in a bathroom.

Housing providers are required to provide and pay for structural modifications as reasonable accommodations/modifications. However, if providing the accommodation would impose an undue financial and administrative burden on the housing provider or fundamentally alter the nature of the housing provider's program, the request may be denied.

It is important to note that the requirement to provide reasonable accommodations and modifications applies to individuals, corporations, associations, and others involved in the provision of housing or residential lending, including condominium associations.

Enforcement and penalties

The Fair Housing Act (FHA) prohibits discrimination in housing based on race, colour, religion, sex, gender identity, sexual orientation, disability, familial status, and national origin. It applies to most housing situations, including condominiums.

The Department of Justice enforces the FHA and has the power to file suits under the Act and the Equal Credit Opportunity Act. The Department brings cases when there is evidence of a pattern or practice of discrimination or when a denial of rights to a group of persons raises an issue of general public importance. The Department of Justice may also institute criminal proceedings when the force or threat of force is used to deny or interfere with fair housing rights.

Individuals who believe they have been victims of illegal housing practices can file a complaint with the Department of Housing and Urban Development (HUD) or file their own lawsuit in federal or state court. The Department of Justice brings suits on behalf of individuals based on referrals from HUD. Civil penalties for violations of the FHA can be as high as $50,000.

HUD's Office of Fair Housing and Equal Opportunity (FHEO) works to eliminate housing discrimination and investigates complaints of housing discrimination. FHEO enforces fair housing laws and individuals can file a complaint with FHEO if they believe they have been discriminated against in violation of any federal fair housing laws.

In addition to the FHA, a variety of other federal civil rights laws, including Title VI of the Civil Rights Act, Section 504 of the Rehabilitation Act, and the Americans with Disabilities Act, prohibit discrimination in housing and community development programs and activities, particularly those assisted with HUD funding. These civil rights laws include obligations such as taking reasonable steps to ensure meaningful access to their programs and activities for persons with limited English proficiency (LEP) and taking appropriate steps to ensure effective communication with individuals with disabilities.

State and local fair housing laws may also apply and may prohibit additional forms of discrimination or cover a greater number of properties than the FHA. For example, while the FHA generally doesn't apply to owner-occupied buildings with four or fewer units, Massachusetts' fair housing law applies to all but owner-occupied, two-family houses.

Exemptions to the Fair Housing Act

The Fair Housing Act (FHA) applies to most housing situations, but there are some exemptions.

Owner-Occupied Buildings with Four or Fewer Units

The FHA generally does not apply when a building has four or fewer units, and the owner lives in one of them. However, it is important to note that these dwellings are not exempt from the Pennsylvania Human Relations Act unless they contain only two units, with one being owner-occupied.

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 houses at one time. This exemption does not apply in the state of Pennsylvania due to the Pennsylvania Human Relations Act.

Religious Organizations

Religious organizations can limit occupancy or give preference to people of their religion. However, they cannot discriminate based on race, colour, or national origin.

Private Clubs

The FHA allows private clubs to limit occupancy to their members if they are leasing apartments and not doing so for a commercial purpose.

Senior Housing

The FHA includes "familial status" as one of its seven protected classes, referring to households with at least one child under 18. However, properties that qualify as senior housing may be exempt from this ban. These include properties that fit the rules of 55-and-older or 62-and-older communities or those that participate in a federal, state, or local senior housing program.

It is important to note that even if a property is exempt from the FHA for one of the reasons listed above, it must still comply with the law's ban on discriminatory statements, notices, or advertising. Additionally, state laws may have different exemptions that do not coincide with the FHA.

Frequently asked questions