Fair Housing Act

All aspects of the leasing process for residential properties must comply with federal fair housing laws. Title VIII of the Civil Rights Act of 1968, known as the Fair Housing Act, prohibits housing discrimination, both in rental and sales practices, on the basis of race, color, religion, or national origin. This was amended in 1974 to include sex as a protected class, and The Fair Housing Amendments Act of 1988 added handicap and familial status.

The seven protected classes are as follows:

  • Race
  • Color
  • Religion
  • Sex
  • National origin
  • Familial status
  • Handicap

Discriminatory activities include:

  • Refusal to rent
  • Refusal to negotiate rental
  • Advertising indicating discriminatory preference or limitation through language or the use of locations, logos, or human models
  • Selective use of media (e.g., advertising only in newspapers whose readership is predominately white)
  • Refusal to show available units
  • Refusal to supply rental information, such as rental rates
  • False representation of non-availability
  • Imposition of different rental charges, security deposits, or different rental terms or conditions
  • Requesting discriminatory information on rental applications (e.g., asking about number of children or about the presence of handicap)
  • Discriminatory qualification criteria, applications, or procedures
  • Delay tactics to frustrate a person from pursuing rental
  • Steering (channeling minorities to certain parts of a community, building, or floor)
  • Restrictions or different provisions in lease contracts
  • Provision of different levels of services or facilities
  • Eviction on the basis of a protected class
  • Discriminatory notices or statements
  • Sexual harassment

Fair housing laws impact almost every aspect of the leasing process—from advertising to prospecting to move-out. Managers must design policies, procedures, and programs that are not discriminatory and that assist staff in avoiding inadvertent discrimination. It is wise to seek advice of legal counsel regarding specifics to ensure compliance. Most importantly, the policies and procedures should be followed to the letter for every ad design, phone call, or prospect visit to ensure that each prospect is treated identically.

State and Local Laws
States and some municipalities have separate laws dealing with fair housing. These laws may provide broader coverage than the federal laws, so it is imperative that you familiarize yourself with the legislation applicable to your properties.

Before you rent, each member of your management company must know the laws at the federal, state, and municipal levels. Depending on the state and city, the following classes could be protected:

Class

Minority protection example

Sexual Orientation

same-sex couples

Gender Identity

transgender individuals

Marital Status

single mother

Ancestry

culture/origin

Age

young adult renters

Source of Income

contractors

Section 8 Voucher

rental assistance

Political Ideology

anarchist/socialist

Unfavorable Discharge from Military Service

Students

 

Comments

Very detailed article - I'm using this as a refresher for an upcoming compliance audit. Thank you IREM!

This article is very useful and informative! It not only lists federal law, but also potential state and local protected classess as well.