statutory compliance

Chapter Six: Statutory Compliance in Property Management

Introduction

• Importance of Statutory Compliance
    - All real estate licensees, including property managers, must understand laws that govern their profession.
    - Key laws that property managers need to be familiar with:
      - The Americans with Disabilities Act (ADA)
      - The Federal Fair Housing Act
      - The Equal Credit Opportunity Act (ECOA)
      - Uniform Residential Landlord Tenant Act (URLTA)
      - Georgia State Landlord Tenant Law

The Americans with Disabilities Act (ADA)

• Overview
    - The ADA is a federal law that mandates accommodations for persons with disabilities in commercial spaces.
    - Property managers may need to renovate spaces to comply with ADA requirements.

Definitions Related to ADA

• Person with a Disability:
    - Defined as someone who:
      * Has a physical or mental impairment that significantly limits major life activities.
      * Has a history of such impairment.
      * Is perceived by others as having such impairment.
• Public Accommodations:
    - Facilities owned by private entities that must comply with ADA, including:
      * Restaurants
      * Retail stores
      * Hotels
      * Movie theaters
      * Private schools
      * Convention centers
• Reasonable Accommodations:
    - Defined as fair and sensible changes to facilities, examples include:
      * Installing wheelchair ramps.
      * Designating accessible parking spaces.
      * Adding safety railings in restrooms.
      * Incorporating braille signage.
      * Adjusting pet policies for service animals.
    - Important Note: Changes cannot be fundamental alterations of services or cause undue financial burdens.

ADA Requirements

• Main Sections:
    - Title I: Employment
      - Protects employees with disabilities:
        * Applies to employers with 15 or more employees.
        * Requires reasonable accommodations for employees unless it causes undue hardship.
        * Discrimination in hiring practices is prohibited, especially concerning disability-related questions.
    - Title III: Public Accommodations
      - Prevents discrimination in facilities:
        * Prohibits exclusion, segregation, and unequal treatment of persons with disabilities.
        * Requires compliance with architectural standards for new or altered buildings.

Enforcement of the ADA

• Consequences for Non-Compliance:
    - Property managers must report violations to:
      * U.S. Equal Employment Opportunity Commission (EEOC)
      * U.S. Department of Justice

Federal Fair Housing Act

• Overview
    - Prohibits discrimination based on:
      * Religion
      * Race
      * Color
      * National origin
      * Sex (including gender identity and sexual orientation)
      * Disability
      * Familial status (having children).
• Protected Classes:
    - Legally protected against discrimination in housing.
• Enforcement:
    - Enforced by the U.S. Department of Housing and Urban Development (HUD).
    - HUD conducts tests to ensure compliance.
• Example Scenario:
    - A discriminatory scenario illustrating violations:
      * Minority applicants told there are no vacancies while a white applicant is invited to apply.
    - Violating fair housing laws can result in severe penalties, including loss of real estate license.

Best Practices for Property Managers

• Tenant Selection Criteria:
    - Property managers can utilize uniform criteria such as:
      * Credit score
      * Income
      * Employment proof
      * History of evictions or bankruptcies
      * References.

Equal Credit Opportunity Act (ECOA)

• Overview
    - ECOA prohibits credit discrimination based on:
      * Race
      * Color
      * Religion
      * National origin
      * Sex
      * Marital status
      * Age
      * Public assistance status.
• Protections Under ECOA:
    - Applies to organizations extending credit, including banks and credit unions.
    - Property managers must not discriminate based on an applicant's source of income.

Example Scenario: Property Manager Violation

• Scenario: Property manager Jamie assesses an application:
    - Applicant lists alimony and part-time job income.
    - Jamie's refusal based on concerns about income reliability is discriminatory.
    - Conclusion: Jamie violates ECOA by denying qualified applicants based on income sources.

Uniform Residential Landlord and Tenant Act (URLTA)

• Overview
    - Established in 1972 by the National Conference of Commissioners on Uniform State Laws to regulate landlord and tenant interactions.
• Key Responsibilities Under URLTA:
    - Property managers must:
      * Comply with building health and safety codes.
      * Ensure property habitability (running water, hot water).
    - Tenant responsibilities include:
      * Not damaging property.
      * Proper waste disposal.
      * Respecting neighbors’ enjoyment of the property.

Georgia Landlord Tenant Law

• Overview
    - Title 44, chapter 7 of the Georgia Code details landlord-tenant legislation within Georgia.
    - Covers multiple responsibilities including:
      * Lease and rental agreements.
      * Security deposits and payment of rent.
      * Eviction processes and property maintenance responsibilities.
• Reciprocal Obligations:
    - Landlords must maintain the property and handle substantial improvements consented to by tenants.