fair housing

Introduction to Fair Housing

  • Instructor: Brad Murray
  • Position: Director of Residential Property Management
  • Experience: Started in property management in 2003; previous supervisor for liability claims in insurance.
  • Goal: Understand federal and state fair housing laws in the context of real estate transactions and business operations, learn compliance strategies, and explore best practices for real estate professionals.

Overview of Key Legislation

Civil Rights Acts

  • Civil Rights Act of 1866:

    • Purpose: Granted rights to all persons in America, ensuring the ability for non-whites to transact real estate.
    • Limitation: Lacked enforcement mechanisms, necessitating further legislation.

  • Civil Rights Act of 1964:

    • Comprehensive anti-discrimination measures across various domains, including employment and education.

  • Civil Rights Act of 1968 (Title VIII):

    • Enhancements: Expanded protections based on race, color, religion, and national origin.
    • Supreme Court Decision: "Meyer case" interpreted this act to prohibit all discrimination in real estate transactions without exemptions for race.

  • Fair Housing Amendments Act of 1988:

    • Additions: Established protections for sex, familial status, and disability.

  • Americans with Disabilities Act of 1990:

    • Scope: Primarily commercial, but impacts residential real estate by allowing service and support animals.

Department of Housing and Urban Development (HUD)

  • Functions:
    • Supports homeownership and provides safe, affordable housing.
    • Manages loan programs (FHA and secondary loan market with Fannie and Freddie).
    • Handles discrimination complaints under fair housing laws.

Key Provisions of Fair Housing Law

  • Protected Classes:
    • Race, color, national origin, religion, sex, familial status, and disability.
  • Discrimination Prohibition:
    • Illegal to discriminate in the sale or rental of housing, mortgage assistance, and housing-related activities.

Specific Protections Under Fair Housing Act

Fair Housing Amendments Act of 1988

  • Key Protections:
    1. Availability and Occupancy:
    • No denial of housing based on familial status or disability, or the imposition of different conditions.
    1. Reasonable Accommodations:
    • Required adjustments for conditions (e.g., providing handicapped parking).
    1. Reasonable Modifications:
    • Allowing tenants to modify living spaces as needed (e.g., installing grab bars).

Service and Support Animals

  • Definition & Rights:
    • Service animals (dogs) and support animals (may include various species) facilitate daily living.
    • Landlords may only verify someone's disability and need but cannot ask about specific training for support animals.

Exceptions to Fair Housing Law

  • Housing for Older Persons:
    • Communities serving those 62+ or at least one person 55+ and other residents above 18 years may legally discriminate against children.
  • Specific Religious Organizations:
    • Noncommercial uses may favor members; restrictions must apply only to actual members of the religious organization.

Additional State Protections (Nevada)

  • Additional Classes:

    • Protections for sexual orientation, gender identity/expression, and ancestry.

  • Familial Status:

    • Defined as households with individuals under 18 or pregnant women having legal custody.

Understanding Race vs. Ethnicity

  • Race: Physical characteristics (skin tone, eye color, etc.).
  • Ethnicity: Cultural identity, traditions, and language.

Disability Definition

  • Encompasses any diagnosed physical or mental impairment substantially limiting major life activities.

Prohibited Acts in Fair Housing

  • Blockbusting: Persuading homeowners to sell by fabricating racial demographics of incoming neighbors.
  • Redlining: Mortgage lenders' refusal to underwrite loans in specific areas based on demographics.
  • Steering: Influencing a buyer's choice based on their protected characteristics.

Fair Housing Compliance in Real Estate

Advertising Regulations

  • Focus on property features over targeting specific demographics.
  • Include the fair housing logo and equal opportunity statements.
  • Ensure truthful representation of housing availability and features.

Treatment of Clients

  • Equal treatment for anyone interested in renting or purchasing.
  • Standardized procedures for qualifying applicants.

Documentation and Record Keeping

  • Maintain accurate records of applications and acceptance criteria.
  • Consideration of credit score, rental history, and income must be consistent.

Avoiding Discrimination in Policies

  • Do not impose occupancy limits purely based on the number of bedrooms.
  • Be cautious of criminal record policies to avoid disparate impact.

Enforcement and Penalties

  • Enforcement by HUD:

    • Investigates complaints, conducts testing, and can penalize noncompliance.

  • Penalties:

    • First offense fines can reach $21,039; repeat offenders face higher fines.
    • Nevada laws impose $500 fines for violations.

Fair Lending Practices

  • Laws Involved: Equal Credit Opportunity Act and Fair Housing Act.
  • Prohibitions: Varying credit terms based on prohibited factors.

Importance of Fair Housing in Real Estate

  • Expands market reach and reduces potential penalties from violations.

Conclusion and Final Recommendations

  • Review all related materials, make study aids, and be prepared on the specifics of federal and state fair housing laws and their implications on real estate practices.