FFH laws
The goals of the Federal Fair Housing laws are to create a single, unbiased housing market and to ensure that all home buyers and renters have the opportunity to buy or rent housing in the area of their choice.
Federal Fair Housing laws began with the Civil Rights Act of 1866, which was passed right after the Civil War. This act prohibits discrimination in the housing market based on race, without exception. Fair Housing laws have since been extended to include all areas of discrimination. We will examine all important phases of Fair Housing legislation.
Fair Housing Legislation
The Civil Rights Act of 1866: This law prohibits any type of discrimination based on race. This act and the Civil Rights Act of 1968 are especially important in the area of fair housing as it pertains to real estate. The Civil Rights Act of 1866 extended the normal rights of citizenship to persons hitherto deprived of them, specifically, the recently emancipated blacks. These rights included, notably, the right to inherit, purchase, lease, hold, sell, and convey real and personal property. This act served as the basis for the eventual prohibition of racially motivated refusals to sell or rent property, in that it prohibits discrimination on the basis of race in areas pertaining to real estate. Passage of the fourteenth amendment to the constitution in 1868 specifically guaranteed full citizenship and civil rights to African Americans.
Executive Order No. 11063: This order was issued by President Kennedy on November 20, 1962, because of urging by the United States Commission on Civil Rights that housing was the only commodity in America which was not available on equal terms to anyone who could afford it. The order banned discrimination in all federal departments – for example, discrimination in housing funded by FHA or VA loans. The executive order prohibited discrimination in the sale, rental, or use of all residential property owned, operated, or financed by the federal government.
The Civil Rights Act of 1964: The 1964 law specified that discrimination against individuals based upon race, color, religion, sex, or national origin were prohibited. In addition to banning discrimination in voting rights, the Civil Rights Act of 1964 covered discrimination in public accommodations, facilities, and education along with equal employment opportunity. This Act also reinforced Executive Order No. 11063, prohibiting discrimination in any program receiving federal financial assistance, such as federally funded housing programs.
The Fair Housing Act of 1968: The 1968 Civil Rights Act, containing within its provisions the Federal Fair Housing Act, Title VIII, specifically inaugurated a national policy of fair housing. It forbade discrimination in the sale, rental, and financing of housing, and, in the provision of brokerage services, on the basis of race, color, religion, or nationality. It clearly proscribed the following practices:
Refusing to rent, lease, or sell property, or to negotiate the sale of same on the basis of discriminatory considerations.
Varying the terms of property for lease or sale, or the nature of brokerage services provided, for discriminatory reasons.
Advertising in such a way as to exclude minorities from consideration as tenants or buyers.
Misleading minority customers as to the availability of certain properties for sale or lease.
Refusing home loans or adjusting their conditions on a discriminatory basis.
Restricting minority membership or participation in multiple listing services (MLSs), or other professional brokering groups or associations.
Jones vs. Mayer Supreme Court Decision of 1968: This case involved the refusal of a private residential property owner to sell their home to an African American man, which was ruled as a violation of the Fair Housing Act.
The Eight Protected Classes
Familial status
Race
Color
Sex: Gender/Sexual Preference
Handicapped
Religion
National origin
The E & O represent equal opportunity, which is to give everyone the equal right and opportunity to live where they want to live.
There are certain words, phrases, or sentences that almost always mean trouble is on the way – below are just a few:
"I want you to only show my home to [member of protected class]."
"I don't want you to show my home to any [member of protected class]."
"I want an agent who will bring me the right kind of buyer."
"My neighbor said you come from a family just like ours and will do the right thing."
"I can't let my neighbors down."
"We want to sell to good Christian people."
"I won't even look at an offer if I don't know the race [religion, familial status, etc.] of the buyer."
There is only one answer that may lawfully be given by real estate licensees when asked to discuss protected classes. That answer is:
"Under federal law, I am prohibited from discussing any of the protected classes."
With this in mind, how can these situations be handled?
Consumer Question:
"I want you only to show my home to ___"
"I don't want you to show my home to ___"
1972 Amendment to The Fair Housing Act: Congress amended Title VIII to institute the use of an equal opportunity poster, which is required to be displayed in all sales and rental offices in a conspicuous location.
In 1974, The Housing and Community Development Act adds sex as a protected class.
1988 Amendment to The Fair Housing Act: As amended, it prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex/gender, handicap, or familial status (including pregnant women; children under the age of 18 living with parents or legal custodians; and people securing custody of children under the age of 18). It also provides for more authority in the enforcement of the Civil Rights Act by establishing the maximum fines that can be imposed for discrimination.
Familial status is defined as one or more individuals who have not reached the age of 18 being domiciled with a parent or another person who has or is seeking legal custody. It also includes a person who is pregnant. Unless the property meets the standards for exemption as "housing for older persons," all properties must be made available under the same terms and conditions as are available to all other persons.
Housing for older persons: while the Fair Housing Act protects families with children, certain properties can be restricted for occupancy by the elderly. Housing occupied solely by persons aged 62 or older – or 80% of housing is occupied by at least one person 55 years or older – is exempt from familial status protection.
Handicap or Disability is defined as a physical or mental impairment – or having a history of such impairment – that substantially limits one or more of a person's major life activities. It does NOT include the current illegal use of or addiction to a controlled substance. However, a person in an addiction recovery program is protected. Individuals who have AIDS are protected under the handicap classification.
A person who has a history of mental illness but is recovered, is still protected under the handicapped class.
Changes to Rental Unit – Handicap: A tenant may make changes to their unit to accommodate their handicap. However, they must do so at their own expense and must put the unit back in its original condition when vacating.
A family may purchase a multi-million-dollar mansion or an efficiency condominium and still be within the jurisdiction of the fair housing laws. The size, location, and price of the property does not affect whether or not it is purchased by a resident owner will be covered under the fair housing laws. The determining factor is the use of the residential property as a family dwelling.
It is therefore the intent of the fair housing laws to empower buyers to choose any home available for sale that is within their financial means. It is also the intent of the fair housing laws to prohibit sellers and others from attempting to deny buyers their choice based upon their membership in a protected class.
Further, it is also the intent of the laws to ensure that there will be no coercion of individuals, nor will there be allowed any efforts to fraudulently declare properties unavailable to individuals based on their membership in one or more of the protected classes.
Citizenship Status - citizenship status may be closely tied to national origin or religious discrimination. Licensees must apply non-discriminatory screening procedures to all persons regardless of immigration status.
The following agencies are responsible for the enforcement of the Federal Fair Housing Laws:
Office of Equal Opportunity
Department of Housing and Urban Development (for complaints under the Civil Rights Act of 1968).
Federal Court (for complaints under the Civil Rights Act of 1866).
Suit can be filed in state court under substantially similar state fair housing laws.
NOTE: Violation of the Fair Housing Laws is considered a misdemeanor unless violence is involved.
Exemptions to the Fair Housing Act
There are some noteworthy exemptions to the fair housing laws that should be known to all licensees. However, because of the 1866 law, the exemptions do not apply when race is involved.
Exemptions to the fair housing laws include:
The following words, phrases, symbols, and forms typify those most often used in residential real estate advertising to convey either overt or tacit discriminatory preferences or limitations. In considering a complaint under the Fair Housing Act, HUD will normally consider the use of these and comparable words, phrases, symbols, and forms to indicate a possible violation of the Act, and to establish a need for further proceedings on the complaint, if it is apparent from the context of the usage that discrimination within the meaning of the Act is likely to result.
Words descriptive of dwelling, landlord, and tenants: "White private home," "Jewish home," "Hispanic residence," "Adult building."
Words indicative of race, color, religion, sex, handicap, familial status, or national origin:
Race: Black, Caucasian, Asian, Native American.
Color: White, Black, Brown.
Religion: Names of any religions or words indicating a specific religion.
National origin: Mexican American, Puerto Rican, Philippine, Polish, Hungarian, Irish, Italian, Chicano, African, Hispanic, Chinese, Indian, Latino.
Sex: The exclusive use of words in advertisements, including those involving the rental of housing being advertised as available to persons of only one sex and not the other, restricts the sharing of living areas in housing.
Handicap: Crippled, blind, deaf, mentally ill, retarded, impaired, handicapped, physically accessible housing in advertising of dwellings.
Familial status: Adults, children, singles, mature persons. This does not restrict advertisements of dwellings which are intended and operated for occupancy by older persons, and which constitute "housing for older persons" as defined in the Act.
Catch words: Words and phrases used in a discriminatory context should be avoided – e.g., "restricted," "exclusive," "private," "integrated," "traditional," "board approval," or "membership approval."
Symbols or logotypes: Symbols or logotypes which imply or suggest race, color, religion, sex, handicap, familial status, or national origin.
Colloquialisms: Words or phrases used regionally or locally which imply or suggest race, color, religion, sex, handicap, familial status, or national origin.
Directions to real estate for sale or rent (use of maps or written instructions). Directions can imply a discriminatory preference, limitation, or exclusion. For example, references to a real estate location made in terms of racial or national origin significant landmarks. Specific directions that make reference to a racial or national-origin significant area may indicate a religious preference.
Area (location) description: Names of facilities which cater to a particular racial, national origin, or religious group, such as country club or private school designations, or names of facilities which are used exclusively by one sex, may indicate a preference.
Selective Use of Advertising Media or Content
The selective use of advertising media or content when particular combinations are used exclusively toward various housing developments or sites can lead to discriminatory results and may indicate a violation of the Fair Housing Act. For example, the use of English language media catering to the majority population in an