Fair HousingLegalDiscriminationComplianceFederal Law
Fair Housing Compliance for Property Owners
Fair Housing Act Overview
The Fair Housing Act (FHA) is federal law that prohibits discrimination in housing based on protected characteristics. Violations can result in:
Civil lawsuits and damages
Fines up to $100,000+
Loss of rental licenses
Criminal penalties (severe cases)
Damage to reputation
Bottom Line: Fair housing compliance is not optional - it's the law.
Protected Classes Under Federal Law
The Seven Protected Classes
You CANNOT discriminate based on:
1. Race
Any race or ethnicity
Cannot ask about race on applications
Cannot steer to certain neighborhoods
Cannot use race-based criteria
2. Color
Skin color or complexion
Related but separate from race
3. National Origin
Country of birth
Ancestry or ethnic background
Cannot require citizenship (with exceptions)
Cannot discriminate based on accent or language
4. Religion
Any religious belief or practice
Atheism or no religion
Cannot ask about religious practices
Must accommodate reasonable religious requests
5. Sex (Gender)
Male or female
Pregnancy status
Gender identity
Sexual orientation (recent interpretations)
6. Familial Status
Families with children under 18
Pregnant women
Those obtaining custody
Cannot have "adults only" policies (except 55+ housing)
7. Disability
Physical or mental impairment
Past disability
Perceived disability
Association with disabled person
Must provide reasonable accommodations
State & Local Protected Classes
Many states/cities add protections for:
Source of income (including BAH, Section 8)
Marital status
Sexual orientation (explicitly)
Gender identity/expression
Military status
Age (beyond familial status)
Immigration status
Know your state and local laws!
Military Status & Fair Housing
Federal Protection
Servicemembers Civil Relief Act (SCRA):
Protects active-duty rights
Does NOT prohibit discrimination in initial rental
Does NOT make military a protected class federally
State-Level Protection
Some states explicitly protect military status:
Cannot refuse to rent based on military service
Cannot charge different rent to military
Cannot apply different terms
Note: Even without explicit protection, refusing to rent to military may violate other protections (e.g., discrimination based on transient nature could be familial status discrimination).
Best Practice
Treat military and civilian applicants equally
Don't charge different rent due to SCRA risk
Don't require different lease terms
Don't ask military status until after application
Source of Income Protection
Growing number of jurisdictions prohibit discrimination based on:
BAH (Basic Allowance for Housing)
VA benefits
Military retirement
Section 8 housing vouchers
Other government assistance
If your jurisdiction has source of income protection:
What Fair Housing Prohibits
Advertising & Marketing
Cannot:
❌ "No children"
❌ "Perfect for single professional"
❌ "Quiet, adult building"
❌ "Near churches" (religious preference)
❌ "Great for traditional families"
❌ "Walking distance to AA meetings"
Can:
✅ "Near military base" (proximity, not preference)
✅ "Great for families" (not excluding others)
✅ "Near schools and parks"
✅ "Wheelchair accessible" (factual feature)
✅ "Pet-friendly"
Application & Screening
Cannot:
❌ Ask about race, religion, national origin
❌ Ask if applicant has children
❌ Ask about disabilities
❌ Ask about pregnancy
❌ Different criteria for protected classes
❌ Selectively enforce policies
Can:
✅ Criminal background check (with limitations)
✅ Credit check (consistent criteria)
✅ Income verification (3x rent typical)
✅ Rental history verification
✅ Employment verification
Lease Terms & Conditions
Cannot:
Reasonable Accommodations & Modifications
Reasonable Accommodations
Definition: Changes to rules, policies, or services
Examples:
Service animal in "no pets" property
Assigned parking spot near entrance
Allowing caregiver to visit beyond guest policy
Rent payment schedule adjustment
Requirements:
Must be disability-related
Must be reasonable (not fundamental alteration)
Must allow disabled person to use/enjoy property
Landlord cannot charge extra fees
Process:
Tenant requests accommodation
Landlord may ask for documentation of disability-related need
Landlord evaluates reasonableness
Grant or propose alternative accommodation
Reasonable Modifications
Definition: Physical changes to property
Examples:
Installing grab bars in bathroom
Widening doorways for wheelchair
Installing ramp
Lowering countertops
Requirements:
Tenant pays for modification
Compliance Best Practices
Application Process
1. Consistent Criteria
Write down qualification requirements
Apply same criteria to all applicants
Document decisions
First qualified applicant gets property
2. Objective Standards
Income: 3x monthly rent
Credit: 620+ score
Rental history: No recent evictions
Criminal: No violent crimes within X years
Apply to EVERYONE equally
3. Documentation
Keep all applications (accepted and rejected)
Document reason for each denial
Use objective criteria
Retain for 2-3 years
Advertising Guidelines
Focus On:
Property features
Location benefits
Amenities
Accessibility features
Avoid:
References to ideal tenant type
Protected class preferences
Exclusionary language
Discriminatory images
Showing Property
:
Common Fair Housing Violations
Unintentional Discrimination
Scenario: "I only rent to professionals"
Issue: May discriminate against families with children (familial status)
Solution: Focus on income and rental history, not occupation
Scenario: "I need someone quiet, no kids"
Issue: Direct familial status discrimination
Solution: "I enforce quiet hours per lease"
Scenario: "This neighborhood is great for young couples"
Issue: May discourage families, older adults
Solution: "This neighborhood has parks, shopping, and dining"
Disparate Impact
Definition: Policy that seems neutral but disproportionately affects protected class
Example: "No vouchers accepted"
May disproportionately affect minorities
Many jurisdictions now prohibit source of income discrimination
Example: "Must earn $100K annually"
If far exceeds reasonable qualification (3x rent)
May unnecessarily exclude protected groups
Steering
: Directing people toward or away from certain areas
Fair Housing Red Flags
In Advertising:
❌ Preferences for certain groups
❌ "No..." statements (except pets, smoking)
❌ Images showing only one demographic
In Screening:
❌ Inconsistent application of criteria
❌ Undocumented rejection reasons
❌ Different questions for different applicants
❌ Assumptions based on appearance
In Tenancy:
❌ Selective enforcement of rules
❌ Harassment or hostile environment
❌ Refusing reasonable accommodations
❌ Retaliating for fair housing complaints
When in Doubt: Consult a fair housing attorney
Filing Complaints & Enforcement
Who Enforces Fair Housing?
HUD (Department of Housing & Urban Development):
Investigates federal violations
Can impose fines
Can refer for prosecution
State/Local Fair Housing Agencies:
Investigate state/local violations
May have additional protected classes
Often work with HUD
Private Lawsuits:
Tenants can sue directly
Can recover damages
Can get injunctive relief
Complaint Process
Tenant Files Complaint (within 1-2 years)
→ Investigation (HUD or agency)
→ Determination (reasonable cause or not)
→ Conciliation or Hearing
→ Remedies (if violation found)
Penalties for Violations
First Violation: Up to $21,000+
Second Violation (within 5 years): Up to $55,000+
Three+ Violations (within 7 years): Up to $110,000+
Plus: Actual damages, attorney fees, injunctive relief