We just attended a fair housingseminar our brokerage sponsored. It reminded us that we have not talked about this on Real Estate Investing 101. Our bad.
The fair housing act was signed into law by President Johnson back in 1968 and has been amended a few times since. Fundamentally, the law prohibits discrimination against people buying, selling, renting and financing housing based on a number of criteria. We will be focusing on the rental side of the law in Arizona, however, Fair Housing is a Federal Act and applies to all States.
The Arizona Attorney General's office oversees violations to the Fair Housing Act. Below is a summary of the Act and some of the considerations a landlord needs to understand.
When based on race, color, sex, religion, national origin, familial status or disability, the following actions by housing providers or professionals are prohibited under the Fair Housing Act:
- Refusing to show, rent or sell a house, lot, or apartment.
- Refusing to negotiate the rental or sale of a house, lot, or apartment.
- Charging more to buy or rent a house, lot, or apartment.
- Requesting a larger security deposit.
- Telling a person that the property is no longer for sale or rent when it really is.
- Advertising that a certain type of person is wanted to sell or rent the property.
- Denying services that are available to others.
- Insisting that a family live in a designated area.
- Denying access or use of the facility or service that is normally available with occupancy of a property.
- Telling owners or renters to move because the neighborhood is being integrated by minorities.
- Suggesting that a person move to a specific area or property.
- Refusing to permit reasonable accommodations for assistive aides, assistive animals, parking, or physical modifications to existing properties.
- Failing or refusing to provide wheelchair accessible housing in new construction of multifamily dwellings (i.e., accessible environmental controls, accessible routes into and through the dwelling, usable bathrooms, etc.).
- Engaging in retaliation or intimidation against a person who complains about housing discrimination.
- Harassment such as racial and sexual slurs or threats.
As you can see, there are a number of ways a landlord can violate fair housing and this list is just the beginning. A.G. Goddard says most violation are due to ignorance of the law or simply not understanding its applications. We recommend landlords take continuing education classes to better understand the law and learn about specific case studies.
In Arizona, housing providers who would like to attend a free training on the Fair Housing Act and their responsibilities and rights under the law may contact Joy Johnson, Fair Housing and Technical Assistance Coordinator, (602) 771-1026. Other States offer similar courses for your edification.
Failure to comply with fair housing laws can come with stiff penalties. Below is a partial list:
- Civil Action fines up to $11,500 for the first offense and up to $50,000 for repeated offenses
- Unlimited punitive damages if the case proceeds to federal court
- Compensation for actual damages, including humiliation, mental distress, and loss of housing opportunities.
We've included a link to the HUD web site page on the Fair Housing Act for your reading pleasure.
Happy studying...
Ron Urban & Gene Urban
The Urban Team at Realty Executives
602-234-5777
Don't forget to take a look at our sister site, Urban Life, where we focus on downtown and central Phoenix.
The above information is provided as educational and does not constitute legal advise. Legal questions should always be addressed to a qualified legal professional.
