What You Should Know About the Federal Fair Housing Act
The Land Up Learning Series
There are many ways a person finds themselves immersed in the world of real estate: buying a home, working as an agent, running your AirBnB, and the list goes on and on.
First enacted in 1968 by federal law, the Fair Housing Act prohibits discrimination of protected classes in the sale, rental, and financing of housing. While state and local governments can add to these laws, they can’t reduce them.
Regardless of if you’re a renter, landlord, broker, or beyond, it’s important to understand this Act to recognize and avoid potential discrimination.
What is the Fair Housing Act?
Backed by years of unfair treatment of renters and buyers, The Federal Fair Housing Act of 1968 - or Title VIII of the Civil Rights Act - was passed to bring an end to discrimination in housing, and to ensure everyone has equal access to housing of their choice.
Fair housing laws apply to individuals that play a part in the access to housing throughout the real estate process. This includes landlords, real estate brokers and agents, lenders, homeowner associations, etc. While exemptions do exist, these laws address many situations that may occur, from allowing service animals to advertising a property.
While it initially protected individuals and families in the cases of religion, nationality, race, and color, the Fair Housing Act was amended in 1974, 1988, and 2017 to include additional classes.
Federally protected classes today are:
Color
Familial status (including pregnancy)
National origin
Physical or mental disability
Race
Religion
Sex
Who Enforces the Fair Housing Act?
When the Fair Housing Act was established in 1968, enforcement was delegated to the U.S. Department of Housing and Urban Development - commonly know as “HUD”. The responsibility now lays within their Office of Fair Housing and Equal Opportunity. Specifically in the Lone Star State, the act is enforced by the Texas Workforce Commission (TWC).
Keep in mind that state and local governments may expand on the Fair Housing Act, so it is helpful to stay updated on your local laws to fully understand how they apply in your area. Within their own laws, some states have expanded on their protected classes to include:
Age
Citizenship
Criminal history
Gender identity or expression
Genetic information
Sexual orientation
Source of income
Veteran or military status
Typically, a claim may be filed up to one year after the event. The violator may face civil penalties up to $16,000, and up to $65,000 for repeated offenses. If and when the Department of Justice gets involved, this number continues to rise up to $100,000 .
What isn’t Covered by the Fair Housing Act?
An important thing to note about the Federal Fair Housing Act does not prohibit everything in the real estate world. The Act only applies to residential properties - not commercial or industrial properties - and in a broad range of scenarios. Plus, some exemptions do exist.
HUD outlines types of housing not covered by the federal fair housing act, being owner-occupied buildings with four or less units, single-family houses sold or rented by the owner without an agent, and housing operated by religious organizations or private clubs limiting occupancy to their members.
The Fair Housing Act Continues to Change
Innovation is crucial in real estate, as well as in the laws that mold the industry. The Fair Housing Act has come a long way since the 1960’s, and it continues to be renewed with additional classifications, scenarios, and more.
The bottom line? Creating equitable housing in an ongoing process for everyone. If you ever experience, witness, or suspect discrimination, be sure to document your findings and share what you know with the local enforcing agency.
There is a lot to know about the Fair Housing Act, and we’ve only scratched the surface! Luckily, there are many resources available and people who are ready to help. Check out additional information on the HUD’s website, and be sure to research your local laws.