Fair Housing Act

Title VIII of the Civil Rights Act of 1968 is also known as the Fair Housing Act. The Act was enacted by Congress on April 11, 1968.

The Fair Housing Act prohibits discrimination during the sale, financing, or rental of dwellings as well as in other housing related activities on the basis of:

• Race;
• Color;
• Religion;
• Sex;
• Disability;
• Familial status (which includes pregnancy and households with children under 18); and
• National origin.

What is the Objective of Fair Housing?

The objective of fair housing is to ensure there are no discriminatory practices in real estate, whether an individual is buying or renting. When the Fair Housing Act was passed in 1968, its main objective was to prohibit race discrimination in the rental or sale of housing.

Prohibiting discrimination includes prohibiting the dissemination of false information regarding the availability of housing. This may include inaccurately providing information that no housing is available or steering individuals who are seeking to purchase into certain neighborhoods based on their race.

This has since evolved into an attempt to eliminate discrimination based upon:

• Disability;
• Religion; and
• Familial status.

What is Housing Discrimination?

A landlord is permitted to deny an individual or individuals housing on the basis of a legitimate business reason. These reasons may include:

• Income;
• Credit history;
• References from past landlords; and
• Past behaviors, such as causing property damage.

Housing discrimination occurs when an individual is denied housing due to their being a member of a protected class and not for a legitimate business reason. Protected class characteristics include:

• Race;
• National origin;
• Color;
• Religion;
• Sex;
• Age;
• Disability, whether physical or mental; and
• Pregnancy.

When Does the Fair Housing Act Apply?

The Fair Housing Act applies in certain circumstances, including:

• Selling or renting real estate;
• Advertising rentals or homes for sale and encouraging or discouraging specific individuals from living in a certain neighborhood, which is known as steering;
• Providing financial assistance for renters or buyers of real estate;
• Brokering or appraising real estate;
• Participating in real estate organizations;
• Intimidating, coercing, or threatening individuals with regard to the purchase, rental, or use of real property; and
• Interfering with an individual’s right of enjoyment and use of housing rights based on a discriminatory reason.

What Can I Do if Someone Has Committed a Fair Housing Violation Against Me?

Individuals who believe they have been the victim of an illegal housing practice may file a complaint with the Department of Housing and Urban Development (HUD) or they may be able to file a civil lawsuit in a state court or a federal court.

Any individual can file a complaint with HUD at no cost to them. Claims may be filed by mail, telephone, or online. After HUD receives the initial claim information, an intake specialist will contact the individual who filed the complaint in order to conduct an interview.

HUD may subsequently require the alleged fair housing violator to submit an answer to the formal complaint. HUD will then investigate the complaint.

Following the investigation, HUD will either determine that they have found enough evidence of a fair housing violation or it will make a no cause determination. If a no cause determination is made, the complainant may contest by filing a lawsuit.

Are There Any Exceptions to the Fair Housing Act?

Yes, there are several important exceptions to the Fair Housing Act, including:

• Single family homes, so long as:
  • the home is also sold or rented by the owner;
  • the owner does not own more than three of this type of home at one time;
  • the advertising for the rental or property for sale was not discriminatory; and
  • the owner did not use a broker or a real estate agent;
• Rooms or units in a building with a maximum or four units, so long as the owner lives in of the units;
• Rooms or units directly or indirectly owned by a religious organization, so long as preference is only given on the basis of that membership and membership in that religion is not restricted by:
  • race;
  • color; or
  • Nationality; and
• Rooms or units owned by a private organization for non-commercial use, so long as preference is only given on the basis of membership and membership in that organization is not restricted by:
  • race;
  • color; or
  • nationality.

What Mortgage Relief Options Are Available for FHA Loans?

The COVID-19 relief programs for FHA loans have ended. The federal forbearance program for pandemic hardship closed in May 2023. The federal foreclosure and eviction moratoriums expired in July 2021. There is no national foreclosure moratorium in place today.

If you have an FHA loan and are falling behind on payments, you may still qualify for help. FHA offers several loss mitigation options through your loan servicer. These are part of a permanent program, not the pandemic-era plans that have since been phased out.

Common FHA loss mitigation options include:

• Repayment plans, where missed payments are added to your regular monthly bill over time;
• Forbearance, which lets you pause or reduce payments for a set period;
• Loan modifications, which change the terms of your mortgage to lower the monthly payment;
• Partial claims, a zero-interest junior lien from HUD that covers missed payments and is repaid when you sell or pay off the home; and
• Short sales or deeds in lieu of foreclosure, if keeping the home is no longer possible.

To request help, contact your mortgage servicer as soon as you fall behind. The servicer must review your situation and offer the options you qualify for. State and local programs may also be available, depending on where you live.

If a lender or servicer treats you unfairly during this process because of your race, color, religion, sex, disability, familial status, or national origin, that may be a Fair Housing Act violation. A real estate attorney can review your situation and help you decide what to do next.

Should I Seek Advice from An Attorney?

Yes, it is essential to have the assistance of a real estate attorney for any issues you may have involving the Fair Housing Act. If you believe you were the victim of discrimination, your attorney can review your situation, assist you in filing a complaint or a lawsuit, and represent you in court.

If you are an owner or a landlord and you are concerned about conforming to the provisions of the Fair Housing Act, an attorney can help. Your attorney can also provide advice regarding state and local housing discrimination laws, which can be just as complex.