What is the Fair Housing Act?
The Fair Housing Act, which was enacted as Title VIII of the Civil Rights Act of 1968, prevents discrimination during the home buying process on the basis of race, national origin, color of skin, ethnicity, religion, gender, familial status, or disability. In 2017, a federal judge ruled that sexual orientation and gender identity were also protected classes under the Fair Housing Act.
Fair Housing Act Definition
The Fair Housing Act, which was enacted as Title VIII of the Civil Rights Act of 1968, prevents discrimination during the home buying process on the basis of race, national origin, color of skin, ethnicity, religion, gender, familial status, or disability. In 2017, a federal judge ruled that sexual orientation and gender identity were also protected classes under the Fair Housing Act.
While all multifamily investors and real estate developers are obliged to follow the law, it is especially important to follow Fair Housing Act rules if you are attempting to finance properties with HUD multifamily loans, such as HUD 221(d)(4) loans, HUD 223(f) loans, HUD 232 loans, or HUD 223(a)(7) loans.
To learn more about the HUD 223a7 refinance program, fill out the form below to speak to a HUD/FHA loan expert.
Related Questions
What is the purpose of the Fair Housing Act?
The Fair Housing Act, which was enacted as Title VIII of the Civil Rights Act of 1968, prevents discrimination during the home buying process on the basis of race, national origin, color of skin, ethnicity, religion, gender, familial status, or disability. In 2017, a federal judge ruled that sexual orientation and gender identity were also protected classes under the Fair Housing Act. The Fair Housing Act is enforced by HUD’s Office of Fair Housing and Equal Opportunity (FHEO).
The purpose of the Fair Housing Act is to prevent discrimination during the home buying process on the basis of race, national origin, color of skin, ethnicity, religion, gender, familial status, or disability. It also protects classes such as sexual orientation and gender identity.
What are the protected classes under the Fair Housing Act?
The Fair Housing Act, which was enacted as Title VIII of the Civil Rights Act of 1968, prevents discrimination during the home buying process on the basis of race, national origin, color of skin, ethnicity, religion, gender, familial status, or disability. In 2017, a federal judge ruled that sexual orientation and gender identity were also protected classes under the Fair Housing Act. This is enforced by HUD’s Office of Fair Housing and Equal Opportunity (FHEO).
Source 1 Source 2What are the penalties for violating the Fair Housing Act?
Violations of the Fair Housing Act can result in civil penalties of up to $16,000 for a first violation and up to $65,000 for subsequent violations. In addition, violators may be subject to criminal penalties of up to $250,000 and up to one year in prison. The Department of Justice may also bring a civil action to enforce the Fair Housing Act and may seek monetary damages and civil penalties. Source
What are the exceptions to the Fair Housing Act?
The Fair Housing Act does not apply to owner-occupied buildings with fewer than four units, single-family homes sold or rented without the use of a broker, and housing operated by religious organizations and private clubs that limit occupancy to members. Additionally, the Fair Housing Act does not apply to the rental of rooms in a private home, as long as the owner does not own more than three such rooms.
Source: HUD - Fair Housing Act Overview
What are the responsibilities of landlords under the Fair Housing Act?
Under the Fair Housing Act, landlords are responsible for ensuring that their communities are not discriminating against tenants based on race, national origin, color of skin, ethnicity, religion, gender, familial status, disability, sexual orientation, gender identity, or gender expression. This includes refusing to rent, refusing to negotiate rental rates, setting different terms or rental rates, providing different information about housing availability, and providing different levels of service.
Additionally, landlords are not allowed to take any action to interfere with, threaten, or intimidate any renter or prospective tenant filing a Fair Housing Act-related complaint.
For more information, please see Rentec Direct's blog post on the Fair Housing Act and HUD Loans' blog post on Sexual Orientation, Gender Identity Discrimination in Housing.
What are the responsibilities of tenants under the Fair Housing Act?
Under the Fair Housing Act, tenants are responsible for following the terms of their lease agreement and for not discriminating against other tenants or prospective tenants based on race, national origin, color of skin, ethnicity, religion, gender, familial status, or disability. In 2017, a federal judge ruled that sexual orientation and gender identity were also protected classes under the Fair Housing Act.
All tenants should understand that it is expressly against the law to take any action to interfere with, threaten, or intimidate any renter or prospective tenant filing a Fair Housing Act-related complaint.
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