April 2006
Since April is Fair Housing Month, I wondered if writing about this topic would be information overload for some consumers. After all, many publications are likely to make it a priority. Then I remembered hurricanes Rita and Katrina…
Months after the storms devastated portions of Louisiana, Mississippi, Alabama, and Texas, evacuees displaced by Rita and Katrina are still trying to put their lives back together. Texas became the temporary home for hundreds of thousands of hurricane victims. As a result, the number of people looking to rent or buy property throughout the state has dramatically increased. Whether you're a buyer or prospective tenant, seller or landlord, it's important to understand the laws regarding fair housing.
So let's review the basics of the Fair Housing Act, originally Title VIII of the Civil Rights Act of 1968. This law prohibits discrimination in the sale, rental or financing of a property based on race, sex, color, religion, handicap, familial status or national origin. Each of us falls into one or more of these categories. In other words, it's as much of a violation of fair-housing laws to discriminate against a white male as it is a Hispanic female.
When you think of fair housing, do you automatically envision a landlord or property owner refusing to rent or sell to an individual based on one of the seven classes mentioned above? Well in the case of fair housing, laws against discrimination include much more. In addition to refusing to rent or sell a house based on these protective classes, other violations include setting different terms for the sale or rental of a property, providing different housing services or facilities, and falsely denying housing is available.
The Fair Housing Act also protects individuals during the mortgage loan process, making it illegal to refuse a loan or information regarding loans, or to set different terms or conditions based on race, sex, color, religion, handicap, family status or national origin. Furthermore if you are disabled, a property owner must accommodate your disability by making reasonable modifications to the property or allowing you to do so yourself. It's important to mention that if you fall into this category, you may be financially responsible for these modifications and may also be required to return the property to its original condition upon moving out.
Let's look at a couple of scenarios and determine if the situations violate fair-housing laws. You might be surprised at the results.
Scenario 1: A divorced woman with two young children finds a temporary residence, just blocks from her new job. The apartment manager informs the mother that while she and her children are welcome, he requires a higher deposit because her children are under the age of five. Violation or not?
Scenario 2: A seller refuses to sell her home to an individual who obviously has a problem with alcohol. The seller explains to her listing agent that she doesn't think it would be good for the neighborhood. Violation or not?
Scenario 3: In an effort to diversify an established neighborhood, Mrs. Smith is determined to rent her home out to a minority couple. Violation or not?
Each situation outlined above may potentially violate fair-housing laws. Yes, alcoholism is considered a disability. Surprised? While fair-housing laws are extensive, there are some exceptions to their protections. Smokers and sex offenders are not considered a protected class. If you were denied housing due to the nature of your profession, you have no legal recourse under the Fair Housing Act. The thing to remember here is that as long as you are not singled out based on your status as a member of a protected class, then you are not a victim of a fair-housing violation. Whether you're the property owner or the tenant, understanding these laws will protect you and your interests.
Fair Housing Month is more than just ensuring the housing industry does not discriminate against a diverse marketplace. It's also about providing equal and affordable housing opportunities and promoting homeownership to underserved markets. National homeownership numbers for some minorities are dismal. According to the U.S. Census Bureau, the homeownership rate for whites in 2004 was 72.8%, while blacks and Hispanics are at 49.1% and 48.1% respectively. Texas ranks 42nd among U.S. states, with an overall homeownership rate of 68.5%. As a state, we have lagged behind the national average for the last two decades. Fair Housing Month is a perfect time to shine a spotlight on the homeownership gap and work to do something about it.
Texas REALTORS® are dedicated to ensuring your rights are protected and to promoting homeownership throughout the state. REALTORS® adhere to a strict code of ethics, which goes above and beyond the fair-housing mandate. Texas REALTORS® are also committed to closing the homeownership gap. Many participate in statewide housing opportunity initiatives, such as United Texas — a partnership program between the Texas Association of REALTORS®, the Texas Veterans Land Board, and the Texas Department of Housing and Community Affairs. This initiative promotes low-cost financing, assistance programs, and a host of other options to make housing more affordable and available to all buyers.
If you think your fair-housing rights have been violated, contact the Department of Housing and Urban Development (HUD) and fill out a Housing Discrimination Complaint form. You can access this form by visiting HUD's Web site or calling an office near you.
All of us are guaranteed the fundamental right to fair housing. We have the right to live where we want and to own a home. If someone denies us that right based on race, color, national origin, religion, sex, familial status, or handicap, they are breaking the law. This April, celebrate your right to own and use property — free from discrimination.
