Landlord Wouldn't Let Teenager Have Friends Over Without Mother Present

Viable familial status discrimination claims don't have to involve a landlord who refuses to rent to families with children. Often enough, landlords who say they'll rent to families with children but impose certain restrictions on those families also find themselves in fair housing trouble.

A recent example is a Wisconsin landlord who admitted to placing guest restrictions only on tenants with children, according to the U.S. Department of Housing and Urban Development's (HUD) Charge of Discrimination announced today (issued July 12).

After approving a single mother and her 17-year-old son for tenancy and accepting a deposit, he allegedly told the mother she would need to agree to a lease restriction requiring her to be present whenever her son had visitors. The landlord indicated he has had problems in the past with teenagers and also cited a tip from another tenant claiming that the son was a "bad kid" who had been in "trouble."

The mother insisted the tenant's claim is unfounded and suggested the landlord call the police for proof. But the landlord stood firm, leading the mother to file a complaint with HUD alleging Fair Housing Act (FHA) violations. An administrative law judge will now hear the case.

Do you agree with the Charge? Should a landlord ever be allowed to impose restrictions on families with children aimed at controlling teenagers' behavior while in their apartments?

What do you think?

Disabled Army Veteran Wins Battle Over Parking Space

Imagine buying a condo only to discover it doesn't come with a certain promised amenity. Now imagine that this "amenity" was something you needed each day to accommodate a disability.

A New Rochelle, New York man recently found himself in exactly this situation.

When looking to purchase his first-floor unit at the complex, the disabled Army veteran and cancer survivor claims the contractor assured him he would get the one parking space at the premises that's flat enough to accommodate his van and wheelchair lift, according to reporting from The Journal News.

But things turned ugly when another condo owner claimed the space was hers and demanded $10,000 from the man to give it up.

With the help of a disability advocacy group, the man convinced the condo board to give him the parking space as a reasonable accommodation for his disability, a requirement of both the Fair Housing Act (FHA) and county law.

The man finally moved into his condo the parking space he needed, the battle with his neighbor appearing to be over. However, the neighbor is reportedly taking the condo board to court, claiming she needed the space for her disabled mother's visits, and that she deserves $300,000 for her mental anguish.

If you were on the condo board, would you have voted to give the man the accessible space? If he hadn't been promised the space by the contractor, would that affect your decision? Does the neighbor deserve any compensation from the condo board?

What do you think?

Update: Owner and Manager Must Pay for Interracial Dating Policy

You may recall a December 2009 blog post about an owner and manager of an Alabama trailer home who got into fair housing trouble for protesting a white tenant's interracial dating.

After making things difficult for the tenant by disconnecting the water supply during her boyfriend's visit, the owner and manager finally ordered them to leave or "get rid of the black boyfriend." This led the U.S. Department of Housing and Urban Development (HUD) to issue a charge of discrimination based on race and color.

A HUD administrative law judge heard the case and, as HUD announced yesterday, recently issued an order finding the owner and manager liable under the Fair Housing Act (FHA).

Under the order, the owner and manager must pay $39,165 in damages to the tenant and her boyfriend, plus a $10,000 civil penalty. The order also requires the owner and manager to undergo fair housing training before renting any more apartments and then, among other things, provide the local HUD office with copies of any advertisements or leases associated with the property along with statements identifying the reasons for any applicant rejections.

HUD Secretary Commends Efficacy of FHIP Partnerships

In a keynote speech at the National Fair Housing Alliance 20th National Conference ("Fair Housing in a Changing Marketplace") in Washington, D.C. on Monday, June 6, Secretary of the U.S. Department of Housing Preservation and Development (HUD) Shaun Donovan pointed out the importance of partnerships between his agency and Fair Housing Initiatives Program (FHIP) organizations across the United States.

Mr. Donovan revealed that a new study shows that Fair Housing Act (FHA) cases brought by FHIP organizations (or "FHIPs") are seven times more likely to result in findings of discrimination. The study also found that many of the FHIP-referred cases might be too complex for victims to pursue without the partnership, and that FHIP-referred cases with evidence supporting a finding of discrimination are more likely to be processed quickly.

Familial Status Gains Familiar Status in May

Familial status discrimination under the Fair Housing Act (FHA) has dominated fair housing news in May, a month that is known for Mother's Day.

A relative latecomer to the FHA, "familial status" is one of the FHA's seven protected classes and refers to the presence of one or more children under 18 in a household. People who are expecting a child, whether through pregnancy or via the process of adoption, are also protected against familial status discrimination.

Here are important familial status developments that made the news in May:

• The Massachusetts Attorney General's office announced on May 12 that the owner and operator of 26 rental properties has agreed to settle a lawsuit claiming the company illegally discriminated when it attempted to evict a tenant and her small children from their apartment. According to the complaint, a neighbor repeatedly made "unreasonable and unsubstantiated complaints" about noise made by the tenant's children. After an investigation, the Attorney General determined that the tenant had taken steps to address the neighbor's concerns, including enrolling her children in additional daycare and keeping her children out of the apartment for long periods of time on the weekends. But the neighbor allegedly complained about noise even when the children were not in the apartment, and the company simply responded with a notice of eviction. The company has agreed to pay $6,500 to the tenant and the Commonwealth, as well as implement improved training and adjust its best practices to ensure future compliance with the FHA and Massachusetts' fair housing law.
  
  
• The U.S. Department of Housing and Urban Development (HUD) announced on May 20 that it has charged a Las Vegas, Nevada, homeowners association and its management company with discriminating against families with children by limited housing to persons who are 55 and older — without taking the steps the law requires to meet the "55 and older" senior housing exemption.
  
  
• HUD announced on May 26 that it has charged the owner of a five-unit apartment building in Lebanon, New Hampshire, with FHA violations for allegedly refusing to rent one of the building's three apartments to a mother with two children. The owner, who used one of the building's commercial units for his chiropractic office, reportedly dared the mother to "turn him in" after she accused him of familial status discrimination. HUD also claims the owner's receptionist violated the FHA by carrying out the owner's instructions to turn away prospective tenants with children.


• HUD announced today that Ocala, Florida-based USA4SALE Network, Inc., has agreed to pay $15,000 to settle claims that it violated the FHA when it posted ads on its Web sites that discriminated against families with children by stating "No children, No kids." The company has also reportedly agreed to change the way its Web sites filter potentially discriminatory language, plus donate $7,500 to a HUD-funded state fair housing organization and $7,500 to a HUD-approved local fair housing group to cover the cost of the group's future fair housing advertisements.
  

Landlords Settle Vicarious Liability Claims in Sexual Harassment Lawsuit

The U.S. Department of Justice (DOJ) settled claims against two landlord-defendants in connection with a lawsuit that contends the property manager they hired subjected female tenants at their Montgomery, Alabama apartment buildings to unwanted verbal and physical sexual advances, granted and denied tangible housing benefits based on gender, and took adverse action against female tenants when they refused or objected to his advances.

Although the landlords themselves didn't directly discriminate or sexually harass any tenants, the DOJ in its amended complaint argues that the landlords are vicariously liable under the Fair Housing Act (FHA) for the acts of their manager and agent, and also knew or should have known of the manager's discriminatory conduct but "failed to take reasonable preventive or corrective measures."

The partial consent decree, filed on May 12, requires the landlords to pay $33,000 into a victim fund to compensate women and $2,000 in a civil penalty. The landlords, who admitted no liability as part of the settlement, may continue their rental property business as long as they establish and follow non-discriminatory tenancy procedures, undergo fair housing training, and file reports with the government.

Do you believe these landlords got a fair deal? Should they be allowed to continue their rental property business?

What do you think?

Discussing Fair Housing Liability and More in Stark County, Ohio

On April 26, the Stark County Real Estate Investors' Association (SCREIA) held its 2011 Real Estate Investor Showcase in Canton, Ohio, and I had the pleasure of appearing as the keynote speaker.

My presentation, "How to Protect Yourself and Your Property from Risk," based on my book, Every Landlord's Property Protection Guide (Nolo 2008) (paperback | Kindle), offers proactive steps that residential property owners and managers can take to shield themselves and their assets from loss.

It was particularly fitting that the Showcase was held in April, which is Fair Housing Month, since one important way to lower, if not avoid, liability is to become more familiar with housing discrimination laws. For instance, in addition to understanding your rights and obligations under the federal Fair Housing Act (FHA), property owners in Ohio must also learn about the state's similar law, which adds ancestry and military status as protected classes.

Many thanks to Program Chair Marilynn Doll (pictured in this photo collage) for inviting me to speak, and kudos to her and SCREIA for putting together such an informative and successful event.

Listen...

We're getting excited about the upcoming launch of Fair Housing Helper -- aimed at helping multifamily professionals stay in compliance with fair housing laws and avoid costly liability.

Be among the first to check out our first commercial, and come back soon for more information about the launch!

Guest Blogger: LIHTC Owners Risk All by Ignoring Fair Housing Requirements

Today is the 43rd anniversary of the passage of the Fair Housing Act (FHA). To mark the occasion, Fairhousingblog.com is pleased to present our first-ever guest blog entry, by housing consultant Liz Bramlet...

It is so tempting to bury our head in the sand. It seems that the ability to delude ourselves is part of the human condition. We can convince ourselves that just because we want something to be false, it is indeed not true. We are forced, however, to see the downside of this practice when the impact of not facing some inconvenient truth stares us straight in the face. I’ve experienced this phenomenon more times than I care to remember in my own life, and recently, I have been reminded of it during discussions with several low-income housing tax credit (LIHTC) owners and managers.

I have the pleasure of working with many of the best actors in the LIHTC industry. Be they developers, property managers, syndicators or housing finance agency (HFA) officials, I get to spend my professional life with people committed to providing quality housing for the neediest amongst us and to treating everyone with fairness and respect. Unfortunately, I also interact with owners and managers who refuse to see the importance of their fair housing requirements and of how they treat all the applicants and residents at their communities. It is critical that everyone in the industry understand that a violation of fair housing law is a violation of the LIHTC program that can rise to the level of jeopardizing an owner’s tax credits.

In recent months, several people I have spoken with were under the impression that they need not concern themselves with fair housing compliance because they do not receive any mortgage or rental assistance from the Department of Housing and Urban Development (HUD). In many cases, when an owner or a manager believes their LIHTC community is exempt from any fair housing requirements, they are confusing fair housing law with something we in the industry refer to as “Section 504.” Section 504 of the Rehabilitation Act of 1973 states (in part):

No otherwise qualified individual with a disability in the United States, as defined in section 705(20) of this title, shall, solely by reason of her or his disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance or under any program or activity conducted by any Executive agency or by the United States Post Office.

The receipt of HUD dollars is considered federal financial assistance. An owner, including an owner of an LIHTC project, with HOME or CDBG funding, a mortgage insured through FHA’s Section 236 program, including projects that have gone through the decoupling process, project-based rental subsidy through the Section 8 program or comparable programs such as RAP, Rental Supplement and PRAC, etc. must implement everything Section 504 requires of them to protect the rights of persons with disabilities. Owners of LIHTC projects without HUD dollars are not considered to be in receipt of federal financial assistance so are not covered by Section 504, but they must still protect the rights of the disabled in the operation of their property as required by fair housing law.

Those who want to know what the IRS says about fair housing law and its applicability to the LIHTC program should check out the 8823 Audit Guide. The Guide for Completing Form 8823 Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition provides instruction for HFA officials on how and when to issue a IRS Form 8823 notifying the IRS they found an owner to be out of compliance with the LIHTC program. In Chapter 13, the IRS explains an owner’s responsibilities under fair housing law, and how an owner jeopardizes their tax credits when failing to meet these responsibilities. Here is a sample of what the IRS has to say:

LIHC properties are subject to Title VIII of the Civil Rights Act of 1968, which makes it unlawful to discriminate in any aspect relating to the sale or rental of dwellings, in the availability of transactions related to residential real estate, or in the provision of services and facilities in connection therewith because of race, color, religion, sex, disability, familial status, or national origin.

HUD is responsible for enforcing the Fair Housing Act. In so doing, HUD investigates allegations of housing discrimination, attempts to resolve the complaint, and determines whether there is reasonable cause to pursue civil action. If reasonable cause is present, HUD must bring the case before an administrative law judge. In the alternative, if either party elects to have claims or complaints decided in a civil action, HUD must refer the complaint to the U.S. Department of Justice for prosecution in the United States District Court.

State agencies must report the receipt of notices of Fair Housing Act (FHA) administrative and legal action issued by HUD or the Department of Justice to the Internal Revenue Service. The state agencies are responsible for reporting their receipt of notifications of administrative and legal action by HUD and the Department of Justice as outlined in the MOU. The IRS is responsible for determining whether the owner is out of compliance for purposes of IRC §42, and the associated out of compliance and back in compliance dates, based on the findings of the court proceeding. The determination will be based on the facts of the individual case.

With an understanding of the IRS’ position, it frightens me every time I hear an LIHTC owner or manager say they won’t spend their time or energy learning fair housing law. I’ve seen fair housing law suits destroy organizations. Defending yourself from even a false claim of discrimination can cost an enormous amount of time and money. And in the case of an LIHTC community, a serious finding of discrimination may cause the loss or recapture of tax credits, and the associated equity investment. If the loss of investment is large enough, it can seriously weaken the financial structure of a project. And don’t forget that every year an owner must certify to their compliance with LIHTC requirements, including their adherence to all applicable fair housing laws. You don’t want to be found out of compliance for lying on your owner’s annual certification of compliance.

Please, LIHTC owners, get your head out of the sand. Learn and implement your fair housing requirements. It’s the right thing to do.

Liz Bramlet is President of Liz Bramlet Consulting, LLC. Her firm provides training and consulting services to the affordable housing industry and specializes in the low-income housing tax credit (LIHTC) program. You can learn more about Liz, her firm, and the consulting and training services she offers by checking out her Web site at www.lizbramletconsulting.com, and her training center at www.lbctrainingcenter.com. You can follow Liz on her blog at www.lizbramlet.wordpress.com and on Twitter at www.twitter.com/lizbramlet.

(Image © iStockphoto.com/jgroup)

HUD Kicks Off Fair Housing Month With National Media Campaign Launch

Fair Housing Month is about commemorating the passage of the Fair Housing Act (FHA) and promoting awareness of housing discrimination laws. So, what better way for the U.S. Department of Housing and Urban Development (HUD) to kick off the month than to announce the launch of a new national media campaign?

HUD's new campaign is called "Live Free" and will run throughout the year, according to a press release. Acknowledging that "our society is more technologically advanced today," the campaign will utilize "the latest media tools to better reach all people about housing discrimination and what to do if they experience it," according to John Trasviña, Assistant Secretary for Fair Housing and Equal Opportunity.

Look for Facebook ads (such as these), digital videos, podcasts and more in the upcoming months that cover a wide range of pressing and prevalent fair housing issues.

Has HUD been doing enough to promote awareness of housing discrimination laws? Do you believe the new "Live Free" campaign will help educate the public about fair housing?

What do you think?

What's on Tap for Fair Housing Month 2011

Each year, Fair Housing Helper likes to commemorate Fair Housing Month in a different way. If you were following this blog last year, you may remember our honoring the occasion by publishing a new post related to Fair Housing Month for each day of the month.

This year, Fair Housing Helper is pleased to announce the following endeavors aimed at promoting awareness of fair housing laws in the United States:

1. Fairhousingblog.com will see its first-ever guest blog post in the middle of the month. Written by a nationally recognized housing consultant, the post will shine light on an important aspect of fair housing compliance as it intersects with affordable housing.
   
   
2. The Stark County Real Estate Investors Association (SCREIA) invited me to appear in Canton, Ohio as the keynote speaker at its annual Real Estate Investor Showcase on April 26, 2011. I look forward to presenting a range of important topics for property owners and managers that I detailed in my book, Every Landlord's Property Protection Guide: 10 Ways to Cut Your Risk Now (Nolo 2008). Chief among these topics is fair housing compliance, which can prove very costly even to well-meaning landlords and managers. (If you are interested in attending this event, please visit SCREIA's Event Details page for registration information.)
   
   
3. At the end of the month, I'll make an important announcement that you won't want to miss. So, check back and also feel free to follow me on Twitter @fairhousing!