This is the first episode in our new video series covering state and federal fair housing laws. This episode introduces the Civil Rights Act and the Federal Fair Housing Act (FFHA).
Property rights cannot be based on status
Regardless of race, all citizens of the United States have the right to purchase or rent real estate under the federal Civil Rights Act. [42 United States Code §1982]
Further, all individuals within the United States are given the same rights to make and enforce contracts (rental and lease agreements), sue, be sued, enjoy the full benefits of the law and be subject to the same punishments, penalties, taxes and licenses, regardless of race or legal status. [42 USC §1981]
The federal Civil Rights Act applies to race discrimination on the sale or rental of all types of real estate, both residential and commercial. Racially motivated activities in any real estate leasing transaction are prohibited.
Federal protection against racial discrimination given under the Civil Rights Act is a broad protection which applies to types of discrimination prohibited in all activities between individuals present in the country.
Anti-discrimination in residential property
While the federal Civil Rights Act provides general protection against all prohibited discriminatory activity, the Federal Fair Housing Act (FFHA) protections are specifically limited to dwellings, including rental housing. [42 USC §§3601 et seq.]
A dwelling includes any building or structure that is occupied, or designed to be occupied, as a residence by one or more families. A dwelling also includes vacant land offered for lease for residential dwelling purposes, such as a lot or space made available to hold a mobilehome unit. [42 USC §3602(b)]
The FFHA prohibits discrimination in the following situations:
- the sale, rental or advertisement of a residence;
- offering and performing broker services;
- making loans to buy, build, repair or improve a residence;
- the purchase of real estate loans; or
- appraising real estate. [42 USC §3602]
The FFHA bars the use of any discriminatory actions a seller, landlord or property manager might take against a prospective buyer or tenant based on an individual’s:
- race or color;
- national origin;
- religion;
- sex;
- familial status; or
- handicap. [42 USC §3602]
Familial status refers to whether a household includes individuals under the age of 18 in the legal custody of a parent or legally designated guardian. [42 USC §3602(k)]
Handicapped persons are individuals who have:
- a physical or mental impairment which substantially limits the individual’s life activities; or
- a record of, or are regarded as having, a physical or mental impairment. [42 USC §3602(h)]
The term “handicap” excludes individuals who illegally use a controlled substance. However, alcoholics and individuals who are considered “recovering or recovered addicts” are protected as handicapped individuals. [United States v. Southern Management Corporation (4th Cir. 1992) 955 F2d 914]
Consider a blind prospective tenant who has a guide dog and seeks to rent an available unit in a multi-unit residential dwelling structure.
The landlord refuses to rent a unit to the blind tenant, claiming the guide dog violates the building’s pet restriction in the covenants, conditions and restrictions (CC&Rs).
The blind tenant claims the landlord is discriminating against them due to their disability since the landlord denied them housing on account of the guide dog.
Here, a landlord may not refuse to rent residential property to a blind tenant because of inclusion of the tenant’s guide dog. Landlords are also prohibited from discriminating against tenants with dogs specially trained to assist deaf and other disabled individuals. [Calif. Civil Code §54.1(b)(6)]
Related article:
Letter to the editor: What are the rights of a tenant with a service or support animal?
Press Release - Mar 1, 2022
NEW YORK, March 1, 2022 (Newswire.com) - iQuanti: Homebuyers and sellers may face discrimination when buying, renting, or selling properties due to their race, color, national origin, religion, disability or sex. While certain laws protect residential home buyers from discrimination, commercial real estate lending and buying can work differently. Discrimination laws can also vary from state to state.
It's important for business owners to understand how they can be protected from discrimination when buying or leasing commercial properties, such as retail shops, office buildings, or warehouses.
How are residential buyers and lessees protected from discrimination?
The Fair Housing Act protects people from discrimination when buying, renting, or financing a home. It states that people can't be discriminated against based on race, color, national origin, religion, sex (including pregnancy), age, or disability.
There is no federal law in the U.S. preventing housing discrimination on the basis of sexual orientation, but many states and cities have enacted laws expanding housing discrimination protections to include these groups. The protected class of sex discrimination has also been interpreted to include sexual orientation and gender identity in some cases, and in February 2021, the Department of Housing and Urban Development announced that it will enforce the Fair Housing Act to prohibit discrimination based on sexual orientation and gender identity.
This means that an apartment landlord, for example, can't refuse housing to a tenant because they practice a different religion. Or a mortgage lender can't change the conditions of a homebuyer's loan because they have a disability.
How are commercial real estate buyers and lessees protected from discrimination?
Commercial properties used for housing purposes, such as apartment buildings and fixer-uppers are covered under the Fair Housing Act. That means a developer buying a house to flip or knock down can't be discriminated against. Hotels and structures for temporary lodging, on the other hand, may not be covered under the Fair Housing Act.
Corporate tenants may also qualify as tenants under fair housing, meaning that they are protected from discrimination on account of any protected class. For example, commercial spaces within a housing complex may fall under fair housing.
Discrimination on the basis of race in buying or selling commercial real estate is also a violation of the Civil Rights Act of 1866. The act states that "All citizens of the United States shall have the same right, in every State and Territory, as is enjoyed by white citizens thereof to inherit, purchase, lease, sell, hold and convey real and personal property."
States and jurisdictions may also set their own anti-discrimination laws for commercial property transactions based on different factors, such as the number of units in a commercial building. Some states have enacted legislation that makes fair housing standards apply to all commercial real estate as well as housing. For example, New York State's Anti-Discrimination Law groups together housing, land and commercial space under the same standards for discrimination.
Of course, it is often the case that when discrimination occurs or is suspected, it may be difficult to prove. Suspected cases of discrimination in commercial real estate lending, renting or other transactions should be brought to an attorney for a fuller understanding of the rights of the commercial buyer or tenant in their state and locality.
Source: iQuanti, Inc.