Tuesday, February 12, 2013

Inside Real Estate: The Fair Housing Act


In the United States, there are federal laws regarding housing discrimination. They are actually about eliminating discrimination when people want to buy a home. This topic is really important. To start with, Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), prohibits discrimination in the sale, rental and financing of dwellings based on race, color, religion, sex or national origin. This was amended in 1988 to include discrimination because of disabilities or family status. At the United States Department of Justice, Civil Rights Division, the latest Fair Housing Act directive is spelled out, including how to file complaints and criminal penalties.

What are the exceptions? Who is exempt from following these laws when selling their property to someone?

There is an exception to the family status (children or pregnant women in the family) which is based on the Housing for Older Persons Act of 1995 (HOPA). To qualify for the exception, the housing development must advertise that it is for older adults and there must be a person who is 55 years of age or older living in at least 80% of the occupied units. If you want more information about the "older people" exception, it's available in the Federal Register for Friday, April 2, 1999.

Religious organizations and private clubs can still limit their property to just their own members as long as the restriction is only based on religion or club membership. Also exempt is someone selling their own home as long as that person doesn't own more than three homes at a time. Another exemption is an owner who lives in a unit of a fourplex or smaller.

However, if the person or property doesn’t fit into any of these categories, he or she does not have to worry about discriminating against someone who has been convicted of illegally manufacturing or selling "controlled substances" (drugs). It is okay to not sell their property to someone like that.

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