The federal Fair Housing Act was passed as part of Title VIII of the Civil Rights Act of 1968 (FHA). As amended, it prohibits discrimination in the sale, rental, and financing of dwellings and in other housing-related transactions. With some exceptions, FHA applies to virtually all direct providers of housing, such as landlords and real estate companies, as well as others connected with such transactions and housing, including municipalities, banks and lending institutions, and homeowners insurance companies.
The Equal Credit Opportunity Act (ECOA) forbids discrimination in connection with credit transactions, including mortgage financing. It is thus possible to violate (and be prosecuted under) both the FHA and ECOA at the same time. Since its inception, the FHA has chiefly been administered and enforced by the Department of Housing and Urban Development (HUD).
Protected Categories
FHA prohibits discriminatory practices that make housing unavailable to persons because of:
- Race or color – racial discrimination is still prevalent; minorities are sometimes told there is nothing available or are steered to certain areas based on their race.
- Religion – although an exception exists allowing religious organizations that operate non-commercial housing to reserve such housing for members of their religion.
- Sex – most such complaints arise from sexual harassment in connection with renting.
- National origin – HUD has sued lenders for imposing more stringent standards and terms on minority borrowers.
- Familial status – FHA prohibits the refusal to rent or sell to families with children under 18. Exceptions are made, e.g., for complexes or developments where at least 80% of the units are occupied by individuals who are over 55 years of age.
- Disability – defined broadly to include those with mental or physical impairments that limit one or more life functions (walking, seeing, etc.). It does not include drug addicts or juvenile delinquents, or those who present a direct threat to persons or property. FHA prohibits discrimination against group homes of the disabled or the refusal to make reasonable accommodations in land use and zoning to allow group homes for the disabled. Under FHA, discrimination includes failure to design and construct new multi-family dwellings accessible and usable by the disabled.
Complaint Procedure
Those who believe that their rights under the FHA have been violated have several options. They may file a complaint with HUD. HUD will then notify the alleged violator of receipt of the complaint and permit that person to submit an answer. HUD also investigates the complaint. HUD attempts to settle complaints through conciliation, but if such attempts are not successful and a violation appears to have occurred:
- If both parties agree, the matter may be referred to an HUD administrative law court. HUD attorneys will prosecute the action, or the complainant may hire an attorney. There is no right to a jury in this type of proceeding.
- If either party chooses, the matter may be submitted to a federal district court. The U.S. Department of Justice (DOJ) will file and prosecute a complaint on behalf of the complainant or the complainant may retain an attorney and file suit in district court. The matter may be tried by a judge or jury. The complainant may also file a civil suit within two years of the occurrence directly in district court, without filing a complaint with HUD, subject to some exceptions increasing the time in which to bring an action.
If the DOJ believes the actions are part of a larger pattern or practice of discrimination, the DOJ may file additional charges and seek relief on behalf of others who were also discriminated against. The DOJ may also seek substantial civil penalties payable to the government. When force has been used to interfere with FHA rights, the DOJ may bring a criminal action, which can result in prison sentences and/or fines.
Recoverable Damages and Penalties
After the administrative hearing, the Administrative Law Judge (ALJ) can order:
- Compensation to the complainant for actual damages, humiliation, and pain and suffering.
- Injunctive or other equitable relief, e.g., making the housing available to the complainant.
- Civil penalties paid to the government of up to $10,000 for a first offense, $25,000 for a second offense within a five-year period, and $50,000 for three violations within a seven year period.
- The violator may be ordered to pay reasonable attorneys' fees and costs.
If the district court finds a violation of the FHA has occurred, it may also award actual damages, pain and suffering, injunctive or other equitable relief, attorneys' fees and costs, and punitive damages to punish the violator. Unlike the FHA, the ALJ cannot award punitive damages.
