Fair Housing and Homeowners Associations

Reviewed December 2004

Federal, state, and local fair housing laws require you to provide sellers and homebuyers with equal professional service in marketing or selecting their properties. What would you do if a seller, homebuyer, or sales associate asked you to discriminate based on race, color, religion, sex, handicap, familial status, or national origin?

The NATIONAL ASSOCIATION OF REALTORS® has published a pocket guide, Fair Housing: Opening Doors to Equal Opportunity, which suggests answers to questions REALTORS® may get from sellers or buyers who have discrimination as their motive.

In this and future articles, we'll feature some of these questions, the accompanying discussion about the issue and your possible liabilities, and NAR's suggested answers. However, keep in mind that every situation is unique.

Question

The Condominium Association (Co-op Board or Homeowners' Association) doesn't want someone who makes a lot of demands to move in. Do you think they might want to keep someone with a wheelchair out of this unit, since it would require a ramp and special parking place?

Key points

- The Fair Housing Act prohibits discrimination against persons with disabilities.

- Condo, co-op, and homeowners' associations often reserve the right to approve or reject new residents. Such approval or rejection cannot be based on race, color, religion, sex, handicap, familial status, or national origin.

- Condominium, co-op, and homeowners' associations are required to allow reasonable modifications to housing, such as a ramp, paid for by an occupant with disabilities. They are also required to make reasonable accommodations in rules, such as those governing parking, to enable an occupant with disabilities to use and enjoy the dwelling.

- Restrictions in property deeds, covenants, or other bylaws that restrict occupancy based on race, color, religion, sex, handicap, familial status, or national origin are generally unlawful and cannot be enforced, nor should they be communicated to any prospect without notification that the restrictions are void and unenforceable.

Area of liability

Refusing or discouraging a sale because of disability is a violation of the Fair Housing Act. Refusing to allow reasonable modifications or refusing to make reasonable accommodations in rules, practices, and procedures to allow an occupant with disabilities to use and enjoy a dwelling is a violation of the Fair Housing Act.

Actions

- Reassure the seller that the Fair Housing Act prohibits the condominium (co-op or homeowners') association from discriminating.

- Inform the seller that the Fair Housing Act provides for reasonable modifications to the dwelling and accommodations in rules to allow occupants with disabilities to use and enjoy a dwelling.

- Do not communicate the misgivings reported by the seller to any prospective purchaser or cooperating agent or buyer's sales associate unless a prospect has experienced discrimination.

Suggested response

"The Fair Housing Act protects people with disabilities from discrimination in housing. A condominium (co-op, homeowners') association may not use disability as a factor in making decisions on the approval of a new occupant.

"In addition, the Fair Housing Act requires that reasonable modifications to the premises, such as the installation of a ramp, made at the expense of the occupant, be allowed if those modifications are necessary for an occupant with a disability to use and enjoy the dwelling unit. Likewise, the association must make reasonable accommodations in its rules, such as those assigning parking spaces, to allow an occupant with a disability to use and enjoy the dwelling.

"I can't imagine the association discriminating in such a manner. If you would like, I can provide some fair housing information for the association."

Additional thoughts

Laws don't change attitudes, people do. A personal commitment must be made to eliminate bias and prejudice from the housing market. Equal housing opportunity is the law, it's good business - and it is right.

Excerpted from Fair Housing: Opening Doors to Equal Opportunity Pocket Guide with permission from NAR. To order, call 800/874-6500 and specify product #166-81. Member price is $3 plus s/h (minimum order of 5).
Arizona REALTOR® Digest, April 1997