What does equal housing opportunity mean?
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Key Takeaways
- Equal housing opportunity laws protect tenants and homebuyers from discrimination in housing based on race, color, religion, sexual orientation, gender identity, national origin, marital status, or disability.
- Sellers, real estate agents, appraisers, lenders, insurance providers and homeowners are affected by these laws.
- If you believe you have been discriminated against, you can file a complaint with the Department of Housing and Urban Development (HUD) and/or file a lawsuit.
How do equal housing opportunity laws work?
You have the right to choose where you live. Federal law protects you from discrimination when buying, renting, or financing a home.
Note
Alternate name: equal opportunity housing
and is also illegal under the Fair Housing Act. This means that lenders and landlords cannot influence what people do with their property, pressure tenants to sell or rent to a particular person, or draw artificial lines around neighborhoods to limit housing options for certain people based on protected characteristics.
What type of housing is covered?
Although most forms of housing are covered by these laws, there are some exceptions. For example, organizations and clubs that provide housing and have membership requirements may be exempt from special statutory provisions. These laws may also not apply to certain buildings with four or fewer homeowners or to single-family homes sold or rented without a broker or agent.
Who is Protected?
One of the basic equal housing opportunity laws. It protects you from discrimination for the following reasons:
A housing provider is not allowed to refuse to sell, rent or finance a home for you because you have one of these protected statuses. Furthermore, they cannot be used as a reason to set different terms or conditions for the sale, lease or financing of a residential property.
Additionally, landlords or property owners must not deny reasonable accommodations to people with disabilities. For example, even a building with a “no pets” policy must allow you to live with a service animal that supports your disability.
Otherwise, they're breaking the law and, if found guilty, could have you pay damages and face other consequences, such as tens of thousands of dollars in fines. You can also file a private claim against the defendant.
Important
There are some legal exceptions to these laws, such as the Senior Housing Exemption, which allows communities that provide housing for seniors to exclude families with young children.
Who enforces equal housing opportunity laws?
The Department of Housing and Urban Development (HUD) enforces these laws. HUD is a federal agency that works to ensure equal access to housing and promotes fair housing opportunities.
Equal Housing Opportunity and Rent
Fair housing laws cover almost all property types, including rental properties. Therefore, landlords and property managers must comply with these laws when renting out units. This includes when we advertise properties, screen applicants and set tenancy terms.
For example, when advertising a property, a landlord cannot include terms such as “Christians Only” or “Great for Families” in their ad. This could be seen as discrimination against potential tenants who are not Christians or who do not have children.
Additionally, landlords may not set different lease terms and conditions based on a tenant's membership in a protected class. This includes setting different prices for rent, requiring different security deposits, or having different rules for using common areas.
Equal Housing Opportunity and Home Sales
The Fair Housing Act also covers home sales. As a result, home sellers, real estate agents, appraisers, and mortgage lenders cannot discriminate against home buyers based on their membership in a protected class.
It is a team effort to ensure that these laws are not violated. From the real estate agent to the mortgage lender, everyone involved in selling a home must do their part to ensure that the home is sold without discrimination.
Take a look at the rights and obligations of those involved here.
Home buyers
Homebuyers have the right not to be discriminated against because of their protected attributes. This refers to the way housing is provided, financed, valued or insured for them. This means, for example, that you should be allowed to buy an apartment wherever you can afford it.
If you're buying a home, lenders can only judge your financial qualities, such as your credit score, credit report, income, and assets. Under the Equal Credit Opportunity Act, they must not make a decision based on whether your income comes from public assistance.
Note
The trend of sending sellers to a real estate agent to show why they should select their offer may inadvertently reveal protected class information. Hence, buyers should avoid this practice.
Sellers
Sellers are responsible for completing the home sale without discrimination. This means that you cannot legally make a decision about who will buy your home based on the buyer's membership in any of the protected categories.
Also, you may not instruct your real estate agent to show the property to certain types of buyers or to use specific language in advertisements that may discourage certain groups from making an offer.
Mortgage lenders
Lenders cannot refuse to report on loans or a mortgage because the applicant is a member of a protected class. They also cannot discriminate when providing loan terms to applicants.
Appraisers
Home appraisals are an important part of the home buying process. The current appraisal determines how much the lender is willing to lend to the buyer and helps the buyer know how much they can afford to pay.
shall appraise the property without regard to the race, religion, sex, national origin, marital status, or disability status of existing or potential residents.
In addition, the evaluators of all their reports. This includes ensuring that the information contains no comments or observations about the neighborhood that could be construed as discriminatory.
Real estate agents
Real estate agents play an important role in ensuring that home buyers and sellers are treated fairly throughout the transaction. They must follow fair housing laws when advertising properties, representing clients, and completing transactions.
This includes not discriminating against customers or potential customers, directing them to certain neighborhoods or types of homes, and not making discriminatory comments.
Equal housing opportunity laws
HUD enforces several equal housing opportunity laws. A brief overview of several that have shaped current equal housing opportunity requirements.
Fair Housing Act
It is the most comprehensive federal equal housing opportunity law. It prohibits discrimination in all aspects of housing, including rent, financing and appraisal. Also known as Title VIII of the Civil Rights Act of 1968.
Section 504 of the Rehabilitation Act of 1973
This law prohibits discrimination against people with disabilities in any program or activity that receives federal funding, including housing. It also requires reasonable accommodations to ensure equal access to housing for people with disabilities.
Title II of the Americans with Disabilities Act of 1990
HUD oversees the portions of this law related to housing for people with disabilities. There is no discrimination in public housing, housing assistance or referrals to homes.
Equal Credit Opportunity Act
Under this law, it is illegal for financial institutions to discriminate against loan applicants because of race, religion, sex, national origin, marital status, age, or receipt of public assistance.
It also requires lenders to give applicants the same information about loan terms and to consider all their qualifications, regardless of whether they belong to a protected class.
What to do if you experience housing discrimination
If you believe you have experienced housing discrimination, you can do so with HUD or your state's fair housing agency. You must do this within one year of the event.
HUD investigates complaints and works with the parties involved to resolve the issue. If they can't, HUD can file a lawsuit on your behalf.
You can also file a private claim against a person or organization that you believe discriminated against, even if you have filed a HUD complaint. You have two years to do so after the most recent violation.
Frequently Asked Questions (FAQ)
What is the relationship between equal opportunity housing and Section 8?
It is funded by the state and provides housing choice vouchers to low-income families, the disabled and the elderly. Although HUD oversees both programs, they are separate.
However, because the program helps people who are struggling to find affordable housing, it can help create equal opportunity in housing.
Who qualifies for equal opportunity housing?
Everyone deserves fair treatment in housing, regardless of race, religion, sex, national origin, marital status, disability, or any other characteristics protected by law. So the only qualifications are that you are a member of a protected class.
What are the income limits for equal opportunity housing?
There is no income limit for equal opportunity housing. HUD's goal is to give everyone, regardless of income, a fair chance to find housing that meets their needs.
However, other HUD programs, such as Section 8, have income limits. So if you're trying to move into public housing, your income will be taken into account. The amount you can earn varies depending on your location and the size of your family.
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