Are you familiar with fair housing laws?

One of the most important areas of landlord-tenant law you need to be familiar with is fair housing. Both federal and state fair housing laws exist to protect individuals from discrimination when renting or purchasing housing, ensuring equal opportunities for all.

While federal fair housing laws apply across the entire United States, North Carolina has additional state-specific laws that may offer even more protections than the federal law requires. As a result, rental property owners must understand how these two sets of regulations work together and where they might differ.

Understanding your obligations under both the Fair Housing Act (FHA) at the federal level and the North Carolina Fair Housing Act will help you avoid unintentional discrimination and stay compliant with both state and federal guidelines.

Quick Summary:

State and federal fair housing laws establish protected classes against whom landlords cannot discriminate.
Discrimination is when you treat applicants or tenants differently based on their protected class status.
Discrimination can occur in advertising, screening, and unfair lease terms.
Consequences to violating fair housing laws can be expensive.

Overview of Fair Housing Laws

Fair housing laws are meant to ensure that all people have equal access to housing opportunities. These laws prohibit discrimination based on certain protected classes and require landlords to treat all applicants and tenants fairly and equally, regardless of their personal characteristics.

Federal Fair Housing Act (FHA)

The Federal Fair Housing Act, which was enacted in 1968 as part of the Civil Rights Act, applies nationwide and prohibits discrimination in housing based on the following protected classes:

Race
Color
National origin
Religion
Sex (including gender identity and sexual orientation, following recent legal updates)
Disability
Familial status

These protections extend to a wide range of housing-related activities, including renting, selling, advertising, and financing properties. The FHA applies to almost all residential rental properties, with some exceptions, such as properties with fewer than four units where the owner lives in one of the units.

North Carolina Fair Housing Act (NCFHA)

North Carolina’s Fair Housing Act (N.C.G.S. § 41A-1) aligns closely with the federal FHA but includes additional state-specific protections. In addition to the federal protected classes, the North Carolina Fair Housing Act offers protection based on marital status and military status. This means that, in North Carolina, it is illegal to discriminate against someone based on whether they are married or unmarried, or whether they are a member of the armed forces.

Importantly, the North Carolina Human Relations Commission (NCHRC) enforces fair housing laws within the state. While the NCHRC works closely with the U.S. Department of Housing and Urban Development (HUD), the agency also handles state-level fair housing complaints. In some cases, North Carolina may offer remedies beyond those available under federal law.

What Constitutes Discrimination?

Discrimination under fair housing laws includes actions that treat tenants or prospective tenants unfairly based on their membership in a protected class. This can take many forms, including:

Refusing to rent or sell a property to someone because of their race, national origin, or any other protected class.
Making housing unavailable by telling prospective tenants that a property is not available when it actually is.
Setting different terms or conditions for renting or buying based on a protected class (for example, requiring higher deposits for tenants with children or offering less favorable lease terms to people with disabilities).
Harassing tenants based on a protected class, such as creating a hostile environment for someone because of their gender, religion, or race.
Retaliating against a tenant for filing a fair housing complaint or for exercising their rights under fair housing laws.

It’s important to note that fair housing laws also protect individuals from discriminatory advertising. For instance, you cannot advertise your property in a way that implies certain groups are not welcome, such as saying “no children” or “ideal for young professionals” if those descriptions could exclude families or older tenants.

Common Fair Housing Violations to Avoid

Even unintentional discrimination can lead to legal trouble. Here are some common violations that landlords should avoid:

Discriminatory Screening Practices

Screening tenants based on criteria like credit history, income, or rental references is common, but be cautious about how these criteria are applied. For example, rejecting an applicant because they are a single mother or have a disability may be considered discriminatory. It’s essential to apply the same screening criteria to all applicants and ensure that any exclusions are based on legitimate, non-discriminatory factors.

Discriminatory Lease Terms

Make sure that your lease terms and conditions are consistent for all tenants. Charging one tenant a higher rent based on their race, national origin, or any other protected class is illegal. Similarly, imposing stricter terms for tenants with children or individuals with disabilities can violate fair housing laws.

Failure to Accommodate Disabled Tenants

Under both federal and state fair housing laws, landlords must make reasonable accommodations for tenants with disabilities. This could include allowing a tenant to have an emotional support animal in a no-pets property or making modifications to the property (like installing grab bars in bathrooms) to meet the needs of a tenant with mobility challenges.

Discriminatory Advertising

Ensure that all of your advertising is free from language that could be seen as discriminatory. For instance, language like “ideal for young professionals” could discourage older applicants from inquiring about your rental. Instead, focus on the property’s features and amenities without referencing protected characteristics.

Enforcement and Consequences

Violating fair housing laws can lead to serious consequences, including fines, legal fees, and potential damages. Complaints about housing discrimination can be filed with the U.S. Department of Housing and Urban Development (HUD) or the North Carolina Human Relations Commission (NCHRC). If a violation is found, landlords could face civil penalties and fines, compensatory damages, which would be awarded to victims of discrimination, punitive damages if the violation was found to be willful, and injunctions, which require changes to rental processes and procedures.

We maintain consistent procedures and processes to protect you from potential fair housing violations. We also stay up to date on all the changing laws and updated requirements. Learn more by contacting us at Wess Cason Realty. We provide real estate and property management services in Charlotte and the surrounding areas in Mecklenburg, Union, and Cabarrus County.