Fair Housing For Property Managers

1. Fair Housing For Property Managers [Presenter’s Name] Human Relations Specialist N.C. Human Relations Commission www.doa.nc.gov/hrc

2. Agenda • Agency overview and mission • Definition of housing discrimination • Protected and non-protected classes • Laws prohibiting discrimination • Examples of discriminatory housing practices • Reasons for complaints • Tenant issues • Selection • Rules and obligations, and • Termination process • Legal practices

3. Agency overview

4. Mission of the Human Relations Commission To provide services and programs aimed at improving relationships among all citizens of the state, while seeking to ensure equal opportunities in the areas of employment, housing, public accommodations, recreation, education, justice and governmental services

5. General functions of the Human Relations Commission • Enforce the NC Fair Housing Act through the investigation of housing discrimination complaints • Provide referrals for public accommodation and employment issues • Conduct outreach to public and private entities about fair housing, civil rights laws, and human relations issues

6. General functions of the Human Relations Commission • Push for stronger policies and laws against discrimination • Offer resources for the resolution of community conflicts and to victims of hate crimes

7. Definition of housing discrimination: The act of treating someone differently in a housing transaction on account of race, color, sex, religion, national origin, families with children and handicap

8. The 7 protected bases: Race Color Religion Sex National Origin Families with Children Handicap

9. Categories not protected under state and federal laws Marital status Students Sexual Orientation Income Age

10. Laws prohibiting housing discrimination

11. Title VIII - Federal Fair Housing Act Prohibits discrimination in a real estate transaction based on race, color, sex, religion, national origin, familial status or handicap State Fair Housing Act - Chapter 41A Prohibits discrimination in a real estate transaction based on race, color, sex, religion, national origin, familial status or handicap N.C.G.S. 93a - Rea Estate Licensing Law Any conduct by a broker or salesman which violates the State Fair Housing Act constitutes a violation of the Real Estate License Law

12. Residential real estate transactions • Rentals • Sales • Financing • Purchasing • Constructing • Improving • Repairing • Maintaining • Appraisals

13. Types of housing covered by the law • Houses for sale or rent • Apartments for sale or rent • Mobile homes for sale or rent • Beach rentals • Time-shares • Vacant lots (residential use only)

14. Land use • Land use planners, such as zoning boards, cannot discriminate based on the seven protected classes, or, with some exceptions, because a development or plan, may contain affordable housing • State Fair Housing Act, N.C. General Statute § 41A-4(g)

15. Familial Status The 1988 Amendment prohibits housing discrimination against: • families with children under age 18 • pregnant women • the designee of the parent or other person having custody, provided the designee has the written permission of the parent or other person

16. Examples of Familial Status violations • Refusing to rent to families with children or to families based on the number of children in the family • Segregating families with children to a certain part of the complex, building, or floor • Having unreasonable safety rules and policies targeted towards children • Charging different security deposits for families with children

17. Definition of handicap With respect to a person, a physical or mental impairment which substantially limits one or more major life activities; a record of such an impairment; or a person being regarded as having such an impairment* *Federal Register, Vol. 54, No. 13, Monday , January 23, 1989, Rules and Regulations.

18. Major life activities include: • Self-care • Manual tasks • Walking • Breathing • Seeing • Hearing • Speaking • Learning • Working

19. Handicap requirements • Multifamily housing built after March 13, 1991 must be accessible and comply with the FH Act’s Design and Construction requirements: • Accessible building entrance on an accessible route • Accessible and usable public and common use areas • Usable doors • Accessible route into and through the unit • Environmental controls are in accessible locations • Reinforced walls for grab bars • Usable kitchens and bathrooms

20. Handicap requirements • Reasonable Accommodations A change in a rule, policy or practice, or in the way services are provided, to enable a disabled person to have equal opportunity to use and enjoy a dwelling (or common area) • Reasonable Modifications Physical changes to a dwelling, or common areas, that a landlord allows a disabled tenant to make to enable the tenant an equal opportunity to use and enjoy a dwelling or common area. (A tenant is responsible to pay for the modification unless the property is federally subsidized.) • Do not ask unlawfulquestions regarding a disability

21. Examples of reasonable accommodations • Moving a disabled tenant to a larger unit to accommodate live-in care • Moving a mobility impaired tenant to a ground floor unit • Assisting a mentally impaired person in filling out an application • Granting an exception to “no pets” policy to allow a service animal or companion animal

22. Examples of reasonable modifications • Installation of a grab bar in a bathroom shower • Construction of a handicap ramp at a point of entry • Installation of a door signaler (to replace a traditional doorbell) for hearing impaired tenants

23. Some examples of discriminatory housing practices • Discriminatory advertising and/or statements • Falsely denying that housing is available • Screening applicants differently • Refusing to allow a person to apply for housing • Refusing to rent • Charging different rents or security deposits • Segregation within a complex • Refusing to make a real estate loan for residential property

24. Other examples of discriminatory housing practices • Failing to grant reasonable accommodations/ modifications to disabled residents • Failing to build accessible housing that complies with the FHA’s design & construction standards • Unwelcomed and uninvited sexual advances by a landlord towards a tenant • “quid pro quo” (e.g. a landlord evicts a tenant who rebuffs landlord’s unwelcomed advances or offers lower rent for sex)

25. Who can bring a charge? Any person or group that is harmed or about to be harmed by an act of housing discrimination

26. How are complaints processed? • Complainants contact HUD or call the NC Human Relations Commission • Complainant is interviewed in intake process • A complaint is drafted • Complainant signs the complaint • Respondents are notified • Complaint is investigated • Conciliation efforts are attempted to resolve the complaint throughout the investigation. • Determination issued by the Commission. • Enforcement of finding and right to sue letter issued to complainant in a “no cause” finding; hearing before an administrative law judge in a “cause” finding or either party can elect to go to court.

27. Exemptions…

28. Rental of housing accommodations in a building which contains accommodations for not more than four families living independently of each other, if the lessor or a member of his/her family resides in one of the units • Rental of a room/s in a private house (not a boarding house) if the lessor or a member of his/her family resides in the house

29. Religious institutions, charitable or educational organizations operated by the organization which which gives preference to members of the same religion, as long as members in such religions are not restricted by race, color, sex, national origin, handicap status or familial status • Private clubs • Single-Sex dormitories • Commercial real estate

30. Reasons for complaints • Discourteous treatment • Run-around • Differential treatment

31. Tenant selection process Advertising • No written or verbal ad about refusal to rent because of race, sex, religion, national origin, color, handicap or familial status • No ad indicating preference based on race, sex, etc. • No steering • Running ads when there are no available units may cause issues

32. Tenant selection process Written application • Serves as record • Illegal to keep record of tenants’ race (unless required by federal government for subsidized housing) • Offer assistance to non-readers

33. Tenant selection process Interviewing applicants • Treat all applicants the same • Offer written applications to everyone • Ask relevant questions • Ask the same questions to all applicants • Avoid questions about applicant’s personal beliefs (i.e., religious, political)

34. Tenant selection process Rejecting applicants • Tell all rejected applicants that they are rejected • Make a written notation of the reason for the rejection • Tell applicants the real reason for the rejection, (preferably in writing)

35. Tenant selection process Credit checks/references • Use them for everyone or no one • Be consistent • Have written standards for judging credit ratings

36. Tenant selection process Waiting lists • Don’t say you have one if you do not

37. Tenant selection process Racial quotas • Rent to all qualified applicants on a first-come, first-serve basis (unless you have a waiting list) • Maintaining only a specified percentage of minorities is illegal.

38. Tenant rules and obligations Changes in rent • Rent Specials (problem could arise if a tenant feels like another tenant got a better deal) Late rent payments • Be consistent: If you’re going to accept late rent from some, be prepared to accept late rent from all • Have a standard lease that has a provision on late payments and late fees

39. Tenant rules and obligations Neighbor’s complaints about tenants • Can be a good source of information about tenants who are violating rules, but could also be the start of discrimination complaint • Investigate complaints from tenants, ask for details from complaining party

40. Tenant rules and obligations Overnight guests, long-term guests and unauthorized live-ins Rental managers may: • Forbid tenants from having overnight guests • Forbid tenants from having long-term guests • Forbid people from living in an apartment if they are not on the lease • Require all tenants to get prior permission for overnight guests

41. Tenant rules and obligations Overnight guests, long-term guests and unauthorized live-ins • Be consistent when enforcing the overnight guest rule • Investigate complaints. Don’t snoop. Ask the tenant, then observe, if necessary

42. Termination of tenancy:Evictions Recommendations for reducing tenant complaints • Give oral and/or written warnings before evicting (document in file) • Give tenant the true reason for the eviction

43. Termination of tenancy:Evictions Guidance for protecting the property owner if a complaint is filed • Consistency • Fair warning • Being straightforward • Documentation All tenant rules should be clear, in writing and distributed to all tenants

44. Handling maintenance and repair requests • Follow regular procedures for responding to a work order. • Follow procedures for work orders, addressing health and safety issues in all cases regardless of the health condition of resident. • If a delay in service is expected, inform the resident of the reason for the delay. • Respond in order of receipt of requests, unless a case is an emergency

45. Handling maintenance and repair requests • Refer requests for changes to the unit to the resident service staff • Inform resident service staff of any apparent violations of resident rules • Treat all residents the same • Document your work

46. The 10 most common fair housing mistakes 1. Failure to keep records 2. Inconsistency in the application of rules 3. Retaliation 4. Having an all-adult complex 5. Violation of familial status out of concerns for safety 6. Failure to reasonably accommodate a tenant with a disability

47. The 10 most common fair housing mistakes 7. Failure to clearly convey commitment to fair housing to managers, rental/sales agents, staff and tenants/residents 8. Failure to train managers in fair housing law (recommended annually) 9. Unreasonable occupancy standards 10. Failure to communicate with tenants, clients, applicants

48. Practices that are legal • Rental managers may set reasonable occupancy standards for their properties. • Rental managers may set criteria for accepting applications. • Rental managers may set tenant rules for their properties. • Rental managers may evict rule violators.

49. Commonly asked questions and suggested responses Q: “What is the racial makeup of this complex?” A: “Our company does not identify properties by the race of the complex.” Q: “Can’t you just pick out some nice communities in a safe area for us?” A: “We have many apartment communities in our market area to choose from. We welcome you to inspect a few to see which ones best suit your needs.”

50. Commonly asked questions and suggested responses Q: “I’m from out of town, could you suggest some good areas?” A: “We feel that all the areas in which we do business have many positive features. However, the communities, style and price of housing vary, what particular features are you looking for?”