Fair Practices for Affordable Housing

According to the U.S. Department of Housing and Urban Development (HUD), housing discrimination is illegal for nearly all accommodations, including private, public, and affordable housing. In fact, federal laws—such as the Fair Housing Act—specifically prohibit discrimination by housing providers against applicants and residents of affordable housing programs. HUD oversees fair housing practices by addressing complaints and answering questions from U.S. citizens.

The Fair Housing Act

The Fair Housing Act—known as Title VIII of the Civil Rights Act of 1968—forbids discrimination based on the following protected classes: race, color, religion, sex (including gender identity and sexual orientation), national origin, familial status, and disability. The Act was passed seven days after the assassination of Rev. Dr. Martin Luther King, Jr. to honor his work to create fair and open housing for all. The Civil Rights Division of the U.S. Department of Justice works to enforce the Fair Housing Act and, in 1991, established the Fair Housing Testing Program to identify unlawful housing discrimination based on race, national origin, disability, or familial status in violation of the Act.

Affordable Housing for All

All individuals have the right to equal opportunity when searching for a place to live; however, affordability is one of the biggest barriers when it comes to housing. In the U.S., there is a shortage of 7.3 million affordable rental options for renters with extremely low incomes. As a result, President Biden recently announced new actions to make renting more affordable, which include:

• Passing legislation for corporate landlords to cap rent increases on existing units at 5% or risk losing current federal tax breaks
• Repurposing public land to provide as many as 15,000 additional affordable housing units in the state of Nevada
• Rehabilitating distressed housing, building more affordable housing, and revitalizing neighborhoods

Fair Practices for All

While fair housing laws can be a complex topic for affordable housing, here are a few straightforward practices to help you stay compliant, and ensure you’re administering fairness and inclusivity in your community.

Inclusive Advertising

As you promote available rental units, be mindful of how you list them online, in print, and even on yard signs. Advertisements shouldn’t indicate a preference or limitation based on any protected class. For example, while your listing can include amenities and features of the space such as “two bedrooms” or “community pool,” it shouldn’t say “single adults preferred” or “no children allowed.” Including the equal housing opportunity logo, statement, or slogan on your marketing materials and/or website will show prospects and renters your commitment to fair housing practices.

Fair Screening Procedures

Once you’ve received several inquiries for your listed unit, it’s time to screen the applicants. As with your advertising endeavors, be careful of the type of questions you ask prospects or include on the application. For instance, while it’s fine to ask how many occupants will be living in the unit, you shouldn’t ask if the applicant has children or what race they are.

Also, it’s important to understand what disparate impact means and how screenings—such as criminal background, credit history, and source of income—can be susceptible to this form of discrimination. Disparate impact refers to policies and practices that may appear to be fair, but disproportionately affect a protected class—regardless of intent.

As you conduct screenings, make sure to ask the same questions of all your applicants and provide objective policies as to why you choose your residents. Further, keep records on all your residents (current, past, and prospective) in case questions arise about your screening process. AmRent—Rent Manager’s built-in resident screening partner—can provide screening solutions to help you stay compliant as well.

Reasonable Accommodations

Now that you’ve identified which applicant will become a new resident in your community, you should be mindful of any accommodations they may need for their dwelling. Accommodation requests are adjustments or exceptions to a property’s standard rules, policies, or services for residents with mental or physical disabilities. Examples include needing an assistance or service animal, or modifications to the dwelling for better access, such as a wheelchair ramp.

Whether a request is reasonable or not depends on the situation. Here are a few steps to take if a resident asks for an accommodation or modification:

1. Document and evaluate the request
2. Have a conversation with the resident to understand why the accommodation is needed
3. If you’re unable to fulfill the need, suggest an alternative solution

Affordable Housing Software Solution

As you work to provide a fair and inclusive community for your residents and applicants, consider an affordable housing software solution to help streamline the management process. Rent Manager’s comprehensive features can assist with all your affordable housing management needs—from attaching HUD and HAP contracts and documents to unit accounts to tracking and managing rent schedules and more. And when rent is due, residents can use Rent Manager’s Tenant Web Access (TWA) portal and rmResident mobile app to make their portion of the payment, while the PHA subsidy portion is withheld.

Conclusion

Property management professionals must understand fair housing laws and how to maintain compliance. By incorporating fair practices into the advertisements, applicant screenings, and accommodation requests of affordable communities, you’ll create an inclusive environment and demonstrate your dedication to equal and open housing for all.