Definition
The Fair Housing Act (FHA) is a federal law that prohibits discrimination in housing-related transactions, ensuring that all individuals have equal access to housing opportunities regardless of race, color, religion, sex, disability, familial status, or national origin. It applies to home sales, rentals, mortgage lending, and other housing services.
Explanation
Enacted in 1968 as part of the Civil Rights Act, the Fair Housing Act aims to eliminate housing discrimination and promote fair access to housing. The law applies to:
- Real Estate Sales & Rentals – Landlords, property owners, and real estate agents cannot refuse to sell or rent a property based on protected characteristics.
- Mortgage Lending – Lenders cannot deny loans or charge higher interest rates based on race, gender, or other protected factors.
- Advertising – Housing ads cannot indicate a preference or exclusion based on protected categories.
- Reasonable Accommodations – Landlords must allow reasonable modifications for disabled tenants (e.g., wheelchair ramps, service animals).
The law is enforced by the U.S. Department of Housing and Urban Development (HUD). Violations can result in legal penalties, fines, and lawsuits.
Example
A real estate agent refuses to show homes in a certain neighborhood to buyers of a specific ethnicity. This is a violation of the Fair Housing Act, and the buyers can file a complaint with HUD for discrimination. If found guilty, the agent and brokerage could face significant fines and legal consequences.