In April of every year the Department of Housing and Urban Development (HUD) celebrates Fair Housing. This year HUD is reaffirming Fair Housing and its willingness to pursue litigation over those denied housing; and the impact on property managers and landlords could be significant.
Every year in April the Department of Housing and Urban Development (HUD) celebrates Fair Housing. As a part of their celebration HUD reaffirms its “willingness” to pursue court action in cases over individuals or families being denied housing due to disability or other reasons. It is incumbent on property managers and landlords to be legally and lawfully compliant with tenant screening policies and practices or face the consequences.
A review of recent prosecutions shows confirms that HUD is making good on its promise to pursue cases where tenants with disabilities have been denied companion animals, and families denied housing on occupancy limits. A new ruling also clarifies that, while a policy may not be discriminatory on its face, a landlord may still be prosecuted if that policy causes a more subtle, “disparate” impact. http://www.american-apartment-owners-association.org/property-management/latest-news/fair-housing-month-good-time-review-leasing-policies/
Disparate impact is a challenging legal term that will continue to confront landlords and property managers. Further, the legal landscape governing the use of public records continues to evolve and disparate impact will continue to be a large part of the conversation, especially in terms of renting and tenant screening.
Disparate impact is a legal theory that has been aggressively advocated by the Obama administration. It holds that even if you have no intent to discriminate against a “protected class” of persons under the U.S. Civil Rights Act — whether racial or ethnic minorities, senior citizens, handicapped individuals or others — you may be in violation of the law if your policy or action disproportionately harms that class. http://www.inman.com/2013/06/18/disparate-impact-doctrine-troubling-property-owners-mortgage-lenders-and-employers/
Recently the Equal Employment Opportunity Commission and the Federal Trade Commission jointly released new guidance in the use of public records in pre-employment background checks. This action points to a greater scrutiny by the Federal government over the use of public records, especially with criminal histories.
Subsequently, heightened scrutiny can lead to more confusion amongst landlords and/or property managers in regards to the proper rental practices as well as the legal and lawful use of public records in tenant screening.
The Landlord Times gives a great example: “…a property management company has a policy of charging a set rental amount for the first three residents in a household, plus $100 per month for each additional resident. This policy, although applied equally to all applicants and residents, will have a disproportionately negative effect on families with children, and thus likely violates fair housing laws. Similarly, a policy of denying rental to everyone who has any criminal record may have a disparate impact on certain protected class groups (such as race, national origin, and disability).” http://blog.gosection8.com/could-you-be-in-violation-of-fair-housing-laws-without-even-realizing-it/
Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Times are changing in regards to the legal and lawful use of public records, such as Criminal Histories, in tenant screening. It is critical landlords and property managers understand disparate impact, the effect it can have on their renting practices and tenant screening policies.”
Without a clear and current tenant screening policy landlords and property managers may leave themselves open to potential litigation. Almeida states: “Working with a third-party tenant screening company is the best step a landlord can make. A third-party tenant screening company will stay current with the law and help the landlord stay compliant with the law.”
TenantScreeningUSA.com is a third-party tenant screening company with experienced employees committed to keeping their clients compliant within the laws governing tenant screening. Working with properties large and small, TenantScreeningUSA.com offers the tenant checks necessary to help landlords make wise leasing decisions.
