The Fair Housing Act Arizona aims to provide equal treatment to everyone who needs to access housing options in hopes of reducing housing discrimination. The Arizona Fair Housing laws help prevent any discrimination in housing practices in any real estate transaction.
All individuals and entities, including housing providers, involved in a housing transaction should abide by the rules and regulations under the Fair Housing Act to avoid fair housing discrimination under federal laws.
The Creation of the Fair Housing Act
The Fair Housing Act is a set of laws intended for real estate providers, such as landlords, sellers, lenders, insurance companies, appraisers, real estate professionals and brokers, agents, and mortgage providers with the goal of ending housing discrimination.
These Arizona Fair Housing laws set standards that should prevent any form of discrimination against all types of buyers, tenants, and mortgage borrowers. The purpose of Arizona Fair Housing is to provide equal opportunities for every American to find a place to live in.
Two of the first attempts to address housing discrimination were the Rumford Fair Housing Act of 1963 and the Civil Rights Act of 1964. In 1968, the FHA was established one week after Martin Luther King Jr.'s passing. This was the real groundbreaking legislation in the Civil Rights Act that created a fundamental change in the real estate industry.
Protection Under the Fair Housing Act
The Arizona Fair Housing Act is a federal law that prohibits discrimination in any housing transaction. These seven classes are protected by the laws:
Race
Color
National origin
Familial status (having minor children, being pregnant)
Sex
Religion
In Arizona, the protected classes under the Fair Housing laws are the same as the federally protected classes mentioned above. Arizona landlords must be careful and exercise caution when approving or rejecting an application from prospective tenants belonging to the protected characteristics or classes under housing laws. You can't reject tenants simply because of their national origin or marital status for example.
Eliminate identified barriers to make your housing feel like an accepting place. For example, to avoid discriminating against those of a different national origin, do not ask anything about birthplace! Provide wheelchair accessible housing and other reasonable accommodation to avoid discriminating against disabled tenants. For things like familial status and sexual orientation, just don't mention them.
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It is important for landlords and housing providers to set the same standards and requirements for each and every applicant to avoid committing any discrimination under the Arizona laws. Avoid housing discrimination complaints by following the law!
Landlords should not use their personal preferences and prejudices when it comes to screening applicants. If landlords reject an applicant, they should have valid reasons for doing so which does not include things like refusing reasonable accommodations.
Some common reasons for denying an application are as follows: the applicant was not able to meet the financial requirements, has a poor credit score, has a criminal record, or was involved in a previous eviction case.
However, to deny housing based on skin color or race is considered discrimination under housing laws. Landlords are also not allowed to have a different set of requirements for a certain class of applicants.
For example, you cannot require an applicant with a disability to submit a credit report if you do not require the same from other applicants.
To avoid committing any unintended violation, having a clear and consistent tenant screening process is essential. Make sure that your process is in compliance with the FHA and ensure awareness.
The Three-Part Approach to Ending Housing Discrimination
The protected classes mentioned above should not be discriminated against when it comes to finding housing opportunities. Following Fair Housing resolves housing discrimination complaints before they happen and eliminate identified barriers.
The FHA has a three-part approach to prevent any form of discriminatory practices in the following transactions:
1. Home Renting and Selling
Homesellers and landlords should be fair in treating buyers and tenants. Refusing to rent or sell a property to any individual belonging to any of the protected classes without valid reasons may be considered a violation of the FHA.
Any violation of housing laws is punishable by law. When buying or renting a property, make sure to avoid the following:
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- Refusing to rent or sell a property, or even refusing to negotiate for housing without legitimate reasons
- Telling the buyers or renters that the housing is no longer available when in truth, it is not yet rented out or sold
- Denying an individual to obtain access to housing without acceptable reasons
- Setting different terms or conditions in home selling or renting
- Providing different reasonable accommodations or amenities to a certain class of individuals
- Not allowing individuals under the protected class to participate in housing-related services such as an open-house or multiple listing service
- Convincing property owners to sell at a cheaper price because of the fear of any members of the protected class moving into the neighborhood
2. Mortgage Lending
Banks, lenders, and other mortgage providers are also required to abide by the Fair Housing law. These financial institutions are required to treat every borrower fairly as housing providers as part of housing rights.
This means that they should have the same set of requirements for all borrowers, regardless of whether they belong to a protected class. Here are the discriminatory practices involved in mortgage lending:
Refusing applicants to apply for a mortgage loan without valid reasons
Setting different terms or conditions on the loan, property insurance, including interest rates, fees, and requirements
Using discriminatory practices in appraising the property
Not providing sufficient information about the loan in order to discourage the borrower from applying
3. Other Illegal Activities
Aside from what was mentioned above, anyone involved in a housing transaction should be careful when dealing with clients. Here are the other circumstances you should consider where discriminatory practices are common:
- Advertising the property in a way that encourages or discourages a certain class from applying (For example, you include a preference for a person with a certain qualification or deliberately exclude a protected class)
- Threatening or interfering with any person’s rights to fair housing
- Charging a higher security deposit for those protected under the FHA
Exemptions From the Fair Housing Act
Some cases may be exempted from the FHA, including the following:
Unbrokered single-family homes for rent or for sale
Four-unit or less owner-occupied homes
Members-only private organizations or clubs
How Can Landlords Avoid Accusations of Discrimination
As a landlord in Arizona, you are mandated to abide by the Fair Housing law. To avoid being accused of practicing housing discrimination against any of the protected classes under Fair Housing, you should:
Avoid using any discriminatory language in your marketing materials. When advertising your property, make it inclusive, so everyone has equal opportunities to apply.
Be consistent with your requirements and tenant screening process. Do not require different documents, information, and fees from a different applicant when you do not require the same for everyone.
Be consistent with the terms and conditions of the lease and offer the same accommodations to all tenants.
Bottom Line
If you are not comfortable doing this on your own as housing providers, you can work with a professional property manager who is knowledgeable about the Fair Housing law and gain legal assistance. Service Star Realty knows the intricacies of the Arizona legal system, and we are happy to help you manage your rental.
Service Star Realty
2929 East Camelback Road #119, Phoenix, AZ 85016
(480) 426-9696
