For community associations, HOA discrimination laws play a critical role in shaping how boards operate and make decisions. These laws exist to protect homeowners and residents from unfair treatment while holding HOAs accountable. Understanding them helps prevent costly lawsuits and fosters inclusive communities.
The Importance of Understanding HOA Discrimination Laws
Every HOA board has a duty to enforce rules and manage the community fairly and equitably. When board members fail to understand discrimination laws, they risk unintentionally creating policies that exclude certain groups. Even when their actions seem neutral, they can have discriminatory effects if they disproportionately impact residents in protected classes.
A clear understanding of the law is essential for board members. This is because violations can lead to lawsuits, government investigations, and damage to reputation. Compliance also helps ensure that communities remain welcoming and diverse.
Application to Condo Associations
It is important to note that HOA discrimination laws, both at the federal and state levels, also apply to condominiums. Condo boards must also comply with these laws and ensure fair treatment for all residents. Breaching these laws can lead to potential lawsuits.
Federal HOA Discrimination Laws
HOA discrimination laws at the federal level establish a baseline that applies across all states. These laws prohibit HOAs from discriminating against individuals in housing-related activities. Two primary federal laws directly impact HOAs: the Fair Housing Act and the Americans with Disabilities Act.
Fair Housing Act
The Fair Housing Act (FHA), enacted in 1968, is the most important federal law in this area. It prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. This applies not only to selling or renting homes but also to the enforcement of community rules.
Examples of FHA violations include:
- Restricting access to amenities like pools for families with children;
- Selectively enforcing rules against certain groups while ignoring others; and,
- Denying requests for reasonable accommodations, such as allowing a service animal in a pet-restricted community.
Association boards must be careful to apply rules consistently and avoid practices that target protected groups. Even subtle actions, like deciding a potential buyer “does not fit in,” can constitute discrimination.
Americans With Disabilities Act
The Americans With Disabilities Act (ADA) also plays a role in HOA operations, but in a more limited sense. While the ADA does not always apply to private residential communities, it does apply to common areas open to the public. Examples include rental offices or publicly accessible clubhouses.
An HOA may violate the ADA if it fails to make reasonable modifications or accommodations that enable individuals with disabilities to access its facilities. Wheelchair ramps, service animals, and accessible parking spaces are typical examples of accommodations. To stay compliant, HOAs should adopt a clear policy for handling accommodation and modification requests.
State HOA Discrimination Laws
While federal laws provide a crucial foundation, many states have their own fair housing protections. These laws supplement the FHA and often expand the list of protected classes. Both HOAs and condominiums are required to comply with federal and state laws.
- Alabama. Alabama enforces the Alabama Fair Housing Law, which mirrors federal protections. It prohibits discrimination based on race, color, religion, sex, disability, familial status, or national origin.
- Kentucky. The Kentucky Civil Rights Act includes housing provisions similar to the FHA. It prohibits discrimination in housing sales, rentals, and rule enforcement.
- North Carolina. The North Carolina Fair Housing Act aligns with federal law and covers the same protected classes.
- Ohio. Ohio Fair Housing laws expand protections to include military status and ancestry in addition to the federal categories.
- South Carolina. The South Carolina Fair Housing Law also mirrors federal protections and applies to housing providers, including HOAs.
- Tennessee. The Tennessee Human Rights Act prohibits housing discrimination based on race, color, creed, religion, sex, familial status, disability, and national origin.
- Virginia. The Virginia Fair Housing Law expands on federal law by adding protections for marital status, sexual orientation, gender identity, and elderliness.
Discrimination Over Familial Status
HOA discrimination laws also protect families with children and pregnant women under the category of familial status. Problems often arise when associations attempt to limit children’s use of amenities. For example, restricting access to a pool by labeling it “adults only” can be considered discriminatory unless the HOA qualifies as a senior housing community.
Associations can regulate safety by requiring adult supervision for children or restricting certain dangerous activities. That said, outright bans on children often cross the line into unlawful discrimination. Boards must carefully balance safety concerns with compliance under the FHA.
HOA Disability Discrimination: A Deeper Dive
HOA discrimination laws also strongly protect residents with disabilities. Boards must allow reasonable accommodations and modifications that enable disabled residents to have equal access to their homes and common areas.
- Reasonable Accommodation. This is a change in rules or policies. For instance, allowing an emotional support animal in a community with pet restrictions qualifies as an accommodation.
- Reasonable Modification. This involves physical changes, like installing a wheelchair ramp or adding grab bars in common restrooms.
Generally, the association is responsible for accommodations, while residents cover the expenses for modifications. There are exceptions, of course, when a request imposes an undue financial or administrative burden on the HOA.
When the board fails to address these requests properly, it can face lawsuits and monetary penalties. It is a good idea to establish a standard policy for reasonable accommodations and modifications. Furthermore, board members should enforce the policy fairly and consistently.
How to Stay Compliant and Avoid an HOA Discrimination Lawsuit
Whether intentional or not, HOA unfair treatment can often lead to costly disputes. To reduce risks, boards should adopt proactive strategies to ensure compliance. Here are the ways an association can comply with HOA discrimination laws.
1. Don’t Make Discriminatory Decisions
Board members should never approve or deny applications for sales, rentals, or rule enforcement based on a protected class. Even indirect comments or “gut feelings” can create liability if they suggest bias.
2. Don’t Enact or Enforce Discriminatory Rules
Boards should carefully review any rules that restrict access to amenities, display of religious symbols, or ownership rights to ensure compliance. Boards should also apply the rules consistently to avoid claims of selective enforcement.
3. Allow Reasonable Accommodation or Modification
The HOA board must take requests for accommodations or modifications seriously. It is best to establish a transparent process for homeowners to submit requests. Then, board members must evaluate these requests in good faith and respond in writing. Consistency is critical to avoid claims of unequal treatment.
4. Hire an HOA Discrimination Lawyer
Consulting a homeowners association discrimination lawyer can help boards understand the complexities of fair housing laws. An attorney can review governing documents, draft nondiscriminatory policies, and even defend the HOA if a claim arises.
5. Hire an HOA Management Company
Professional management companies can provide expert oversight and help boards enforce rules consistently. They also offer training on compliance and handle homeowner concerns in an unbiased way. Associations can reduce the likelihood of discriminatory practices by partnering with a management company.
Retaliation Claims in HOAs
Retaliation in HOAs occurs when a board takes action against a homeowner because that person has spoken up about their rights. These situations often come after a homeowner complains of discriminatory practices. The law makes it clear that punishing residents for this is just as serious as discrimination itself.
It is worth noting that retaliation can take many forms. A board might suddenly begin citing a homeowner for minor violations, delay or deny repair requests, or exclude them from meetings after they file a fair housing complaint. Even supposedly unnoticeable actions can be highlighted and deemed retaliatory.
The Fair Housing Act protects residents against this kind of action. The protection covers not only the person making the complaint but also anyone who helps them, such as neighbors who provide testimony or evidence.
Word of Advice
Compliance with HOA discrimination laws is mandatory. These rules serve to protect residents. Boards must understand the various laws that apply to their associations and adhere to best practices. In doing so, they can limit any legal risks that may arise.
Clark Simson Miller can assist HOAs and condo associations with legal compliance. Call us today at 865.315.7505 or reach out to us online to request a proposal!
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