What Happens If I Violate Fair Housing Law?

It is common for self-managing landlords to have concerns about violating laws unknowingly. The legal side of rental real estate is extensive and it can be difficult to keep up with changing local, state, and federal laws. Below we share a brief overview of fair housing law, and the penalties for violating it.  

What is the Fair Housing Act? 

The Fair Housing Act is a federal law that prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, and disability. Anyone who is involved in the rental real estate industry should be aware of the provisions of the Fair Housing Act, as well as the penalties for violating the law in an effort to best protect themselves, and their property. 

The Fair Housing Act applies to all types of housing, including rental properties and is intended to ensure that there is an equal opportunity for each unit. This means that landlords cannot refuse to rent to someone based on the criteria above, and must not impose different terms or conditions on tenants based on their protected characteristics.

Legal repercussions

If a landlord or property management company violates the Fair Housing Act, they may be subject to both civil and criminal penalties. These legal issues can be time consuming and costly, depending on the unique situation and if there are multiple offenses. The Department of Housing and Urban Development (HUD) is responsible for enforcing the Fair Housing Act, and they can initiate legal action against landlords who violate the law. 

You can learn more about the financial penalties, here. According to the Department of Housing and Urban Development, federal fines for violations are as follows:

• For a first violation, the landlord can receive up to a $21,663 penalty
• For a second violation within the next five years, the landlord can receive up to a $53,157 penalty
• For a third violation within seven years, the landlord can receive up to a $108,315 penalty
  
  

State fines for violations are as follows:

• For a first violation, the landlord can receive up to a $16,000 penalty
• For a second violation within the next five years, the landlord can receive up to a $37,500 penalty
• For two or more violations within seven years, the landlord can receive up to a $65,000 penalty

State law

It is important to review your state laws and regulations to ensure you are compliant. Landlords who violate the Fair Housing Act may also be subject to penalties under state law. 

The state of California has its own fair housing law, which provides additional protections for tenants and imposes additional penalties for landlords who violate the law. This includes the Unruh Civil Rights Act, which prohibits discrimination based on a wide range of factors, including race, religion, and sexual orientation.

Fair housing law in Ventura County 

Apart from the potential consequences on the federal and state levels, landlords who violate the Fair Housing Act may face penalties under local law as well. Specifically, in Ventura County, landlords should be aware of its unique fair housing law, which not only grants additional protections for tenants but also enforces supplementary penalties for any violations committed by landlords.

Reputation

Another potential consequence of violating the Fair Housing Act is damage to the landlord's reputation. If a landlord is found to have engaged in discriminatory practices, it can have a negative impact on their reputation and their ability to find and keep tenants. This can lead to decreased income and other financial consequences.

To avoid facing legal action or fines, it is important to be aware of changing laws and regulations, and take steps to follow them. In the case of fair housing law, this means treating all tenants fairly and equally, regardless of their race, religion, or any other protected characteristic. Discriminatory practices like refusing to rent to someone based on their race or religion should be avoided at all costs.

In conclusion, the consequences of violating the Fair Housing Act can be harsh. Landlords may face legal action, damage to their reputation, and penalties under both state and local law. By understanding and complying with the Fair Housing Act, landlords can steer clear of these penalties and ensure they offer equal housing opportunities to all tenants.