HUD “Quid Pro Quo” rule clarifies HOA duty to stop discrimination among residents

By Deborah Goonan, Independent American Communities

 

Earlier this year I told you about a proposed HUD rule to put an end to discrimination in Association Governed Housing. The rule is now effective, and was recently recorded in the Federal Register (see reference below).

The following article from the LA Times provides one example of how housing providers would be expected to deal with discriminatory harassment between residents. In this case, a tenant in an apartment community is the target of hate speech and vandalism to her car. But when she complains to the manager, she is told to “work it out” with her neighbor on her own.

However, under the new rule, these kinds of complaints can no longer be ignored by leaders of HOAs. Read on…

 

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Can a tenant’s ethnic slurs amount to housing discrimination?

www.latimes.com/business/la-fi-rentwatch-discrimination-20161105-story.html

Although the example above involves tenants, the situation could easily apply to two residents of a homeowners, condominium, or cooperative association, whether they own or rent housing. If a community manager or Association board stands on the sidelines and does nothing, the Association faces liability in the event of a Fair Housing lawsuit. And, by the way, HOA insurance policies tend to exclude coverage when the Association is on the losing side of a Fair Housing claim.

 

What the opponents say about HUD’s new rule

Now that the rule is clarified, I will share with you a few of the comments made by some Real Estate / HOA industry professionals this summer, when I posted an article on the then-pending rule on a public internet forum:

 

HUD has no basis or reason to get involved here, another example of Government over-reach. Be careful what you wish for, HOA’s will die financially and then NO ONE will be enforcing the covenants and restrictions of the community… want chaos? That is the unintended consequence of this over-reach by HUD. – a Reverse Mortgage Specialist, Finance of America Reverse – A Blackstone Company