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…
Can a tenant’s ethnic slurs amount to housing discrimination?
http://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
Ridiculous. Apparently HUD doesn’t realize this is what laws, including ADA, and the police are for. Now that HOA boards are expected to administer the nanny state’s edicts, will they be expected to wipe a resident’s nose after she sneezes, or carry in her groceries, too? – a Real Estate investor and speculator
This interpretation by HUD of the Fair Housing Act is a massive overreach that adds to their already extensive interpretation of a fundamentally simple law. As a rational and practical matter, an HOA cannot be responsible for neighbor-to-neighbor relations. An obvious barrier is that an HOA typically has no power to regulate conduct by individuals within the community that may be in violation of the FHA. I suspect this is an attempt by HUD to transfer the enforcement burden to HOAs, just as municipalities have transferred the burden for maintaining basic infrastructure to HOAs. – a certified Community Association Manager, member of CAI state chapter
Ah, don’t you just love the irony in these comments?
First of all, the revised “Quid Pro Quo” rule only requires intervention in disputes related to fair housing violations directed at a protected class – race, color, national origin, religion, sex, disability and the presence of children (familial status). The Association is not expected to intervene in each and every neighbor to neighbor dispute.
The Association-Governed Housing industry preaches that it is the duty of the HOA board or manager to strictly enforce aesthetic standards. Typically this is accomplished by walking the building or driving a golf cart around the community with clipboard and camera in hand, in search of unapproved window coverings, flags that are too large, campaign signs that don’t meet strict size requirements, grass that is too long/brown/has a few weeds in it. You know, all that vitally important stuff that might harm property values.
So why can’t HOA Boards and Managers prioritize their duties to more important matters, such as acknowledging discrimination, as well as enforcing sanctions against disruptive or abusive residents that cause a nuisance or potential danger?
I guess it’s much easier – and potentially more lucrative – to enforce rules and restrictions over petty issues than serious threats to health, safety, and well-being.
Thankfully, there are many other professionals that agree HUD’s new anti-discrimination policy is long overdue.
Reference:
HUD Final Rule clarifying the responsibility of Association Governed Housing Communities to take action to curtail discrimination: