Texas Fair Housing Act
Finding a safe and suitable home is a fundamental right for everyone. However, discriminatory practices have historically denied certain groups equal access to housing opportunities. To address this, the Fair Housing Act was introduced as a federal law that extends its protection to all states, including Texas.
As real estate agents, it's crucial to understand the Fair Housing Act, a fundamental piece of legislation that promotes equal opportunity and protects the rights of all Texans. By understanding the Act's core principles, history, and implications for your work, you can provide equitable service to all clients and contribute to the creation of inclusive communities. In this blog, we’ll delve into the key aspects of the Fair Housing Act and its implications for your role as a Texas real estate agent.
Texas Fair Housing Act
The Fair Housing Act (FHA) protects against discrimination in various housing-related activities, including:
- Renting or buying a property
- Applying for a mortgage
- Seeking housing assistance
- Engaging in other housing-related activities
However, in Texas, there is a state-level fair housing law known as the Texas Fair Housing Act (TFHA), which shares many similarities with the FHA.
While the TFHA closely aligns with the federal Fair Housing Act, there are two notable distinctions:
- Texas has its own specific procedure for handling complaints related to fair housing violations.
- The TFHA offers slightly more explicit guidelines compared to federal legislation.
The Texas Fair Housing Act is enforced by the Civil Rights Division of the Texas Workforce Commission (TWC), while the Texas Department of Housing and Community Affairs (TDHCA) plays a role in developing fair housing options.
Various cities in Texas may have different fair housing laws, so it's advisable to reach out to your city authorities for information on regulations specific to your location.
What Does the Texas Fair Housing Act Cover?
Under the Texas Fair Housing Act (TFHA), your rights are protected in the following situations:
- Renting or buying a home
- Renting or buying vacant land
- Taking out a mortgage
- Buying property insurance
Additionally, the Fair Housing Act (FHA) prohibits discrimination in housing based on the following factors:
- Race
- Color
- Religion
- Sex (including gender identity and sexual orientation)
- National origin
- Familial status
- Disability
These laws ensure that individuals are not subjected to discriminatory practices based on these protected characteristics, promoting equal access to housing opportunities for all.
Housing Discrimination Based on Familial Status
When it comes to protected groups, some, like race or religion, are easily understood. However, others, such as familial status, can be more complex to grasp.
Familial status under Texas housing laws encompasses various family situations, and discrimination based on this status is strictly prohibited. Here are some examples of protected familial statuses:
- Being pregnant
- Being a single parent
- Having children under 18
- Seeking custody of children under 18
Housing Discrimination Based on Disability
A disability, as defined by the Act, refers to a physical or mental condition that significantly restricts at least one major life activity. Here are some examples of disabilities under the Texas Fair Housing Act:
- Using a wheelchair
- Having a chronic illness
- Experiencing PTSD
The Act extends its protection to anyone who resides in your home, including children, spouses, adult relatives, or individuals who visit you.
What Does the Texas Fair Housing Act Not Cover?
While the Texas Fair Housing Act aims to assist individuals seeking a new home, however, it does have certain loopholes that allow for potential discrimination based on the following factors:
- Sexual orientation: Texas lacks specific fair housing laws protecting against discrimination based on sexual orientation.
- Marital status: Surprisingly, landlords in Texas can reject applications from both single and married individuals.
- Drug or illegal substance addiction: While addiction can impair lives, it is not considered a legal disability, and individuals with known drug addictions are not protected under the TFHA.
- Specific criminal convictions: In Texas, rental or purchase applications can be denied based on convictions related to drug production or distribution.
- Threat of harm: Landlords or sellers can refuse to rent to disabled individuals if their presence poses a direct threat to neighbors' health, safety, or property.
- Income source: Mortgage lenders can reject loan requests if they believe the applicant's income is insufficient or if there is a perceived risk of job loss affecting their ability to make payments.
The Texas Fair Housing Act applies to most housing, but there are exceptions for:
- Owner-occupied structures with up to four units
- Single-family homes rented or sold without a broker
- Properties operated by organizations and private clubs exclusively for members
Additionally, the rules prohibiting discrimination based on familial status may not apply to housing developments designated for people aged 55 and older, meeting specific criteria.
While the Texas Fair Housing Act provides significant protections, it is essential to be aware of these loopholes and exceptions when navigating the housing market in Texas.
Fair Housing and Equal Opportunity
Equal opportunity housing, also known as equal housing opportunity, emphasizes the principle that everyone should have an equal and fair chance in property financing decisions. These laws also grant individuals the right to rent accommodations in their desired locations, provided they can afford them.
The Office of Fair Housing and Equal Opportunity (FHEO) operates within the U.S. Department of Housing and Urban Development (HUD). FHEO is responsible for enforcing federal fair housing laws, implementing policies, and ensuring that all Americans have equal access to housing options of their choice.
The fundamental principle of fair housing and equal opportunity applies to everyone. As a buyer, you have the right to choose your place of residence without facing discrimination based on protected characteristics. As a seller, it is essential to avoid discriminatory practices and offer an equal opportunity for all potential buyers to purchase the house they desire.
Fair housing and equal opportunity are fundamental rights that should be upheld for everyone, promoting inclusivity and ensuring fairness in the housing market.
Fair Housing Violation
Those who violate the Texas Fair Housing Act, can face severe penalties for doing so.
If you believe you have been subjected to housing or rental discrimination, you have two courses of action to address the situation:
- You can file a complaint with the Texas Workforce Commission (TWC)
- You can sue the other person in civil court
TWC Penalties
The Texas Workforce Commission (TWC) has the authority to require the defendant to bear the expenses incurred by you, such as court costs, attorney fees, and other related fees. Additionally, the defendant may be liable for civil fines, which can include:
- $10,000 for one violation
- $25,000 for two offenses in the last five years
- $50,000 if they’ve committed two or more offenses in the last seven years
These fines are paid to the Texas comptroller, who serves as the state's “Chief Financial Officer.”
Civil Court Penalties
In addition to potential injunctive or restraining orders, you may be eligible for financial compensation, reimbursement of legal fees, and coverage of court expenses. Furthermore, for a first offense, the offender may face penalties of up to $50,000, which can increase to $100,000 for a subsequent offense.
Criminal Penalties
Housing discrimination can lead to criminal consequences in addition to civil penalties. In Texas, for example, using force or threats to obstruct your rental or purchase of a property is considered a Class A misdemeanor. This offense can result in a fine of up to $4,000 and a jail term of up to one year.
Avoid Housing Discrimination in Texas
Understanding the Texas Fair Housing Act and its implications is crucial for real estate agents. While the Act provides important protections against housing discrimination, it's important to be aware of its limitations and potential loopholes. By familiarizing yourself with the Act's provisions and staying informed about any local fair housing regulations, you can ensure that you provide equal and fair treatment to all clients.
Remember, promoting fair housing practices not only upholds the law but also contributes to a more inclusive and equitable real estate industry. Stay informed and help create housing opportunities that are accessible to everyone by enrolling in one of our online real estate courses today!
