HOA Discrimination Laws Explained: Preventing Complaints In Your Community

Like anyone else, homeowners associations must follow anti-discrimination laws. Knowing and understanding these laws are important in creating a harmonious community and promoting a sense of belonging.

Federal HOA Discrimination Laws

HOAs must navigate the numerous federal anti-discrimination laws. Doing this helps the association create a fair and friendly environment for every resident. These laws provide the foundation that outlines how HOAs and similar bodies must act and operate to prevent discrimination.

Fair Housing Act (FHA)

One of the most crucial federal anti-discrimination laws that involve HOA communities is the Fair Housing Act (FHA). It creates a foundation for most of the anti-discrimination legislation in the United States.

In place since 1968, the FHA fights discrimination in housing. It prohibits discrimination based on a person’s race, color, nationality, religious beliefs, sex, familial status, or disability.

HOA communities must follow this law. This also means that, when the HOA makes policies and decisions, they need to be sound and fair for people of all walks of life. It also requires HOAs to make accommodations for disabled individuals. If the HOA fails to do so, it may face severe penalties or lawsuits.

Americans with Disabilities Act (ADA)

Another federal law you should know and follow is the Americans with Disabilities Act (ADA). This law mainly covers public areas. However, it also applies to HOAs that run public facilities like pools, clubhouses, or gyms.

Under this law, HOAs need to have accessibility options for disabled homewoners. This may involve allowing and installing ramps, elevators, and ADA-compliant signages.

State-Specific Anti-Discrimination Laws

Most states enact local fair housing laws. These laws typically include broader protections. One notable example is South Carolina’s Fair Housing Law. It covers more protection for discriminatory actions based on race, religion, sex, nationality, physical or mental handicaps, or familial status. Given this, HOA board members need to know and understand the different nuances of their state laws to ensure compliance.

Staying Compliant With HOA Discrimination Laws

Your HOA needs to do more than just know and understand the law to comply with them. Compliance also involves implementing HOA policies that comply with these federal and state laws. Proper enforcement is needed to easily create an environment of trust and fairness.

Here are some tips for your HOA to follow:

Regularly Update Governing Documents

The HOA board must regularly reexamine your community’s policies to see if they align with updates to anti-discrimination laws. Many HOAs make the mistake of overlooking or even ignoring rules that are too restrictive. For instance, an HOA may have a policy that upholds a total ban on outdoor display, which may step on religious expression. Many also tend to overlook outdated language in their policies that are deemed exclusionary.

As a best practice, an HOA should work with legal counsel that can explain the laws plainly. This will help the HOA board identify any problematic clauses that need to be amended.

Provide Reasonable Accommodations

To create a more welcoming atmosphere for residents with handicaps, the HOA must allow reasonable accommodations. For this, the association should be more lenient in approving structural changes that improve accessibility. They must also be open to granting exceptions to strict pet regulations for service and emotional support animals.

Of course, all these accommodations must be made within reason. If your HOA denies such requests for accommodations without any valid reason, they might face the possibility of being sued.

Educate Board Members and Staff

Your HOA should organize comprehensive training for board members and staff to learn about anti-discrimination laws. Everyone involved in running the HOA must have the knowledge and tools to easily recognize implicit bias. They need to know the rights of protected classes and properly address discrimination complaints. To do this, your HOA may try collaborating with local fair housing organizations that can provide the training.

Implement Transparent Processes

There are many benefits that a transparent HOA enjoys. By having clear and consistent enforcement procedures and complaints handling, residents may eliminate doubts of bias and discrimination. For best results, the HOA should document all of its decisions with objective criteria. The HOA must also effectively communicate with its residents.

Engage Legal Counsel

Your HOA must have a legal counsel, specializing in laws related to running the association. They can help your board understand legislation and how to comply with them. Having a legal counsel can ensure that any action and policy follows all relevant laws.

Lessons from Notable Cases

Real-world examples demonstrate the importance of compliance and the consequences of falling short. By examining these cases, HOA boards can gain valuable insights into how to avoid similar pitfalls.

Tennessee HOA Denies U.S. Veteran Wheelchair Accommodations

Back in 2019, in Tennessee, a U.S. military veteran removed a wheelchair ramp from the house he was purchasing to avoid litigation threatened by a homeowners association. The HOA had threatened to sue the closing attorney if the sale was finalized with the ramp installed. The U.S. Department of Housing and Urban Development entered the scene and investigated the complaint.

California HOA Prohibits Religious Decor

Also, in 2019, a California condo owner filed a lawsuit against her HOA and property management company after they stopped her from putting a mezuzah on her doorframe. The HOA noted that it has community rules banning decorations, but she argued that the small religious scroll was essential to her faith.

The dispute ended in mediation with the California Department of Fair Employment and Housing (DFEH), resulting in a $40,000 settlement. Along with the payment, the HOA agreed to update its policies to allow religious displays on doors and doorframes.

The Legal and Financial Risks of Non-Compliance

The risks of failing to adhere to HOA discrimination laws go beyond legal penalties. They also affect the HOA’s reputation and the community’s overall well-being. Understanding these risks is essential for proactive compliance.

Non-compliance with anti-discrimination laws can result in:

• Legal action from residents, including HUD complaints or lawsuits.
• Financial penalties, such as fines, damages, and attorney fees.
• Reputational harm can diminish property values and community trust.

Proactive compliance is always more cost-effective than addressing issues after complaints arise.

Crafting an Inclusive Community

Creating a fair and welcoming environment should be at the heart of every HOA’s mission. By fostering inclusivity, HOAs can ensure that all residents feel respected and valued, contributing to a thriving community.

HOA board members have a unique opportunity to shape the culture of their communities. Prioritizing inclusivity and adhering to anti-discrimination laws fosters trust and harmony among residents, minimizes the risk of complaints, and enhances the community’s reputation.

Building Bridges

Preventing discrimination isn’t just about following the letter of the law. It’s about creating a community where everyone feels valued and respected. HOA boards can lead the way in cultivating vibrant, inclusive neighborhoods by staying informed, vigilant, and proactive.

Looking for assistance navigating HOA discrimination laws, why not have professionals help you? Check out our detailed online directory for your area’s best HOA management companies today!

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