Property Management Blog

Arizona Fair Housing Act: an Overview

System - Monday, May 30, 2022
Property Management Blog

The Fair Housing Act is also known as Title VIII of the Civil Rights Act of 1968. It’s a federal law that bans all forms of housing discrimination when it comes to renting, mortgage lending, and home selling on the basis of certain protected classes.

The Fair Housing Act was passed by Congress and signed into law by President Lyndon Johnson in 1968. The act was one of three prominent pieces of legislation passed during the Civil Rights Movement.

As a landlord, it’s important that you familiarize yourself with this act in order to avoid discriminating against prospective or current tenants!

The following is a basic overview of the Arizona Fair Housing Act.

What Are Protected Classes Under the Arizona Fair Housing Act?

Basically, a protected class refers to certain groups of individuals protected by anti-discrimination laws. In regards to the Fair Housing Act, protections may exist at both the federal and state level.

As Arizona is yet to pass state-specific protections, the only protections available are those at the federal level. These are: 

  • Race 
  • Color
  • Disability
  • Religion
  • Nationality
  • Gender
  • Familial status

What Are Some Common Examples of Landlord Discrimination?

Below are some examples detailing how landlords can discriminate against renters.

Race

Racial discrimination still remains one of the most common forms of tenant discrimination.

fair housing act arizona

For instance, stating in your rental ad that white tenants are preferred is discriminatory towards individuals of other races.

Religion

Religion, just like other protected classes, shouldn’t be a qualifying criterion for tenants. Whatever religion a tenant follows shouldn’t be considered as part of your tenant selection process. 

It is discriminatory for a property listing to state – “Christians preferred” or “a safe Christian community.”

Gender 

As a landlord, you cannot reject a tenant's application based on their gender. Even with well-intentioned policies, you may still find yourself on the wrong side of the law. 

Essentially, you cannot enforce policies that restrict tenancy based on an individual's gender identity.

Nationality

Discrimination on the basis of nationality is also illegal, whether or not it is deliberate. An example of how this can occur is requiring a prospective tenant to show proof of their immigration status or proof of their citizenship.

Familial Status

Some landlords may not like the idea of having children living on their properties due to concerns about noise or additional wear and tear on the property. 

fair housing law arizona

However, familial status is a protected class under the Fair Housing Act and, therefore, it is illegal for a landlord to turn away a prospective tenant who has or is expecting children.

Color 

The Fair Housing Act requires that you treat all people equally, regardless of their skin tone. If you respond quickly to an emergency request from a white tenant but take ages to respond to one made by a Black tenant, it can be considered discriminatory. Consequently, the Black tenant may seek legal redress.

Disability

This is also a protected class under the Arizona Fair Housing Act. You cannot discriminate against a tenant based on a mental or physical disability.

Other Discriminatory Acts

The above aren't the only ways that housing discrimination can occur in the state of Arizona.

Other ways you can discriminate against renters include:

  • Refusing to rent your home to a prospective tenant based on any protected class
  • Charging a larger security deposit based on a tenant’s race
  • Saying your rental home is unavailable when it is available to rent
  • Harassing your tenant
  • Breaking the lease without just cause

Can a Landlord Be Penalized for Violating the Fair Housing Act?

Of course!

Fair Housing Act penalties often vary based on where the discrimination suit has been filed. The penalties may include punitive fines and damages and attorney fees.

If you’re found guilty of a fair housing violation, the following are the penalties you may expect. 

  • Being charged by the U.S. Department for Housing and Urban Development
  • Being held responsible for your tenant’s out-of-pocket expenses while they seek alternative housing
  • Being charged for non-economic damages, such as those arising from mental anguish, humiliation, and or psychological injuries

FHA arizona

Civil penalties depend on the prior history of violation. If you’re a first-time offender, you may be levied a penalty of up to $16,000. However, if you’re a repeat offender, then you may be fined a penalty of up to $65,000 or jailed for a maximum of 7 years.

Does the Fair Housing Act Apply to All Types of Rental Properties?

The Fair Housing Act covers most types of housing, including single-family homes, multi-family homes, condos, and even commercial properties. However, the following residential units and facilities are exempt from this act.

Owner-Occupied Housing

This applies to a multi-family property of 2 or 4 units, in which one of the units is occupied by the owner.

Single-Family Housing

The Fair Housing Act does not apply to a single-family house if the owner doesn’t own more than 3 units at one time.

Private Clubs with Memberships

These are allowed to restrict access based on their memberships so long as they don't offer housing to the general public.

Religious Organizations

If a religious organization sponsors housing, then it may be able to restrict housing access to its members as long as it doesn't discriminate in its membership policies.

Seniors Housing

In most cases, housing communities for the elderly are also exempt from the Fair Housing Act.

Bottom Line

Treating your Arizona tenant fairly and with respect is key. Not only will that boost your reputation and credibility, but it can also help prevent potential legal issues with your tenants!

For expert help in Landlord-Tenant Law, reach out to SGI Property Management! We’re a full-service property management company that manages over 500 properties in Phoenix and the surrounding areas.

Disclaimer: This blog is not intended to replace the services or information provided by a licensed attorney. Please note that laws are subject to change and this article may not be updated at the time you read it. For more information on Fair Housing Laws please reach out to a licensed and qualified attorney.