As a landlord in Indiana, it’s crucial to understand and comply with the Federal Fair Housing Act (FHA). This federal legislation was enacted in 1968 and aims to eliminate housing discrimination based on different factors that individuals have no control over. 

All housing providers are required to abide by this law and avoid housing discrimination. Indiana residents are entitled to equal housing opportunity. Keep reading to learn more about fair housing in the Hoosier State.

Overview of the Fair Housing Act

The Fair Housing Act prohibits discrimination in any aspect of selling, renting, or leasing housing. For landlords, this means that you cannot discriminate against potential or current tenants during the screening process, setting rent, providing facilities or services, or in any terms and conditions of a lease. The Act is enforced by the U.S. Department of Housing and Urban Development (HUD).

Protected Classes in Indiana

Under federal fair housing law, the following are protected classes:

• Race
• Color
• Religion
• National origin
• Sex (including gender identity and sexual orientation)
• Familial status (familial status covers families with children under 18, pregnant women, and people securing custody of children under 18)
• Disability

Additional Protection Under Indiana Fair Housing Laws

In Indiana, all these federally protected classes are also taken into consideration. On top of these, Indiana also provides additional protection to ancestry.

Ancestryrefers to a person’s family lineage, which includes their ethnic background, descent, or heritage. This can relate to where a person’s forebears came from, their cultural history, or other characteristics associated with groups of people from particular regions or countries.

It aims to ensure that all individuals, regardless of their ancestry, have equal housing opportunity. Discrimination complaints based on ancestry can be filed with the Indiana Civil Rights Commission (ICRC), which investigates violations of state civil rights laws, including those pertaining to housing.

For landlords, this means that any decision-making process in rental practices, such as advertising, tenant screening, leasing, and evictions, must be free of bias related to a person’s ancestry. This includes avoiding discriminatory remarks, advertisements, and policies that could be construed as unfavorable to someone based on where they or their family originated.

Here are a few examples of what might constitute unlawful discrimination based on ancestry:

• Advertising: Using phrases like “Prefer American background” or “Ideal for European immigrants” in rental listings is discriminatory as it suggests a preference based on ancestry.
• Tenant Screening: Choosing not to rent to someone because they have a familial background from a particular country that the landlord has a bias against.
• Interaction and Conduct: Making derogatory comments or actions towards tenants that reflect bias against their cultural heritage.

How to Ensure Compliance with the Fair Housing Act

Application and Screening Process

As a housing provider, you are responsible for ensuring that your application and screening processes are free from questions or language that could be considered housing discrimination. This means:

• Avoiding questions that directly or indirectly relate to any of the protected classes.
• Using consistent criteria for all applicants regarding credit checks, references, and rental history.
• Ensuring all advertisements for rental properties are neutral, avoiding any language that could imply a preference or limitation for certain groups of people.

Reasonable Accommodations and Modifications

For a tenant with a disability, landlords are required to make reasonable accommodations in rules, policies, practices, or services when such accommodations are necessary to provide them an equal opportunity to use and enjoy a dwelling. 

Examples include:

• Allowing service animals regardless of pet policies.
• Providing a reserved parking space near the entrance for a tenant with mobility issues.

Landlords are also required to permit a tenant with a disability to make reasonable modifications to their living environment at the tenant’s expense, such as installing grab bars in a bathroom.

Compliance and Enforcement

Failure to comply with the Fair Housing Act can lead to significant legal consequences, including fines, damages, and attorney fees. Enforcement typically begins with a complaint by a tenant, which can be filed with HUD. Investigations may follow, and if discrimination is found, penalties can be severe.

Consider a scenario where a potential tenant with visual impairments requests to fill out the rental application in an alternative format. Under the FHA, the landlord should provide a reasonable accommodation, such as offering the application in large print or assisting the applicant in filling it out verbally.

Another example might involve a complaint where a housing provider consistently requires higher deposits from families with children, claiming concerns about potential damage. This practice could be seen as discrimination based on familial status.

Best Practices for Providing Fair Housing

To ensure compliance with both federal and state landlord-tenant laws, Indiana landlords should:

• Revise Rental Materials: Check all advertising and application materials to ensure they do not contain discriminatory language or implications.
• Implement Objective Criteria: Establish clear, non-discriminatory criteria for tenant selection, lease enforcement, and evictions, and apply these uniformly to all applicants and tenants.
• Maintain Documentation: Keep thorough records of all interactions with prospective and current tenants, application processes, and the reasoning behind tenant selection decisions.

Recognized Exemptions to the Fair Housing Act

While the FHA covers most housing-related activities, certain exemptions exist that might affect some Indiana landlords:

• Owner-occupied Buildings with Four or Fewer Units: If you live in one of the units and the building has four or fewer units, you are exempt from some FHA provisions. However, discriminatory advertising is still prohibited.
• Single-family Housing Sold or Rented without a Broker: Owners selling or renting their single-family home without the use of a broker are exempt, provided they do not own more than three such homes at one time. Again, discriminatory advertising restrictions still apply.
• Housing Operated by Religious Organizations: Religious organizations can give preference to members of their religion, provided the organization does not discriminate otherwise in membership.
• Private Clubs: Private clubs that limit occupancy to their members may lease residences as long as the lodgings are not commercially operated.
• Senior Housing: There are exemptions for housing that meets federal criteria for senior housing, including 55 and older communities.

Conclusion

Understanding and complying with the Fair Housing Act is not just a legal obligation for landlords in Indiana; it’s a critical component of professional and ethical property management. 

By ensuring your practices are fair and inclusive, you not only adhere to the law but also contribute to the broader effort of eliminating housing discrimination. This fosters a diverse, inclusive community and enhances your reputation as a fair and law-abiding landlord.

If you need help, it’s best to hire a reputable property management company that can help you navigate this process. Call Specialized Property Management Indianapolis and we’ll be happy to help you.

Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.