As a Colorado landlord, discriminating against your residents based on certain characteristics, such as race and color, is a violation of federal law.
The Fair Housing Act (FHA) makes it illegal for housing providers to show preference or limitation based on a protected class.
You should treat renters fairly, equally, and respectfully in all interactions you have with them. Including, when advertising your unit, screening prospective tenants, and responding to repairs.
The following is a comprehensive guide on what the Fair Housing Act entails for Colorado landlords.
What Is the Federal Fair Housing Act?
The Federal Fair Housing Act was passed by Congress and signed into law on April 11, 1968, by President Lyndon Johnson.
It forbids discrimination in most housing-related activities, such as renting, selling, buying, or financing, and also influences state-level regulations like security deposit laws.
It applies to housing providers such as landlords, real estate agents, property managers, lenders, and brokers. The Federal Fair Housing Act applies to all U.S. states and prohibits housing discrimination based on seven protected classes: race, sex, national origin, color, disability, familial status, and religion.
The U.S. Department of Housing and Urban Development (HUD) enforces the Fair Housing act at the federal level.
What Does the Fair Housing Act in Colorado Entail?
Colorado, just like nearly all other states, has its fair housing laws that have expanded the list of protected classes.
It was the first in the country to pass statewide fair housing laws in 1959. This was just 9 years before President Lyndon Johnson signed the Federal Fair Housing Act.
In addition to the 7 Fair Housing Act’s protected classes, the Colorado Fair Housing Law also includes marital status, creed, ancestry, sexual orientation, and source of income to the list of protected characteristics.
Examples of Housing Discrimination in Colorado
The following are some of the actions that can be considered discriminatory under Colorado fair housing and rental laws.
- Telling a prospective tenant that your vacant unit isn’t available for renting because of their race, color, familial status, disability, or sex. If you offer the property to a person of a different characteristic, the other tenant can sue you for discriminating against them.
- Not renting out your property on a bona fide offer. If an applicant meets your qualifying criteria and you still refuse to rent out your property to them that may qualify as discriminatory behavior.
- Providing a person with different terms and conditions. For example, charging different rent amounts depending on the familial status, national origin, race, disability, or religion of the renter would violate the Fair Housing Act.
- Failing to provide disabled renters with reasonable accommodations. For example, not allowing a disabled tenant to keep their service animal because you don’t allow pets into your property.
- Using discriminatory statements in your rental ad. It would be unlawful to use statements like “No minorities allowed,” “No Muslims allowed,” “Females Only,” “No section 8,” or “Must be able to climb stairs.” Any of these statements can set you up for trouble.
- Asking discriminative screening questions that go again Fair Housing policies. You’d be violating the Fair Housing Laws by asking residents questions like: Where were you originally born? Are you a Christian? Do you plan on getting any kids? Are you on any public assistance program?
Who Enforces the Colorado Fair Housing Act?
In Colorado, it’s the state’s Department of Regulatory Agencies, and Civil Rights Division (CCRD) that handles fair housing complaints. Complainants can file their cases either online, by mail, or by phone.
The CCRD will then investigate the complaint to determine whether there is probable cause for housing discrimination. This process can involve witnesses, property inspection, and review of relevant documentation.
As a Colorado landlord, it’s important to note that fair housing violations can result in significant fines. Including, punitive damages, compensatory damages, and civil penalties. Civil penalties, in particular, can be up to $16,000. Subsequent violations within seven years can be north of $65,000.
What Is Exempt Under the Fair Housing Act?
A few limited exemptions to the Fair Housing Act exist. They are as follows.
- Owner-occupied dwellings. This exemption applies to owners who own a building that has four or fewer units and occupy one of them. Under the Fair Housing Act, you can choose which tenant lives in the other units, even if that means discriminating against them based on a protected class. That said, you cannot use discriminatory language when advertising the unit. Neither can you refuse to make a reasonable accommodation for a person with a disability.
- Single-family homes. Any single-family home that the owner rents out on their own may qualify for Colorado Fair Housing law exemptions.
- Housing is operated by private clubs or religious organizations. These can limit occupancy to only their members.
What Can Landlords in Colorado Do to Stay Compliant?
As a Colorado landlord, staying compliant with fair housing laws is essential to avoiding housing discrimination and achieving success. Remember, property management is part of the service industry, and how you treat a person can either harm or enhance your investment.
The following are some of the things you can do to ensure you comply with the federal law:
- Advertise your property the right way. Which means not expressing any preference or limitation to a particular protected characteristic. Use statements that are inclusive and avoid stereotypes to ensure compliance with Fair Housing guidelines.
- Accommodate any person with a disability. For example, by modifying your policies or providing assistive devices.
- Ask the right screening questions. Since you’re trying to look for that dream tenant, there are certain questions you shouldn’t ask prospective tenants. Specifically, avoid any questions that touch on a prospective tenant’s race, color, national origin, religion, or any other protected class.
- Hire a property manager. Understanding the Fair Housing laws in their entirety and keeping up with changes can be arduous. And that’s where a property manager can come in handy.
Conclusion
Now you understand what the Fair Housing Act in Colorado entails. By knowing the prohibited housing practices, landlords can better protect their rental homes. If you have a question or need the expert help of a real estate professional, look no further than Kokopelli Real Estate.
We are full-service real estate and Grand Junction property management specialists. We also serve the areas of Mesa County and the surrounding Western Colorado areas. Get in touch to learn more!