What Is Equal-Opportunity Housing?

What does equal-opportunity housing mean?

Equal-opportunity housing is the idea that all people should be given the same chances and rights when it comes to choosing housing. It means that every person has a right to fair judgment and treatment when it comes to housing and mortgage financing options.

Mortgage discrimination and rental discrimination are strictly against the law. An example of discrimination and unfair treatment is when a property manager refuses to rent a condo or apartment to a single woman but will rent it to a single man.

Federally protected classes under the Fair Housing Act of 1968 include individuals and families who are discriminated against based on any of the following characteristics:

• Race
• Color
• National origin
• Religion
• Sex (including sexual orientation and gender identity)
• Familial status
• Disability

One ConsumerAffairs reviewer from Minnesota felt they were being discriminated against due to their age. At 63 and financially able to buy a home, they felt the underwriters were making the process take a lot longer than it should have been.

“Once I said ‘Hey gang, does this sound like Age Discrimination to you?’, then things got A LOT better,” they said. “Magically, my mortgage was quickly approved and processed.”

» MORE: Best mortgage lenders for first-time buyers

How to identify equal-opportunity housing providers

To identify real estate companies that support equal housing, you can check for a fair housing certification. This may be from a nationwide organization, such as the National Association of Housing and Redevelopment Officials’ Certified Specialist of Fair Housing credential, or at the state level, such as the Fair Housing Champion certification from the Delaware Association of Realtors.

Additionally, a company’s website should display a statement or disclaimer text about equal housing. Lenders committed to equal housing opportunities will often identify themselves in advertisements or on their websites as an “equal housing lender.”

You can also look for the U.S. Department of Housing and Urban Development (HUD) equal housing opportunity logo — which looks like a house icon containing an equals sign — on a company’s website or promotional materials. Although there are no formal criteria to display this symbol, it helps real estate and lending professionals self-identify as supporters of housing for all.

Equal-opportunity housing laws

Equal-opportunity housing laws were created to make sure every neighborhood in the U.S. is a place of opportunity and to prevent segregation and discrimination.

Equal housing law is enforced and administered by the Office of Fair Housing and Equal Opportunity (FHEO), an office within HUD. HUD received enforcement responsibility by the Fair Housing Act.

Today, the Fair Housing Act covers apartments, mobile homes, condos, houses and vacant lots that will be used for housing. The law applies to property owners, rental managers, real estate agents, landlords, developers, banks, builders and individual owners who are renting or selling their property.

It is designed to protect buyers and renters of property from discrimination by landlords, sellers or financial institutions. It makes it unlawful and illegal for those entities to refuse to sell, rent or provide funding for a dwelling based on factors such as race, color, religion and sex.

Equal-opportunity housing laws for renters and homebuyers

In the homebuying and rental processes, unfair treatment and discrimination may occur in ways such as:

• Creating discriminatory rental or home sales advertisements
• Refusing to rent or sell to specific people, including minority communities and families with children
• Falsely denying that housing is available for inspection, rental or sale
• Lying about rental vacancies
• Denying facilities or other benefits and amenities to renters or buyers in protected classes

Additional protections under state and local fair housing laws

You likely have protections beyond the federal level, as U.S. states and jurisdictions may have their own fair housing laws.

In Maryland, for example, fair housing protections include military status and source of income. Certain cities and counties within the state have even more protections spelled out, such as creed and physical appearance.

Check with your state’s association of Realtors, fair housing agency or the jurisdiction where you plan to rent or buy to learn if they have additional fair housing protections in place.

What is the Equal Credit Opportunity Act?

The Equal Credit Opportunity Act (ECOA) is a federal law to further protect individuals against financial discrimination. This law applies to all financial institutions, including credit card lenders, banks and mortgage loan originators.

The ECOA prevents lenders from discriminating when approving loans or setting terms.

The ECOA prevents lenders from making loan decisions based on your race, religion, color, national origin, marital status, sex, age or whether you get income from a public assistance program such as Social Security or Supplemental Security Income.

“In regards to women and mortgages, the ECOA mandated that women could establish credit in their own name, which allowed them to build credit for purchases — including homes,” said Bobbie Wasserman, the founder of Single Lady Estates, which supports women throughout the homeownership life cycle. “Prior to the ECOA, women could buy homes, but it would be dependent on a supportive employer or family member.”

» MORE: What credit score is needed to buy a house?

Who benefits from equal-opportunity housing?

Everyone benefits from equal-opportunity housing in the U.S. Potential homebuyers and renters cannot be discriminated against based on race, color, religion, age, gender, sexual orientation or marital status.

Giving families the chance to live in high-opportunity neighborhoods can improve residents’ lives and well-being, especially children, by giving them unfettered access to high-quality schools, health care services, youth programs and positive and healthy peer-group influences.

Fair housing is also good for business, the economy and the community. Discrimination and unfair practices distort the marketplace and keep qualified homebuyers from accessing reasonable housing opportunities, which denies neighborhoods the benefits of diversity.

How is fair housing enforced?

As part of HUD, FHEO leads the enforcement of fair housing laws in the U.S. It investigates housing discrimination claims filed by individuals and families.

If you think your housing rights have been violated, you have the right to file a complaint with FHEO. The office will investigate your claim and help the parties come to an agreement. If that’s not possible, FHEO may disclose findings from the investigation. If the law has been violated, HUD or the Department of Justice may take legal action.

FHEO also funds state and local agencies that administer fair housing programs and initiatives, which are known as Fair Housing Assistance Program partners. In some cases, FHEO may refer a complaint to one of these partners.

As the regulatory agency in charge of overseeing Fannie Mae and Freddie Mac, the government-sponsored enterprises that guarantee most U.S. mortgages, the Federal Housing Finance Agency (FHFA) also plays a role in enforcing fair housing. FHFA ensures that the U.S. mortgage market abides by equitable lending practices. 

» LEARN MORE: What are consumer protection laws?

FAQ

Bottom line

Everyone deserves the chance to buy their dream home or choose where they want to rent. Fair housing laws prevent discrimination in the sale or rental of housing. On a federal level, these laws — such as the Fair Housing Act — prevent discriminatory practices based on race, color, national origin, sex, familial status and disability. Many state laws add additional protected classes.

To find a real estate professional or mortgage lender committed to equal opportunity housing practices, look for a fair housing certification or HUD’s equal opportunity logo on their website or promotional materials.