Fair Housing Compliance in Practice

Steering occurs when real estate professionals direct homebuyers toward or away from certain neighborhoods based on protected class characteristics. Steering can be subtle — for example, selectively showing properties in certain neighborhoods, emphasizing school quality as a proxy for racial composition, or volunteering demographic information about neighborhoods. Even well-intentioned comments like "you would really love this neighborhood — there are lots of families like yours there" can constitute steering.

Blockbusting (also called panic peddling) involves inducing property owners to sell by making representations regarding the entry or prospective entry of members of a protected class into the neighborhood. Redlining involves denying services to residents of certain areas based on the racial or ethnic composition of the neighborhood. While historically associated with mortgage lending, redlining can apply to any housing-related service including insurance, appraisals, and brokerage services.

The Fair Housing Act extends to advertising, prohibiting any statement or advertisement that indicates a preference, limitation, or discrimination based on protected class characteristics. HUD has issued detailed guidelines on discriminatory advertising, including the use of human models (advertising should depict diverse persons), geographic preferences (cannot use code words for racial composition), and property descriptions that imply preferences ("perfect for young professionals" may discriminate against familial status; "walking distance to church" may discriminate against religion).

Digital advertising presents additional challenges. In 2019, HUD charged Facebook with violating the Fair Housing Act by allowing advertisers to target housing ads based on protected characteristics and by using algorithms that reproduced discrimination even when advertisers did not explicitly target protected classes. Social media platforms have since modified their advertising tools, but agents must remain vigilant about targeting practices in digital campaigns.

The Fair Housing Act requires housing providers to make reasonable accommodations in rules, policies, practices, or services when necessary to afford a person with a disability equal opportunity to use and enjoy a dwelling. Examples include allowing service or emotional support animals in no-pet buildings, providing reserved parking for mobility-impaired residents, and permitting a live-in aide in units restricted to a certain number of occupants.

Reasonable modifications are physical changes to the premises that a person with a disability needs to fully use and enjoy the dwelling. In rental housing, the tenant bears the cost of modifications unless a federal or state program provides funding. In public housing and properties receiving federal financial assistance, the landlord must bear the cost. The provider cannot require documentation beyond what is necessary to verify the disability-related need, and cannot charge additional deposits or fees for accommodations.