Posts tagged Discrimination
HOAs and Group Homes: The Challenge of Developing a Fair and Compliant Policy

Zoning ordinances and HOA covenants often disallow commercial uses of properties in residential areas.  A group home that accepts payments for services provided at the home is almost certainly engaging in commercial activity.  But, although the plain language of an ordinance or covenant might appear to prohibit such a group home, federal law forbids state and local governments or HOAs from impeding certain protected uses (more on that later). Importantly, there are different categories of group homes, and the laws protecting each home depend in large part on what kind of home is involved.

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The Do's and Don'ts of HOA Rental Restrictions

Rental restrictions undeniably limit the free-use of property.  Nonetheless, courts throughout the country have consistently upheld such restrictions when rationally calculated to promote the development’s greater good.  Even blanket rental prohibitions have been reluctantly upheld in some states, as long as the association has a legitimate purpose for the restriction. “Legitimate purposes” justifying rental restrictions typically involve maintenance of property values and promotion of community standards. Along with serving a legitimate purpose, to be enforceable a rental restriction must be a “reasonable” means of accomplishing the stated goal. Rental restrictions come in several forms, two of the most popular of which are caps and lease restrictions. 

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HUD Significantly Expanded Possible Harassment Liabilities for HOA Boards

As part of the Fair Housing Act, Congress granted the Department of Housing and Urban Development (HUD) the authority to adopt rules to meet the statute’s objectives. In October of 2016, the department completed the formal rulemaking process and published the final rules that are now law. One of the new rules codified by HUD can potentially significantly affect the number of harassment claims an HOA will face. Today we will focus on what might be the most significant new rule: liability for discriminatory housing practices, found at 24 C.F.R. §100.7(a)(1)(iii).

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