Texas Fair Housing Act: An Overview

Key Takeaways

• Texas landlords must comply with the Fair Housing Act, which prohibits discrimination in housing-related activities and carries serious financial and legal penalties for violations.
• Discrimination can take many forms, including biased advertising, inconsistent screening practices, and refusing reasonable accommodations, so landlords need clear, standardized policies.
• Staying compliant requires ongoing awareness of federal, state, and even local protected classes, as well as careful, fair enforcement of lease terms for every resident.

One of the laws under the TX Property Code Chapter 92 that landlords should abide by is the Fair Housing Act. The Fair Housing Act (FHA) makes it illegal for landlords to discriminate against residents based on certain classes.

Some examples of the applicable protected classes are race, color, religion, nationality, and sex.

Other than the rental of homes, other housing-related activities impacted by the FHA include selling, buying, and financing of homes.

Failing to keep any aspect of the Fair Housing Act in Texas can have harsh penalties. Per the Texas Workforce Commission (TWC), a first offense can set you back by around $10,000. Additionally, you may face civil court and criminal penalties as well.

Luckily for you, here is a guide by Keyrenter Houston about what the Fair Housing Act in Texas entails.

What is the Federal Fair Housing Act?

The Federal Fair Housing Act became law on April 11th, 1968, after being signed by President Lyndon B. Johnson.

It prohibits discrimination in housing-related activities, such as in the renting, selling, mortgage financing, security deposit collection, and eviction, based on 7 protected classes. The classes are: race, religion, color, disability, familial status, sex, and nationality.

The goal of the act is to ensure every American has a fair and equal opportunity when it comes to housing. 

A few exemptions do apply, however. They include the following.

• The “Mrs. Murphy” Exemption. It applies to owner-occupied buildings with a maximum of four units.
• A single-family home that the owner rents out without a real estate agent. In addition, the owner must not use discriminatory advertising, and must not have more than three such homes.
• Religious organizations can give preference to members professing the same religion. The organization, however, must not discriminate among the members based on the federal fair housing laws.
• Private clubs can limit occupancy to favor their own members.
• Housing for older persons can discriminate based on familial status.

What is the Fair Housing Act in Texas?

The Federal Fair Housing Act applies to all fifty U.S. states. It prohibits discrimination based on 7 protected classes. That is, race, color, disability, familial status, sex, religion, and nationality.

At the state level, though, no regulation provides additional protected characteristics.

Be that as it may, there may be some additions at the local levels. In Dallas, for instance, there are three additional protections: gender identity, sexual orientation, and gender expression.

Therefore, make sure to do some research on any additional protected classes that may apply to you to ensure utmost compliance.

What are Some Examples of Housing Discrimination Behaviors?

Under the Federal Fair Housing Act, there are various behaviors listed that may be considered discriminatory.

The following are some examples:

• Telling a prospective resident that an apartment is available for renting. However, upon meeting them, you falsely claim the unit isn’t available because they are from a race you don’t like.
• Directing a resident to a different neighborhood based on similar discriminatory reasons.
• Using discriminatory phrases in a rental listing. For instance, stating that the unit is ideal for a female resident, a Christian family, or a Caucasian resident.
• Refusing to consider families with children, citing potential noise complaints.
• Asking prospective residents discriminatory questions. For example: are you married? How many children do you have? Where are you originally from?

What Can Landlords in Texas Do To Stay Legally Compliant with the Fair Housing Laws?

As already mentioned, violating the FHA can have some harsh penalties. Also, the impact on your bottom line can be significant. 

With that in mind, here are some tips you should keep in mind to ensure utmost legal compliance.

• Standardize the screening process. If you relax some requirements for one applicant and not for another, that may be discriminatory. As such, make sure to have fair and consistent screening criteria and make objective decisions.
• Write proper rental ads that don’t show bias or favor based on any protected classes. Steer clear, for instance, of phrases that show preference towards certain groups. For example: “bachelor pad,” or “perfect for a quiet couple.”

• Provide disabled residents with reasonable accommodations and allow reasonable modifications. When it comes to accommodations, you must, for instance, allow assistance animals even if you have a “no pets” policy. As for modifications, you must allow them as long as they are reasonable (and at the resident’s cost).
• Enforce the terms of the lease fairly, regardless of characteristics like race, color, and religion. If charging late fees, for example, do so for all residents. Charging others and forgiving others can be grounds for discriminatory lawsuits.

Conclusion

Fair housing laws are the cornerstone of U.S. civil rights legislation. As a landlord in Texas, you must ensure you follow the state’s fair housing laws and landlord-tenant laws down to the letter to be successful.

If you have a question or need expert property management in Houston, look no further than Keyrenter Houston. We can provide you with comprehensive property management solutions for stress-free ownership and maximized returns.

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.