Q & A | Fair Housing Penalties Increased Again in 2021?

Question from a Blog Reader

"I have heard that Fair Housing civil penalties have gone up again this year for violations, but I cannot find the new numbers. Where can I find them?"

Answer

Summary: The Fair Housing civil penalties did go up in 2021, and the new numbers can be found in the Federal Register HERE.

During the pandemic, HUD tells us that complaints of housing discrimination are up. Conscientious owner/agents want to avoid discrimination in any form, ideally because it is the right thing to do. However, a healthy respect for the penalties that can be levied against violators of the Fair Housing Act also realistically provides some motivation!

On March 16, 2021, the U.S. Department of Housing and Urban Development (HUD) published new inflation-adjusted civil penalty amounts for individuals or entities that have been found to have violated a variety of different housing-related laws, including the federal Fair Housing Act. The new civil penalty amounts apply to violations that occur on or after April 15, 2021.

Under the revised amounts, a violator ("respondent") can be assessed a maximum civil penalty of $21,663 for a first violation of the Fair Housing Act. If they had violated the Fair Housing Act in the previous 5 years and are again in violation, they can be fined a maximum of $54,157, and respondents who had violated the Act two or more times in the previous 7 years can be fined a maximum of $108,315 upon another violation.

Please note that these civil penalty amounts are only the portion levied by the government of the overall cost of Fair Housing violations. Think of the speeding ticket a person gets for violating speeding laws. A person who speeds is additionally subject to lawsuits by persons injured by the person's mishandling of a vehicle. Similarly, when the Fair Housing Act is violated there are civil penalties, but people also suffer injury and there are likely actual damages, attorney’s fees, and other costs that may be awarded to someone who has experienced housing discrimination.

Prior to this adjustment, the 2020 penalty amounts were $21,410 for a first violation, $53,524 for a second violation, and $107,050 for a third violation.

Looking for quality online on-demand Fair Housing training? Check out Fair Housing Fundamentals and Fair Housing Fundamentals for Maintenance Professionals. More information on these courses is HERE.