Oct
09

North Carolina Fair Housing Act and Children

By

The other day one of my clients called and asked the following…

QUESTION:
“Can I refuse to rent a North Carolina property to a tenant because they have too many children?”

ANSWER:
No.  You may limit the maximum number of occupants, but you may not specifically limit the number of children.   Limiting the number of children is a violation of the State Fair Housing Act. It is considered discrimination based on “familial status.”

The State Fair Housing Act provides in pertinent part:
N.C. Gen .Stat. § 41A?4. Unlawful Discriminatory Housing Practices (as excerpted):

(a) It is an unlawful discriminatory housing practice for any person in a real estate transaction, because of race, color, religion, sex, national origin, handicapping condition, or familial status to:
(1) Refuse to engage in a real estate transaction;
(8) Otherwise make unavailable or deny housing.

The Act defines “familial status” N.C. Gen. Stat. Sec. §  41A-3:
“Familial status” means one or more persons who have not attained the age of 18 years being domiciled with:
a.  A parent or another person having legal custody of the person or persons; or
b.  The designee of the parent or other person having custody, provided the designee has the written permission of the parent or other person.  The protections against discrimination on the basis of familial status shall apply to any person who is pregnant or is in the process of securing legal custody of any person who has not attained the age of 18 years. Just in case you doubted that the act covered rental property, it defines “real estate transaction”: “Real estate transaction” means the sale, exchange, rental, or lease of real property.

If you are sued under the State Fair Housing Act the court may grant relief, as it deems appropriate including any permanent or temporary injunction, temporary restraining order, or other order, and may award to the plaintiff, actual and punitive damages, and may award court costs, and reasonable attorney’s fees to the prevailing party.

So, if the court finds that you have discriminated in your housing practices, the penalties can be severe!  Generally if you are in doubt with respect to Fair Housing Act violations it is better to be safe than sorry.  It is always a good idea to consult with someone knowledgeable about the Fair Housing Act.

If you would like to read the Act yourself you can find it at: http://www.ncga.state.nc.us/gascripts/Statutes/StatutesTOC.pl?Chapter=0041A

See more posts by Norm Praet in the Attorney’s Corner!

 The information you obtain in this article is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.

Norm Praet is an experienced real estate and business attorney who serves the Triangle and surrounding regions. He is a member of TREIA, the Wake County Apartment Association, and sits on the Government Affairs Committee of the Triangle Apartment Association. Mr. Praet is a member of the Praet Law Firm, PLLC and can be reached at (919) 627-7261 or npraet@praetlaw.com

Note: A portion of TREIA receipts is used for lobbying efforts for/against laws that affect real estate investing. According to the Internal Revenue Code, lobbying and political campaign expenses that are paid with member dues are not deductible. Because of this, we must notify you as to what portion of your dues cannot be deducted as a business expense. In January of each year, you will be notified of the percentage of your dues that cannot be deducted.

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