The FHA official site reports charges against a La Crosse, Wisconsin landlord for violating the Fair Housing act, “for refusing to rent an apartment to an African American couple because of their race.”
FHA press release 11-228 says, “HUD brings the charge on behalf of the couple, alleging that Geneva Terrace, Inc. and Victoria Gerrard, the owner of Geneva Terrace Apartments, and property manager Nicolai Quinn refused to show an apartment to the complainants. Additionally, they falsely represented to the couple and other black applicants that no units were available, while informing white applicants of available units and encouraging them to apply. The Fair Housing Act prohibits housing discrimination based on race.”
What does this have to do with FHA home loans?
Refusing to rent to a qualified tenant based on racial bias isn’t the only type of violation of the Fair Housing Act. Property owners who attempt to refuse the sale of their property for the same reasons are also in violation of federal law. An owner can’t refuse to sell, nor can a lender refuse to issue credit, based racial bias, gender or other issues unrelated to a borrower’s financial qualifications to purchase.