February 24, 2015
We’ve seen a number of headlines recently on the FHA and HUD’s position on Equal Access laws. Now there is additional guidance coming on the heels of what’s already been released. On Monday, February 23 2015 the FHA and HUD issued a new press release announcing further clarification of its Equal Access rules which prohibit discrimination based on sexual identity, gender identity and related factors.
According to HUDNo.15-023, “The U.S. Department of Housing and Urban Development (HUD) issued guidance to better serve LGBT Americans seeking to obtain a home loan and transgender individuals seeking access to homeless shelters. These two sets of guidance will help clarify the Equal Access to Housing in HUD Programs Regardless of Sexual Orientation or Gender Identity Rule (Equal Access Rule), which was published in 2012. The Equal Access Rule ensures that housing across HUD programs is open to all eligible individuals regardless of actual or perceived sexual orientation, gender identity or marital status.”
Furthermore, “HUD’s guidance on program eligibility for HUD assisted and insured housing programs includes an equal access provision making clear that housing that is financed or insured by HUD must be made available without regard to actual or perceived sexual orientation, gender identity, or marital status.”
That’s an important step forward in the cause of civil rights, but the FHA and HUD don’t stop there. The guidance issued by the FHA/HUD also forbids “owners and operators of HUD-funded housing, or housing whose financing was insured by HUD, from inquiring about an applicant’s sexual orientation or gender identity or denying housing on that basis. In addition, the guidance also makes clear that sexual orientation and gender identity should not and cannot be part of any lending decision when it comes to getting an FHA-insured mortgage.”
The idea that non-financially related qualifications should not be used to determine eligibility for an FHA loan or for housing in general has long been upheld by the FHA and HUD, but these new clarifications to the Equal Access rules make it harder to discriminate.
Where FHA home loans are specifically concerned, the FHA and HUD instruct lenders, “No owner or administrator of HUD-assisted or HUD-insured housing, approved lender in an FHA mortgage insurance program, or any other recipient or sub-recipient of HUD funds may inquire about the sexual orientation or gender identity of an applicant for, or occupant of, HUD-assisted or HUD-insured housing for purposes of determining eligibility or otherwise making such housing available. However, permissible inquiries into sex are permissible for temporary, emergency shelter with shared sleeping areas or bathrooms, or to determine the number of bedrooms to which a household may be entitled.”
Borrowers or applicants who are unsure how the new guidance affects them can learn more from this PDF document made available via the FHA official site.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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