One of the most important functions of federal fair housing laws is to prevent racial discrimination in the rental, sale, and financing of apartments and houses. The Department of Housing and Urban Development ("HUD") is the federal agency responsible for creating national policy and programs to enforce fair housing laws. In addition to enforcement of fair housing laws on racial discrimination, HUD has many programs directed towards vulnerable populations; including people with disabilities, the elderly, the homeless, and the working poor.

Race Discrimination and the Fair Housing Act

Congress enacted the Fair Housing Act of 1968 in order to promote equal access to housing opportunities. The Fair Housing Act (along with its amendments) states that property owners, financial institutions, and landlords may not discriminate on the basis of race and national origin (the Act also prohibits discrimination based on sex, religion, family status, disability, and more).

Specifically, property owners, financial institutions, and landlords may not take the following action (or inaction) based on race of the actual or potential buyer, tenant, or applicant:

• Refusing to rent or sell housing;
• Refusing to negotiate for housing;
• Making housing unavailable;
• Providing different terms to different people;
• Setting different conditions or privileges for sale or rental of a property;
• Denying access to or membership in a facility or service related to the sale or rental of housing;
• Imposing different rates and terms on a loan;
• Refusing to make a mortgage loan; and
• Discriminating in appraising property.

Almost all forms of housing are covered by the Fair Housing Act. There are, however, several exceptions to these prohibitions. Generally, owner-occupied buildings with no more than four units, single family housing sold or rented without the use of a broker, and housing operated by organizations and private clubs that limit occupancy to members do not have to comply with the Act.