Ken Harney 
writes an award-winning, nationally syndicated column for the Washington Post on “The Nation’s Housing.” On January 27, he interviewed me for an article he was writing about the vulnerability of associations to discrimination claims related to FHA certification.
writes an award-winning, nationally syndicated column for the Washington Post on “The Nation’s Housing.” On January 27, he interviewed me for an article he was writing about the vulnerability of associations to discrimination claims related to FHA certification.
His interest was triggered in part by an article I wrote last November about an Ohio Civil Rights Commission investigation of alleged familial discrimination when a condo board declined a single mother’s request to certify the development for FHA financing (so she could buy a unit).
After a six-month investigation, Ohio’s CRC found insufficient evidence the association had violated the law. However, they left open the door that the buyer could file an action in federal court for disparate impact discrimination. If that were to happen, the Department of Justice could pursue the matter against the association.
Ken Harney noted that the current administration has already aggressively pursued disparate impact discrimination against mortgage companies. In other words, condominium associations could be open to civil rights claims for not seeking FHA certification because their decision has the practical effect of discriminating against minorities. To read the article, see “Condo Boards Could Face Discrimination Claims.”
RECOMMENDATION: As I noted in last year’s article, any decision not to seek FHA certification must be based on non-discriminatory reasons, which should then be recorded in the board’s meeting minutes. Boards should seek legal assistance drafting the board resolution before it is recorded in the minutes.
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