People living with mental illness or intellectual or other developmental disabilities face significant housing discrimination. So says a new pilot study from the U.S. Department of Housing and Urban Development (HUD) that promises to crack down on discrimination enforcement efforts specific to mental disabilities.
And that’s only one area of discrimination HUD is focusing on in its enforcement sights on these days. For instance on Oct. 3, the agency announced an agreement to resolve a discrimination complaint brought by fair housing advocates against Maryland’s Department of Housing and Community Development (DHCD) challenging the fairness of the state’s low income housing tax credit (LIHTC) program. The agreement establishes policies, incentives, and more flexible program rules that will streamline the creation of affordable housing in higher opportunity neighborhoods in the Baltimore region.
First Study of Its Kind
The HUD study on mental disability discrimination, “Rental Housing Discrimination on the Basis of Mental Disabilities: Results of Pilot Testing,” reveals that when compared to people without mental disabilities, those who have mental disabilities:
- Receive fewer responses to their rental inquiries
- Are informed of fewer available units
- Are less likely to be invited to contact the housing provider
- Are less likely to be invited to tour an available unit
- Are more likely to be steered to a different unit than the one advertised
- Are treated differently depending on their type of disability
The study was the first multicity housing discrimination study to utilize people with mental disabilities as testers, according to HUD. The study used paired testing via email, phone and in-person contacts in nine small and mid-sized urban rental markets and two large rental markets (Chicago and Washington, DC).
What’s more, a significant percentage of testers seeking a reasonable accommodation received a negative response to their request, HUD states.
This study “spotlights the types of discrimination people with mental disabilities experience when searching for housing,” HUD Secretary Ben Carson said in a Sept. 5 statement. “The findings will not only inform our enforcement efforts, but enable us to identify and remove barriers for those who face housing discrimination.”
Discrimination in LIHTC Program Alleged
The alphabet soup of public housing regulations spans the ADA, FHA, and LIHTC to the intricacies of EIV, MORs and REAC. And of course the IRS is involved: The LIHTC program is subject to a number of rent and income restrictions, in particular, the 15-year period of compliance with IRS use restrictions.
HUD’s recent settlement with the Baltimore Regional Housing Campaign (BRHC), a coalition of housing and civil rights organizations came in response to accusations that the state maintained a policy requiring local jurisdictions to approve proposed affordable housing projects prior to the consideration or allocation of low income housing tax credits to fund construction. The coalition’s complaint alleged that requiring local jurisdiction pre-approval prevented the placement of LIHTC-funded properties in predominately white areas, thereby limiting housing opportunities for African-American and Hispanic families in communities of opportunity.
Property owners and managers are faced with a number of questions regarding compliance with LIHTC program requirements, including: What are the compliance mechanics for a layered property? What happens after year 15?
The IRS has provided guidance for staying in compliance with the LIHTC program requirements that cover layered property and its blended compliance mechanics. IRS Forms 8609, 8823 and the multiple building election are all keys to complying with this complex requirement.
Help in Housing
As an owner or manager of a HUD-assisted site, you live and die by your ability to comply with ever-changing regulations. But you don’t have to carry that burden alone. Assisted Housing Alert includes indispensable guidance on surviving inspections, training management staff, navigating tricky tenant relations, drafting sound policies, understanding eligibility rules, calculating rent, keeping up with HUD reg changes, and staying out of legal hot water with the feds in general.
And if you are particularly concerned about the LIHTC program, join housing regulatory expert Paul Flogstad for a webinar with AudioSolutionz, “LIHTC Update: Understanding the Ins and Outs of Tax Credit Properties.” Paul provides an analysis of the key concepts of LIHTC program, helping you successfully navigate through the regulations and guidance, key documents, blended scenarios and noncompliance issues.
Thanks to Sarah Terry, editor of Assisted Housing Alert, for contributions to this post.
