Fair Housing / Lending News

The Department of Housing and Urban Development (“HUD”) has unveiled a series of proposed rule changes that would prohibit lenders from using sexual orientation or gender identity as a way of determining a borrower's eligibility. The proposed rule changes will (a) define sexual orientation and gender identity, (b) prohibit inquiries regarding sexual orientation and gender identity, (c) prohibit sexual orientation and gender identity as grounds for decision making in Federal Housing Administration (“FHA”) programs, and (d) would clarify that all eligible families, regardless of marital status, sexual orientation, or gender identity, have the opportunity to participate in HUD programs, including the housing choice voucher program. The proposed rule changes come in response to information gathered by HUD which suggests that gay, lesbian, bisexual, and transgender (“LGBT”) individuals and families are arbitrarily excluded from housing opportunities because of their sexual preferences a...

Bloch v. Frischholz, 587 F.3d 771(7th Cir. 2009) Decided November 13, 2009 The 7th Circuit Court of Appeals unanimously held in Bloch v. Frischholz, that the Fair Housing Act (FHA) protects persons from discrimination not only before, but also after housing has been acquired. Though bright-line rules were not necessarily developed, the court discusses three provisions through which post-acquisition claims can now more clearly be established. Since 2004, after the Court's decision in Halprin v. Prairie Single Family Homes , the Fair Housing law in the 7th Circuit concerning post-acquisition conduct has been construed very narrowly because as the court stated,"the FHA by and large [is] concerned only [with] access to housing." Id. Halprin has lead many courts to focus on the timing of the discrimination rather than whether discrimination actually occurred. Bloch, to a certain extends, clarifies this area of the law by ruling that the FHA reaches a ...