Federal and State housing laws

Federal and State Housing Laws: Learming Objectives

.Identify protected classes under the Pair Housing Act Identify limited exemptions under the Fair Housing Act Identify conduct that is illegal under the Fair Housing Act Understand how to file a federal fair housing complaint Compare the federal Fair Housing Act to the FL Fair Housing Act :Understand how to file a fair housing complaint at the state Identify the Florida agency that investigates fair housing violations Understand how the Americans with Disabilities Act is implemen Understand the requirements of the Interstate Land Sales Pull Identify the duties of landlords and tenants under the FL Residential Tenant Act Understand procedures for dealing with landlord and tenant Describe the purpose and responsibilities of a property manager

Termination of Lease by Landlord

.Termination of Lease (S 83.56, Fs) Termination by Landlord for Tenant Breach i.7 Day Notice to Vacate: Ifa tenant fails to materially comply with her maintenance obligations, the lease provisions, or reasonable rules and regulations, the landlord has two main options on how to proceed. This is NOT applicable for a non payment of rent. If noncompliance isminor enough that a tenant should have opportunity to correct the issue (a curable noncompliance), landlord may deliver a7 day written notice to the tenant. Thisnotice must specify noncompliance and state that the tenant doesn't comply within the 7 day time landlord in tends to terminate if the frame. For example, this might apply in situations where the ten an t has un authorized pets or un sanitary premises

Interstate Land Sales Full Disclosure Act (ILSA)

1. Federal Interstate Land Sales Full Disclosure Act (cont.) Sales Pull Disclosure Act, th e b. Contract Rights. If a lot is contract or purchase rights. The purchase subject to the contractual agreement cooling agreement of 7 days longer if off period extended the seller and receive Interstate Land must in form the buyer of certain must state that the buyer has a con tractis for any reason, by notice signed (or the day that the the contract, by state law) following to cancel his or her money back

Interstate Land Sales Full Disclosure Act (ILSA)

1. Federal Interstate Land Sales Full Disclosure Act (cont.) c. Developer Registration. Developers register with the Consumer Financial requires information such as: qualify ing developments must Protection Bureau (CFPB). Registration corporate charter and financial including title policy or attomey's title infomation on local ordinances and available in the areas such as information about availability of statement in formation about the land, opinion; copies of deed and mortgages, health regulations; in formation about facilities schools, hospitals, and transportation systems, utilities and water and plans for sewage disposal; property, including in formation on roads, streets, and recreational facilities such as maps, plats, and letters from suppliers of development plans for the supporting documents water and sewer facilities. This for public inspection and copying. available

Federal Fair Housing Laws

1. Nature of the Fair Housing Act/Covered Transactions. The Fair Housing Act applies to the sale or rental of residential housing, which the Department of Housing and Urban Development (HUD) defines as a dwelling. Dwellings include all buildings, structures, or vacant land that is occupied, designed, or intended to be occupied residence by one or more families. Dwellings also include any vacant land that is offered for sale/lease in order to build or be the location of a building or structure. Therefore, a dwelling does not include commercial property.

Landlord Remedies

10 FS) Remedies / Action for Possession / writ of Possession ( § 83.58 , -d . Orders to Enjoin Tenant Violations ( § 83.681 , FS ) . Ifthe landlord notified a tenant that her lease will be terminated due to intentional destruction, damage, ormisuse of the property, that landlord the court for an in junction in order to prohibit the tenant from continuing such can also petition violations.

Landlord Remedies

10 Landlord 's Remedies / Action for Possession / writ Possession ( § 83.58 FS). Ifa tenant stays in the dwelling after lease expiration (without permission), the landlord may recover possession of the nit through an action for possession. Further, a landlord can also recover double the amount of rent for the time in which tenant refused to surrender possession. a. Action for Possession ($ FS). If a lease is teminated and the tenant vacate, the landlord may recover possession by filing complaint/action for possession in court. Such action must be filed in the county where the dwelling is located. In addition, the landlord can sometimes possession without filing

Landlord Remedies

10 Landlord 's Remedies / Possession / Writ of Possession ( § 83.58 , FS) a.Action for Possession ($ 83.59, FS) (cont). This is ONLY permitted if The tenant has possession of the dwelling unit to the landlord. The tenant has abandoned the dwelling unit. Abandonment presuned the tenant is absent for an extended amount of time without being current on the rent or notifying writing this context, an extended period of time is equal to one-half the time for periodic rental payments (15 days if rent is paid on a mon thly basis). The last remaining tenant has been deceased for at least 60 days, personal property remains on the premises, paid, been notified in writing of probate estate or personal tative.

Landlord Remedies

11. Landlord 's Remedies Upon breaches the lease and the landlord has Breach by Tenant ( § 83.595 , FS ) . If a ten an t obtained a writ of possession, or if the unit is surrendered or abandoned by the tenant, the landlord may: . Treat the lease as terminated and retake possession, thereby terminating any further liability ofthe tenant. difference between rent and Retake possession on behalf of the tenant and hold him accountable for the what the landlord is able to recover by reletting exercise good faith in attempting to must be deducted from the the unit. In such case, the landlord must relet the premises balance due from the tenant. and any amount received

Retaliatory Conduct

12. Tenant 's Defenses to Action for Rent or Possession ( § 83.60 FS ) -c . Retaliatory Conduct ( § 83.64 , FS ) . It is unlawful for a landlord to retaliate against the ten ant by increasing rent, decreasing threatening) an action for possession raise the defense of retaliatory conduct, the tenant must have acted in good services, or by initiating (or other civil suit. In order for a tenant to faith. landlord is specifically Prohibited Practices ( 583.67 , FS ) : The prohibited from the actions listed below. If the landlord violates any provisions listed in this the tenant for actual and consequential landlord will also be damages or3 months' rent, whichever is greater. The liable for costs, including attomey's fees.

Tenant Defenses

12. Tenant 's Defenses to Action for Rent or Possession ( § 83.60 FS ) Landlord Noncompliance. In an action for possession based on non payment ofrent, the tenant may defend herself by saying that landlord materially noncompliant statutory maintenance obligations. tenant can raise other she might have, including the defense of retaliatory conduct. t. Ifa tenant raises any defense other than payment example, defective 3 day notice), that tenant must pay rent to the court. Failure to pay rent in to the court registry waiver of the tenant's defenses other than payment. In such case, the landlord is entitled immediate default judgment and a writ of possession to remove the tenant without further notice or hearing.

Early Termination upon Foreclosure

14. Termination of Rental Agreement Upon When applicable, the 30 day written notice must be in substantially the following Foreclosure ( § 83.561 , FS ) ( cont ) . agreement is terminated on the date You are hereby notified that your rental ofdelivery ofthis notice, thatyour occupancy date of the delivery of this premises on (date). Ifyou do not vacate the notice, and that I demand possession of the terminated 30 days following premises by that date, I will ask you and your belongings from rent during the 30-day period for any premises. You order allowing me to remove obligated to pay amount that might accrue during that period. Your rentmust be delivered to

Rent Due

2. Rent 83.46 FS ) . Unless otherwise agreed , is payable at the beginning ofeach rent paymment period. Ifa lease containsno provision as to rent is payable. For example, if a lease requires rent to be month-to-month lease unless the agreement states otherwise paid monthly, that is a

Federal Fair Housing Laws

2. Specific Laws and their Effects (cont.) c. Federal Fair Housing Act of 1968. Bans all preference, limitation, or discrimination based on race, color, religion, sex, or national origin in connection with the sale rental of most residential dwellings and vacant land in tended for residential construction. Sex was not included as a protected class until 197 4. Also note that there are two categories of housing under the Housing Act: single-family and multi-family housing. Fair Housing Amendments Act of 1988. Congress amended the Fair Housing Act in 1988 to increase penalties for violators, provide an administrative en forcement mechan ism, and expand protections to persons that are handicapped or have familial status.

Federal Fair Housing Laws

2. Specific Laws and their Effects -a. Civil Rights Act of 1866. Prohibits any form of discrimination based on race that restricts a person's right to inherit, purchase, lease, sell, hold, or convey real and personal property. The Civil Rights Act of 1866 was subsequently incorporated into the 14th Amendment to the U.S. Constitution. As a federal law, and then a constitutional amendment, only federal courts have jurisdiction to en force the 14th Amendment. For example, in a 1968 case known as Jones v Mayer, the Supreme Court upheld the govermment's right to prohibit racial discrimination in the sale or rental of private property. b. Civil Rights Act of 1964. The Civil Rights Act of 1964, Title VI, prohibits discrimination based on race, color or national origin in programs and activities receiving finan cial assistance from the federal government.

Property Management Agreement

3. Property Management Agreement (cont.) c.owner's Duties. The owner is responsible for reimbursing the manager for lawsuits involving the exertion The owner is also responsible for indemnifying of the manager's duties manager against include provisions for early d. Termination. Management agreements usually exist for a termination due to a specific cause. definite duration deposits and prepaid rents will be held by the e.Status of Rents/Deposits. The agreement should specify whether security broker or the owner

Protected Classes

3. Protected Classes (cont.) - g. Handicapped. The Fair Housing Act protects persons with a handicap. The term "handicap" includes those with a disability. The legal definition of a disability requires that a person have a physical or mental impairment that substantially limits one ormore major life activities. Courts have in terpreted this phrase to include not only outward physical impainments, but also less visible diseases like: HIV/AIDS, cancer, and alcoholism. However, "disability does not include illegal drug use. Mental impairments are also protected handicaps. Fair Housing Act: EXAMPLE: Seller A agrees to sell to Buyers B on the condition that they presently have no children and do not plan to have any in the future. This condition violates the familial status protection under the Fair Housing Act and is unenforceable. As such, the condition is void, but if valid, the rest of the contract is enforceable. If it turns out the buyers actually have children, they may ignore the condition and enforce the underlying contract.

Protected Classes

3. Protected Classes (cont.) e. Gender. Among other protected classes, fair housing laws prohibit discrimination based on one's gender, such as "Male" or "Female." f. Familial Status. Among other protected classes, fair housing laws prohibit discrimination based on one's familial status. Essen tially, this prohibits discrimination against families with children. For the real estate professional, this means that properties orneighborhoods cannot be marketed or sold as child free" commun ities unless an exemption applies (we will discuss exemptions for retirement communities below). Specifically, familial status means one or more individuals who have not attained the age of 18 years who are domiciled with: (0) a parent or another person having legal custody: or (i) the designee of such parent or other person having custody, with the written permission of a parent or other person.

Protected Classes

3. Protected Classes (cont.) f. Familial Status (cont.). The term also includes any person who is pregnant or in the process of securing legal custody of an individual who has notyet attained the age of 18. Familial status is only applicable if at least one member under 18, pregnant, applied for custody ofa minor: Family includes a single individual, whether male or female. For example: Seller A agrees to sell to Buyers B on the condition that they presently haveno children and do not plan to have any in the future. That condition violates the familial status protection under the Fair Housing Act and is unen forceable. As such, the condition is void, but ifvalid, the rest of the contract would be enforceable. Ifit tums out that the buyers actually have children, they may ignore the condition and enforce the underlying con tract.

Protected Classes

3. Protected Classes - a. Race. Among other protected classes, fair housing laws prohibit discrimination based on one's race, such as "Caucasian," "African American," and "Latino." -b. Color. Among other protected classes, fair housing laws prohibit discrimination based on the color ofone's skin - c. Religion. Among other protected classes, fair housing laws prohibit discrimination based on one's religion, "Islam," "Christianity," and "Buddhism." d. National Origin. Among other protected classes, fair housing laws prohibit discrimination based on one's national origin, such as "Chinese," "German," "Brazilian."

Termination of Tenancy without Specific Ternm

3. Termination of Tenancy without Specific Term ( 83.57, FS). A tenancy without specific duration may be terminated by either party by giving proper written notice, as follows: to Year Tenancy. Givingno less than 60 days' written notice prior to the end of any annual period: b. Quarter to Quarter Tenancy. Giving no less than 30 days' written notice prior to the end of any quarterly period: c. Month to Month Tenancy. Giving no less than 15 days written notice prior to the end of any monthly period; and Tenancy. Giving no days' prior to the end of any weekly period.

Exceptions

4. Exceptions (cont.) - e. Elderly Housing. Housing for the elderly is exempt from the familial status protection if it falls into either one of the following two categories: (i) Housing that requires all ofits residents (excluding employees) to be 62 years ofage or older and (ii) Housing that requires at least one person per unit to be 55 years ofage or older , and 80 % of all units are so occupied . In order to qualify for this exemption, the housing must also provide services specifically designed to meet the needs of older persons (such as common dining halls, bus service, and recreational facilities), and the landlord must rent any units that become available only to those who qualify under this exemption

Exceptions

4. Exceptions (cont.) f. Threats to Health and Safety. The Fair Housing Act does not require thata dwelling be made available to an otherwise protected individual whose occupancy ofthe dwelling would constitute a direct threat to the health or safety of others, orwhose occupancy of the dwelling would result in substantial physical damage to the property of others. Threats to Health and Safety: EXAMPLE: James, a tenant at the Shady Oaks apartment complex, is arrested for threatening his neighbor while brandishing a baseball bat Consistent with the lease, the property manager provides James with a 30 day notice to quit James hires an attorney who informs the property manager that James conduct was caused by his James refuses to take medication to control his condition. Shady Oaks is not required to make accommodations for James and will violate Fair Housing Act for seeking to terminate his lease through the eviction process.

Exceptions

4. Exceptions (cont.) g.Occupancy Nothing in the Pair Housing Act prevents states from reasonably restricting the maximum number of people permitted to occupy a dwelling. Occupancy Restrictions: EXAMPLE: apartment Florida. The dwelling contains six 1 bath/2 bedroom units. You do not like children and do not want to rent to families with children. However you do not qualify for either of the al- elderly housing exemptions,so not discriminate against familles. Nevertheless because Peaceful Retreat has an ordinance that limits apartment occupancy to four people bathroom, violation family offive.

Exceptions

4. Exceptions. The Fair Housing Act permits otherwise discriminatory under limited that racial discrimination is never exempted and some exemptions are not available when there is a real estate agent involved in the transaction a. Private Individual Owners. Private individual owners of single-family housing are exempt from the non-racial protection s of the Pair Housing Act, provided they: (I) do not own more than three single-family houses at any orn time; (il) do not sell more than one single-family house in any two year period: (ili) do not employ and (iv) do not use discriminatory advertising. b. Owner Occupants. Owners who occupy their homes, but sell or rent or units, are exempt from the non-racial aspects of the Housing Act, provided their home contains four (4) or fewer units. The owner must actually maintain one of the units as his legal residence. This is in tended to exempt small rooming houses, people who take in boarders to make ends meet, and duplexes.

Security Deposits and Advance Rent

5 Security Deposit / Advance Rent ( § 83.49 , FS ) ( cont . ) c. No Commingling. Commingling is the act ofmixing or mingling entrusted client or customer funds with personal or business funds (deposit into the same account). The landlord cannot commingle deposit moneys with any other funds d. Interest Bearing Accounts. If a landlord is required to pay interest the ten ant, he is required pay the tenant least once annually. This interest may be paid to tenant directly or as a credit on the no interest is due if the tenant wrongfully currentmonth's rent. However the rental terminates the lease before the end of withdraw advan ce rent Withdrawing Advance Rent The landlord, or the landlord's agent, may from the deposit account when the advance rental period begins (as the rent is due) without notice to the tenant.

Security Deposits and Advance Rent

5. Security Deposit / Advance Rent ( § 83.49 , FS ) ( cont ) b. Notice on Where Deposit is Held (cont.) IFTHE LANDLORD FAILS TO TIMELY MAIL YOU NOTICE, THE LANDLORD MUST RETURN THE DEPOSIT BUT MAY LATER FILE A LAWSUIT AGAINST YOU FOR DAMAGES. IFYOU FAIL TO TIMELY OBJECT TO A CLAIM, THE LANDLORD MAY COLLECT FROM THE DEPOSIT, BUT YOU MAY LATER FILE LAWSUIT CLAIMING A REFUND YOU SHOULD ATTEMPT TO INFORMALLY RESOLVE ANY DISPUTE BEFORE FILING A LAWSUIT. GENERALLY, THE PARTY IN WHOSE FAVOR A JUDGMENT IS RENDERED WILL BE AWARDED COSTS AND ATTORNEY FEES PAYABLE BY THE LOSING PARTY. THIS DISCLOSURE IS BASIC. PLEASE REFER TO PART II OF CHAPTER 83, FLORIDA STATUTES, TO DETERMINE YOUR LEGAL RIGHTS AND OBLIGATIONS.

Security Deposits and Advance Rent

5. Security Deposit / Advance Rent ( § 83.49 , FS ) ( cont . ) -g.Upon Sale of the Property. If the rental property is sold or transferred to another owner, or if the designated rental agent is changed, all security deposits, advance rent, interest must be transferred to the new owner or agent. He or she must also receive accurate showing amounts should be credited to each tenant account.

Security Deposits and Advance Rent

5. Security Deposit/Advance Rent (S 83.49, FS) (cont.) a. Deposit by the Landlord. Whenever money is provided the landlord security deposit or advance rent, the landlord must notmake use of such money until it is actually due to the landlord. The landlord must also: Hold the money in a separate non-interest-bearing account in a Florida bank Hold the money in a separate such case , the tenant must receive at least rate , or a simple interest rate of 5 % interest-bearing account in a Florida bank. In 75 % of the annualized in terest or per year whichever landlord elects dwelling unst is located. This $50,000, whichever is less. The bond surety bond must Post a surety bond in the county where the be the total amount held on behalf of the tenants or shall be conditioned upon the landlord's must pay a simple faithful compliance with applicable interest rate of 5 % to the tenants provisions oflaw. Further, the landlord

Security Deposits and Advance Rent

5. Security Deposit/Advance Rent (S 83.49, FS) (cont.) b.Notice on Where Deposit is Held (cont.) PAYMENT OF CERTAIN YOUR LEASE REQUIRES MAY TRANSFER THEY ARE DUE AND GIVE THE LANDLORD WITHOUT ADVANCE RENTS TO THE LANDLORD'S DEPOSITS THE LANDLORD ACCOUNT AS SEND YOU NOTICES OUT YOU LANDLORD MUST YOUR NEW ADDRESS NOTICE. WHEN YOU MoVE SO THAT THE REGARDING YOUR DEPOSIT THE LANDLORD MUST OUT, OF THE CAN LANDLORD'SINTENT MAIL YOU NOTICE, WITHIN 30 DAYS AFTER YOU MOVE TO IMPOSE A CLAIMAGAINST LANDLORD STATING YOUR OBJECTION TO THE RECEIPT OFTHE LANDLORD'S NOTICE. THE CLAIM AND MUST MAIL YOU THE THE DEPoSIT. IFYOU DO NOT REPLY TO THE CLAIM WITHIN 15 DAYSAFTER THE LANDLORD WILL COLLECT REMAINING DEPOSIT, IF ANY.

Steering

5. Types of Violations (cont.) a. Steering. Illegal act under the Fair Housing Act where an agent discourages protected classes from purchasing property in certain neiglhborhoods or directs them to certain properties or neiglhborhoods (often motivated by the ethnic cultural composition of the neighborhood in question). Steering: EXAMPLE. Ifa real estate agent has a customer who makes $40,000 per year, it is not a violation If the agent decides to not show the customer $300000 house. However, if she decides to customer particular house because the customer is minority then the agent is guilty ofsteering. Steering is by far the most cited for fair housing lawsuits against agents

Types of Violations

5. Types of Violations. The Fair Housing Act and its amendments prohibit covered owners, lessors, and real estate agents from engaging in the following conduct: steering ; blockbusting ; redlining ; refusing to sell , ren t , finance , or insure ; refusing deal or negotiate with any person; discriminating in quoting terms or conditions of sale or rental; misrepresenting availability; denying MLSmembership; and making printing, or publishing advertisements for the sale or lease of a dwelling which any preference, against a protected class of persons.

Security Deposits and Advance Rent

5.Security Deposit/Advance Rent (S 83.49, FS) (cont.) f.Upon Termination of the Lease (cont.). The landlord's claim noticemust contain a statement in substantially the following form: This is a notice ofmy intention to impose a claim for damages in the amount of as required by s. 83.49(3), Florida Statutes. upon your security deposit, due to It is sent to you You are hereby notified thatyou must object in writing to this deduction from your security deposit within 15 days from the time you receive thisnotice or I will be authorized to deductmy claim fromyour security deposit. Your objection must be sent to Clandlord'saddress)."

Redlining

5.Types of Violations (cont.) - c. Redlining. Illegal act under the Fair Housing Actwhere a mortgage loan or policy unfairly denied based on where the property is located rather than the economic qualifications of the person seeking the loan or policy. Redliningnot only violates fair housing laws, but also violates Federal Housing Finance Agency (FHFA) regulations. Lenders cannot attempt to limit risk by setting loan limits on particular geographic areas. Redlining: EXAMPLE: It is illegal for lender to deny a loan because the subject property deteriorating neighborhood. The decision ofwhether approve the loan must only be based on the economic qualifications of the applicant and the appraised value of the property Increasing amount required for down payment in order to discourage a protected class of from purchasing property is a violation Housing Act.

Blockbusting

5.Types of Violations (cont.) b. Blockbusting. Illegal act under the Fair Housing Act where a person induces the sale of property or properties by overtly creating the impression that a neighborhood is about to undergo an undesirable change. Examples of blockbusting include: suggesting that minorities are changing the balance of a neighborhood, suggesting of other nationalities are degrading quality of the school system serving a neighborhood, or to otherwise frighten people into selling their house for a prohibited reason. Blockbusting: EXAMPLE: Violations blockpast synagogue "next door to Martin Luther King High School."or a picture showing 10 white adults, all holding cans of beer, used to advertise an apartment project (this picture communicates that families and minorities may not be welcome

Landlord's Obligation to Maintain

6 , Landlord 's Obligation to Maintain ( § 83.51 , FS ) . The landlord must comply with applicable building, housing, and health codes, maintain structural components in good repair, and keep However, the landlord is not required to maintain plumbing in reasonable working condition amobile home or other structure owned by the tenant. Purther, the landlord is not responsible for conditions created or caused by the negligent or wrongful act of the tenant (or the tenant's guest) Unless otherwise agreed in writing, if the unit is NOT a single-family home or duplex, the landlord must install working smoke detectors and must also make reasonable provisions for: pest condition ofcommon areas, trash removal; and function hot water. The landlord may charge the tenant for garbage removal, water, fuel, and ing heat, running water and extermination; locks and keys the clean and safe utilities. These mainten ance obligations modified writing if the dwelling a single-family home or duplex.

Reasonable Accommodations

6. Leasing to Handicapped Persons (cont.) -b , Reasonable Accommodations . Landlords leasing covered existingunits are subject to certain rules depending upon the year leased units were built, including a handicapped tenant's right to make reasonable modifications dwelling unit at the tenant's expense and a landlord's duty to make reasonable accommodations to rules, policies, and services ifnecessary to allow handicapped persons equal opportunity to use and enjoy the premises. Reasonable accommodations might include actions like: allowing a handicapped tenant to mail the rent instead of delivering it to the office assigning a closer parking for with mobility disabilities, andnot classifying a home health aide, therapist, ornurse as an additional tenant/guest under the lease.

New Constructionn

7. New Construction: In 1988, Congress amended the Fair Housing Act to include design and construction requirements. Their intention was to allow people with mobility-related disabilities to have a better chance of finding housing that worked for (andnot against) their specific needs. New multi-family dwellings must therefore be designed and built to meet certain adaptability and accessibility requiremen ts. Under these amendments, "new" is defined as anything built after March 13, 1991. "Multi-family" is defined as any project with four may include condominiums apartments and single-story town houses. Covered structures must install accessible handicapped routes (at least one building route), switches, outlets, and other con trols. Bathroom walls must be rein forced allow there must be sufficient space in kitchens and bathrooms to allow a wheelchair to maneuver. Finally, all units must conform to the access accommodations in multi level buildings with elevators. Ground floor umitsneed only con form the handicapped access requirements in multi-level buildings that have elevator

Tenant's Obligation to Maintain

7. Tenant 's Obligation to Maintain ( 583.52 , FS ) . During the tenancy , the tenant must: comply with all tenant obligations in applicable building, housing, and health codes, keep the premises sanitary and free of garbage keep all plumbing fixtures clean and in repair, operate all electrical, plumbing, sanitary, heating, ventilating air-conditioning, and other facilities and appliances a reasonable manner, not damage any part of the premises or permit any other (including the any elevators) in person to do and require himself and guests conduct themselves in a manner that does not unreasonably disturb the neiglbors.

Equal Opportunity Posters

8. Equal Opportunity Posters. Real estate brokers must display HUD equal opportunity posters places ofbusiness, model home sites, and other related locations. Posters must contain the Equal Opportunity slogan, and logo. Developments under the FHA must undertake affirmative marketing program to attract a cross-section of the community

Penalties

9. Fair Housing Enforcement (cont.) c.Penalties. Penalties for Federal fair housing violations range from compensatory damages to victims for actual damages suffered as a result of the violation (including pain and suffering), to injunctive relief (order to correct violations), to attomey fees and costs. Ifa patterm of discrimination is found in up $20,111 violations and up to $100,554 for third violations within seven years. In federal court, if the Attomey General finds that the discriminating party is engaged in a pattem of discrimination, the discriminating party is subject to civil penalties ofup to $100,554 for the first offense or up to $201,106 for subsequent violations.

Termination of Lease by Tenant

9. Termination of Lease ( - a.Termination by Tenant for Landlord Breach (cont.) ii. Noncompliance Beyond the Landlord's comply is due to reasons beyond the landlord's control (and every reasonable effort to correct the terminated or altered by the parties condition), the lease may be Control: When the failure to uninhabitability. circumstance. failure comply tenant vacates, the tenant is not liable for rent failure to comply does not render the unit remains in occupancy, during the period ofnoncompliance the rent may be during the period of depending on the specific renders the unit un inhabitable and uminhabitable and the tenant reduced proportionately

Termination of Lease by Landlord

9.Tennination of Lease ( § 83.56 , FS ) b Termination by Landlord for Tenant Breach (cont.) Day Notice to Vacate ( cont . ) : Ifthe noncompliance is serious enough premises within 7 days that a tenant should not have an opportunity to correct the issue, the landlord may similarnotice the tenant. However unlike curable vłolation, thisnotice will state that the lease is terminated mmediately due to the noncompliance, and the ten ant must vacate the This might apply in situations where there is damage or destruction to the premises. notice ifthe ten ant recelved written waming in the last 13 months fora The landlord can also provide such similarnoncompliance

Early Termination for Military Purpose

Armed Porces has a 13. Termination of Lease by Service Member ( § 83.682 , FS ) . A member of the the lease with a 30 day when the service member: (i) written receives orders to move ifcertain criteria are met. non-waivable riglht to terminate This is applicable 35 miles or more from the rental: (i) is prematurely discharged from miles or more in government quarters. This notice to the landlord active duty: (ii) is released home of record: or (iv) is from active duty and the rental is 35 required or becomes eligible to live must be accompanied by either copy of the official military orders or a written verification signed by the service member's commanding officer

Florida Fair Housing Act

B. FLORIDA FAIR HOUSING ACT ( § 760.20 , FS ) 1. Similar to Federal Act (cont.). federal Fair Housing Act its list of prohibited The Florida Pair Housing Act also mirrors the actions. As stated in the previous section, this includes: steering finance, or insure; refusing to deal ornegotiate blockbusting redlining refusing to sell, rent with any person; discriminating misrepresenting availability; denying advertisements for the sale limitation, or discrimination quoting terms or conditions of sale or rental; MLSmembership: and making or lease of a dwelling which against protected class of persons. indicates any preference, printing or publishing

Florida Fair Housing Act

B. FLORIDA FAIR HOUSING ACT (S 760.20, 2. Enforcement. The Florida Fair Housing Act is administered by the Florida Commission on Human Relations (FCHR). Victimsmay file complaint within 1 yeat or may sue in a civil court within 2years after the alleged discriminatory housing practice occurred. U.S. Department of Housing and Urban Development dual filed. Possible remedies for housing discrimination include in junctions (HUD), and most cases are The FCHR works cooperatively with the with the FCHR damages, court costs, and attomey act is a licensee, the Florida Real Estate fees. Ifthe person who committed the alleged Commission may also take disciplinary action to en force the license (suspension, revocation, etc.).

Florida Fair Housing Act

B. FLORIDA FAIR HOUSING ACT (S 760.20, FS) Similar Federal Act. The Florida Pair Housing Act has the same protected classes as the federal Fair Housing Act: race, color, religion, national origin, sex, familial status, and handicap. A person in the housing etc.) violates the Florida Fair Housing Act if they encourage rent with discriminatory intent. Note that marital status, age, sexual orientation occupation, and source of income are NOT protected classes under federal or state fair housing law. However these classes may be protected always important for a licensee to know the laws of her particular jurisdiction. under local legislation. It business (licensee, landlord, homeowner to sell or

Community Association Managers

Community Association Manager ( CAM ) ( § 468.431 , FS ) . Florida requires Community Association Manager person manages with 10 ormore units budget $100,000 and performs the following duties for compen sation (cont.): Determining amoun ts due to the association; Completing forms management association, as required statute or a state agency; Coordinating or performingmaintenance for real or personal property and other related routine services.

Community Association Managers

Community Association Managers 4. Community Association Manager (5 468.431, FS). Community association management requires specialized knowledge, judgement, and managerial skill. Therefore, a person cannot hold himself to the public being able to manage a community association (such condo, co-op, HOA, etc) without an applicable license from DBPR. Florida requires a Community Association Manager license if a person manages an association with 10 ormore units ora budget of $100,000 or more, and perfomms the following duties for compensation: Controlling or disbursing funds Preparing budgets or other financlal documents Drafting meeting notices and agendas, or assisting in the noticing or conduct ofassociation meetings

Enforcement

Enforcement 9. Fair Housing Enforcement. Federal Fair Housing Laws are administered by the Office of Pair Housing and Equal Opportunity (FHEO) under the direction of the Department of Housing and Urban Development (HUD). Any person who believes he has been discriminated against (aggrieved party) may file a complaint with HUD within one year of the alleged act, or HUD may initiate its own complaint. After the complaint, HUD investigates and, if the facts warrant, will bring a charge of illegal discrimination. The aggrieved party has a right to a hearing before an administrative law judge, who has the authority to award actual damages suffered by the aggrieved party, impose penalties, and/or issue an in junction ordering the discriminating party to stop the offending conduct. Instead of an administrative hearing, either party can choose to have the complaint heard in federal court. either party elects to to federal court, HUD will hand the case over to the Departıment of Justice, and the Attomey General will file suit and argue for the aggrieved party. Many state or local agencies have similar en forcement authority over the state fair housing statutes

Exceptions

Exceptions (cont.) c. Religious Organizations. Religious organizations (churches) may restrict members of the same religion. However, the religious organ ization must be non-profit and cannot discriminate on race, color gender familial status, handicap, ornationality d. Private Clubs. Private membership that are not open to the public may restrict lodging their facilities members profit clubs.

Federal Fair Housing Laws

FEDERAL FAIR HOUSING LAWS. Federal laws intended to promote equal and fair opportunities to obtain housing for certain protected classes of persons. The Department of Housing and Urban Development (HUD) admin isters the federal fair housing laws. Both HUD and the Department of Justice en force the laws. Most states have independent fair housing laws, pattemed somewhat after federal laws. State laws cannot conflict with federal laws by being more lenient authorizing fewer protections. However, state laws may impose stricter requirements or authorize greater protections than federal law.

Florida's Implementation of the ADA

FLORIDA AMERICANS WITH DISABILITIES ACCESSIBILITY IMPLEMENTATION ACT ( § S 53.501 , FS ) . In 1993 , Florida incorporated federal accessibility and construction requirements as state-wide law. Under this section, the design standards of the Americans with Disabilities Act (ADA) were thereby adopted into the Florida Accessibility Code for Building Construction. These requirements are maintained by Florida to ensure that all state laws, rules, standards, and codes are certified as substantially equivalent to the federal standards. Florida also allows for more stringent requirements if those rules provide accessibility than the minimum federal guidelines. For example, the Act lists additional requirements for: accessible bathrooms, accessible guest rooms in hotels and motels, emergency entrances and exits and handicapped parking spaces.

Landlord Remedies

FS) 10. Landlord's Remedies/Action for Possession/Writ of Possession ( 83.58, action for (S 83.62, FS). After an favor; the sheriff executes a "writ of remove the tenant's property. The by and keep the peace while c.Power to Award an action for possession b. Restoring Possession to the Landlord possession is judged in the landlord's possession" allowing the landlord landlordmay also request for the sheriff to stand changes the locks and removes any personal property from the premises. Possession and Enter Money Judgment is based on the non payment and a money judgement upon finding shall be directed against the tenant for prevailing party in the action that the tenant (S 83.625, FS). If ofrent, a court award possession to the landlord does owe rent. This money judgement the amount that is due and paid. awarded attomey's fees and costs.

Enforcement

Fair Housing Enforcement (cont.) violations in itsadnin istrative a . Public Enforcement . HUD may prosecute forum, before an administrative law judge. The Department of Justice may court. Both HUD and the Department of Justice prosecute complaints in federal may prosecute violations on their own motion, without receiving any complaint. The burden of proof in public action is always on the government (the complainant) privately in federal court. An - b. Private Enforcement. Individuals may litigate aggrieved party must file a complaint within oneyear with HUD or within two years in federal district court. Missing these aggrieved party's right to sue. Jurisdiction for violations deadlines may extinguish ofthe Civil Rights Act of 1866 lies exclusively in federal court. The burden of proof in a private action is always on the victim (plain tiff)

Interstate Land Sales Full Disclosure Act (ILSA)

Federal Interstate Land Sales Full Disclosure Act (cont.) b. Contract Rights (cont.). Unless the contract states that the seller will give buyer a warranty deed within 180 days after the contract is signed, the buyer has a riglht to cancel the contract forup to 2 years from the day that the contract is signed, unless the contract contains the following provisions: i. Description of Lots: clear description of the lot so that the buyer may record the contract with the proper coun ty authority Defaults: The right of the buyer to a notice ofany default (by buyer) days after receipt of that notice to cure or remedy the default: and iii. Limitation on Damages: A limitation on the amount ofmoney the seller may keep as liquidated damages , 15 % of the principal paid buyer (exclusive of interest), or the seller's actual damages, whichever is greater

Interstate Land Sales Full Disclosure Act (ILSA)

Federal Interstate Land Sales Full Disclosure Act. Federal law, which protects consumers from fraud and abuse in the sale or lease of land. In 1968, enacted the Interstate Land Sales Full Disclosure Act (ILSA), which is pattemed Congress subdivisions of 100 or more after the Securities Law of 1933. The Act requires land developers to register non-exempt lots with the Consumer Financial Protection Bureau (CFPB) and to provide each purchaser with a disclosure document Property Report. The Property Report contains relevant information about the subdivision and must be delivered to each purchaser before sign ing a contract.

Florida Residential Landlord and Tenant Act

LANDLORD AND TENANT ACT. The Florida Residential dwellingunit. A dwelling unit is a part of a structure, or a mobile home that is comply E. FLORIDA RESIDENTIAL Landlord and Tenant Act applies to the rental of a is con text as a structure, used or fumished with the as a home, residence, or sleeping requirements of provision place. Unless a lease is exempt, therefore void rentalsmust and extent that it claims to walve the rights, remedies, requiremen ofthe Act. facility: occupancy 1. Exclusions ( § 83.42 , FS ) , under a contract and the like houses, The Act does not apply to : residency or detention for sale ofa dwellingunit occupancy by proprietary occupancy by an owner of a condominlum unit. occupancy lease holder in hotels in a cooperative apartment or

Landlord's Right of Access

Landlord 's Access to Dwelling Unit ( § 83.53 , FS ) . The landlord may enter the dwelling unit: with consent from the tenant; in case of emergency: when the tenant unreasonably withholds consent to enter or ifthe amount of time without being current on the rent or notifying the landlord of the tenant is absent for an extended intended absence. In this context, an extended period of time is equal to one-half the time for periodic rental payments (15 days if rent is paid on a monthly basis).

Landlord Remedies

Landlord Remedies 11. Landlord 's Remedies Upon Breach by Tenant ( § 83.595 , FS ) , I f a ten an t breaches the lease and the landlord has obtained possession, or if the unit is surrendered or abandoned by the tenant, the landlord may (cont.): Stand by and do nothing, holding the tenant liable for rent as it comes due. Charge liquidated damages or an early termination separate addendum when the lease was signed. This amount must not exceed fee, as agreed upon in a months' rent. In the case of an early termination fee, the landlord may not require more than 60 days' notice from the ten ant before the date of early termination.

Property Management

PROPERTY MANAGEMENT. Property management is the act of leasing and managing property for others. Florida requires property managers to be licensed as a broker because renting and leasing are real estate activities. However no license is required ifthe property managing property. Also, a broker's license is not required if a property owner employs someone to manage his property and that employee is paid a salary ofbeing paid a com mission or on a transactional basis). Salaried employees who manage condomin iums or cooperatives do notneed estate licenses, but may require Community Association Manager licenses from DBPR (discussed

Property Management Agreement

Property Management Agreement (cont.) c.Owner's Duties. The owner is responsible for reimbursing the manager for expenses The owner is also responsible for indemnify ing a manager against lawsuits involving the exertion of the manager's duties. - Termination. Management agreemen ts usually exist for a definite duration and include provisions for early termination due to a specific cause - e. Status of Rents/Deposits. The agreement should specify whether security deposits and prepaid rents will be held by the broker or the owner

Interstate Land Sales Full Disclosure (ILSA)

Property Reports. The Act requires the seller to give the report toa prospective lot purchaser prior to the time a purchase agreement is signed. The seller is also required to have the prospective buyer sign a receipt acknowledging that they received the property report. Property Reports contain the following in formation: distances to nearby communities existence ofmortgages liens the property; over paved or un paved roads whether contract payments are placed in escrow; availability and location sewer and water service, or septic tanks and wells: present and proposed utility ofrecreational facilities, availability of foundation conditions that could septic tanks, type of title services and charges, the number of homes currently occupied; cause problems construction or in using the buyer may receive and when it should be received. If the developer fails to either register the development with CFPB or provide a copy of the current property report before the buyer signs a con tract, the buyer has up to 2 years to cancel the con tract This fact must be clearly stated in all purchase agreements. and get his or her money back

Reasonable Modifications

Reasonable Modifications 6.Leasing to Handicapped Persons. In addition to prohibiting discrimination, the Fair Housing Act requires landlords to do the following a. Reasonable Modifications. Handicapped persons may reasonably necessary modifications individual units (pre- and post-1991 construction) For covered leased units built after March 13, 1991, covered landlords must make public doors that allow passage of wheelchairs. Reasonable Modifications: EXAMPLE: It is reasonable require unreasonable to require that a widened doorway be restored to its original width.

Rent Due

Rent ( § 83.46 FS ) . Unless otherwise payable at the beginning ofeach rent paymment period. Ifa lease containsno provision as to rent is payable. For example, if a lease requires rent to be month-to-month lease unless the agreement states otherwise paid monthly, that is a

Retaliatory Conduct

Retaliatory Conduct 12 , Tenant 's Defenses to Action for Rent or Possession ( § 83.60 FS ) Retaliatory Conduct ( § 83.64 , FS ) ( cont ) , Prohibited Practices ( 583.67 , FS ) ( cont ) » Prohibiting a tenant from displaying one portable, removable United States flag, » Removing outside doors, locks, roof unless the purpose for main tenance, repair or replacement. walls, or windows of the unit Removing the tenant's personal property action is taken after surrender, abandonment, recovery ofpossession from the unit, unless such after the last ten ant's death, or a lawful eviction

Security Deposits and Advance Rent

S. Security Deposit / Advance Rent ( § 83.49 , FS ) ( cont . ) the landlord intends to file a end of her lease term, the status of the f. Upon Termination of the Lease. Ifa tenant is vacating the premises at the security deposit will depend on whether claim for damages. Ifthe landlord does not intend to claim any damage, he has 15 days to return (plus required interest). Ifthe landlord does the full security deposit to the intend to impose a intention and the reasons for the claim, he has 30 days to mail claim.

Security Deposits and Advance Rent

S. Security Deposit / Advance constitutes compliance security deposits and the landlord-tenant Rent ( § 83.49 , FS ) . with all other relevant Florida statutes relationship. If there Compliance with the Act pertaining to rental is a conflict related deposits, this over the other sections of Florida to the handling of escrow law. For example, without having to comply with the regular the Act allows section will prevail brokers to disburse security deposits notice and settlement procedures.

Security Deposits and Advance Rent

Security Deposit / Advance Rent ( § 83.49 , FS ) ( cont . ) f. Upon Termination of the Lease (cont.). This notice shall be mailed to the tenant's last known required if the tenant fails to provide a forwarding mailing address, but is not address. If the landlord within the 30 day period, he forfeits the right to deposit and may not seek a setoff fails to give the required notice security impose a claim upon the action for damages after returming the deposit. against the deposit, may file an deduct the claim Ifa tenant does not object to this notice within 15 days, the landlord amount and send the remaining balance within 30 days after Failure to make a timely objection doesnot when either such notice was originally sent. waive the tenant's right to seek damages in a separate party sues regarding their right prevailing party entitled to receive court costs plus reasonable attomey's action. Also note that

Security Deposits and Advance Rent

Security Deposit/Advance Rent ($ 83.49, FS) (cont.) must give written notice to the -b. Notice on Where Deposit is Held. The landlord tenant on where the security deposit is being held (or that the landlord has posted a surety bond) and whether the tenant is entitled to disclosure must be in the lease agreement or provided of the advance rent or security deposit. The disclosure must also state the within 30 days after receipt interest on the deposit. Such following

Federal Fair Housing Laws

Specific Laws and their Effects (cont.) e. The Americans with Disabilities Act (ADA). Signed in to law in 1990, the Americans with Disabilities Act (ADA) gives civil rights protections to individuals with disabilities that are like those provided to individuals on the basis of race, sex, national origin, and religion. It guaran tees equal opportunity for individuals with disabilities in employment, public accommodations, transportation, state and local government services, and telecommunications.

Retaliatory Conduct

Tenant 's Defenses to Action for Rent or Possession ( § 83.60 , FS ) c. Retaliatory Conduct (S 83.64, FS) (cont.) i . Prohibited Practices ( 583.67 , FS ) ( cont . ) Causing the termination or interruption funished to the tenant, limited to, water, heat, light, electricity, directly or indirectly. utility This includes, but is collection, refrigeration. gas, elevator garbage reasonable access to the unit, by any Preventing tenant from gaining means. This includes, but is not limited to, changing the locks. Discriminating against amember unit for rent or in any other lease terms. of the Armed Forces when offering a

Termination of Lease by Tenant

Termination of Lease ( § 83.56 , FS ) - a.Termination by Tenant for Landlord Breach (cont.) ili. Casualty Damage ( 83.63, FS): Casualty damage isnot necessarily a landlord breach. Nevertheless, the tenant may immediately vacate if the premises are damaged tenant's enjoyment of the property is substantially was not created or caused by the impaired. This is only terminate the lease and or destroyed such that the applicable if the damage wrongful act of the has actual Operates as Waiver: Ifa tenant rent (or accepts lease), that operates the lease or bring a civil action waiver of the tenant's other performance iv.Acceptance of Rent Performance knowledge of noncompliance than what is required under the right to terminate particular noncompliance. However, tenant's rights with respect to any subsequent or continuing this does not waive the noncompliance the landlord.

Termination of Lease by Tenant

Termination of Lease ( § 83.56 , FS ) -a Termination by Tenant forLandlord Breach ( ) . Casualty Damage ( § 83.63 FS ) : Casualty damage is not necessarily landlord breach. Nevertheless, the tenant may terminate the lease and immediately vacate if the premises damaged destroyed such that the tenant's enjoyment of the substantially impaired. This is only applicable if the damage was not created caused by the negligent wrongful act of the tenant. iv.Acceptance of Rent Performance Operates as Waiver: Ifa tenant has actual knowledge of non compliance still pays rent (or accepts other performance than what is required under the lease), that operates bring a civil action of the tenant's right to terminate the lease or for that particular non compliance. However tenant's rights with respect to any subsequent or continuing this does not waive the noncompliance by the landlord.

Termination of Lease by Tenant

Termination of Lease ( § 83.56 , FS ) a.Termination by Tenant for Landlord Breach i.7 Day Notice: If a landlord fails to materially comply with his lease after providing must specify the maintenance obligations or lease provisions, the tenantmay terminate the a 7 day written notice to the landlord. This notice that the tenant intends to the 7 day time frame terminate if the noncompliance and state landlord doesn't comply within

Termination of Lease by Landlord

Termination of Lease 83.56 , FS ) - b. Termination by Landlord for Tenant Breach (cont.) ii. 3 Day Notice for Nonpayment of Rent: If a tenant fails to pay rent on time, the landlord may issue a 3 day written notice demanding payment or possession of the premises. This time frame excludes legal holidays. Ifa tenant does not pay within the allotted time, the Saturday, Sunday, and landlord may terminate the lease landlord has actual ili. Acceptance Rent or Performance Operates Waiver: Ifa knowledge of a noncompliance and still accepts rent what is required under the lease), right to terminate the lease from the tenant (or accepts other than that operates as a waiver of the landlord's bring a civil action for that walve the landlord's rights with respect to any continuing noncompliance by the tenant. particularnoncompliance. However this does subsequent or

Termination of Tenancy with Specific Duration

Termination of Tenancy with specific Duration ( § 83.575 , FS ) . A lease with a notice to the landlord before leaving at the end ofthe specific duration may require a tenant to provide rental period. However, this is only has the same requirement to tell a tenant if his lease will not be renewed. The rental allowed if the landlord agreement may not require tenant in such situation. The lease days' the landlord or required notice, he may be liable to the may also provide that if a tenant fails to glve this landlord for liquidated damages.

Property Management Agreement

grow a well-drafted will clearly specify the duties 3.Property Management Agreement. The most successful business relationship property management and obligations of the owner and that is specifically set forth under the manager. The agreement. This agreement manager cannot exceed the authority agreement. The agreement should outline the manager's deposits, hire contractors, pay a. Manager's Duties/Authority. authority to: collect rent: handle security handle repairs hire employees screen tenants evictions and tenant disputes and accounting and bookkeeping. negotiate leases, handle b. Compensation. Managers receive n rental income received), or some other method either a flat fee, a percentage fee (based agreeable to the parties.

Property Management

managed by property managers are: rentals, etc.): condomin 1.Markets. The most common properties office or retail; residen tial (single-family homes, multi-family homes, vacation cooperatives and community association relationships. 2.Owner-Manager Relationship. Therefore, the property manager must main The property manager represents the owner tain a constant line ofcommunication with the owner conceming the condition of the property, tenants, vacancy rate, and (retum investment). This is especially important absentee owner Like any employer the overall because, in many cases, the person is an owner has the right to evaluate a property manager's performance.

Early Termination upon Foreclosure

new owner must provide tenant occupies a dwelling 14. Termination of Rental Agreement Upon Foreclosure (5 83.561, FS). Ifa sold in foreclosure, the new owner is not required honor the existing tenant's lease unless she assumes that existing lease agreement or enters into a new lease agreement with the tenant. In cases of lease termination, a 30 day written notice to the tenant before requiring protected against retaliatory conduct. However within the allotted time frame, the new owner apply them to vacate. The tenant remains tenant does not writ of possession to remove the tenant and any personal belongings from the premises. apply when: (i) the tenant is the mortgagor in the This notice requirement does not subject foreclosure, or is the mortgagor's child, spouse, or parent, (ii the lease did not result from an arm's length transaction; or(ii the lease allows a tenant to pay substantially less than fair market rates, unless the reduction in rent is due to a federal, state, or local subsidy.