In 1968, the Federal Fair Housing Act (FHA) was enacted to protect individuals from discrimination based on certain protected characteristics when they are renting or buying a home, getting a mortgage, seeking housing assistance, or engaging in other housing-related activities. However, a recent class action lawsuit—which is currently on appeal before the federal Sixth Circuit—seeks to stretch one provision of the FHA further than any other case before it, with significant consequences to municipalities.
Under 42 U.S.C. § 3604(a), which codified Section 804 of the FHA, it is unlawful to “make [housing] unavailable” to individuals based on those protected characteristics. Actions such as redlining, discriminatory pricing, racial steering, and discriminatory appraisals have all been held to violate § 3604(a).
But in 2019, a group of individuals filed a class action against the City of Cleveland, Ohio, under § 3604(a). See Picket et al. v. City of Cleveland, Case No. 19-cv-2911 (N.D. Ohio). Their claim? That Cleveland makes housing unavailable when it certifies a tax lien against a property when the owner or tenant has let their water bill become seriously delinquent. (State law allows cities to certify liens in that circumstance, and the plaintiffs do not challenge that authorization.)
Frost Brown Todd LLP – Philip K. Hartmann, Jesse J. Shamp and Anthony R. Severyn
August 22 2024