Court Says HOA’s Biased Enforcement of Its Rules Subjects It to Liability Under Federal Discrimination Laws

This case involved an action by an African American owner (“Owner”) of a property against her property owner’s association (“Association”) based on claims of discrimination.  In her action, Owner alleged that she and her family were subject to: (i) harsher enforcement of community rules compared to White residents; (ii) denial of access to common areas (e.g., basketball courts); (iii) harassment at HOA meetings; (iv) discriminatory citations; and (v) unequal treatment that eventually forced her to sell her home. In her lawsuit, Owner contended that Association’s wrongful conduct violated the Federal Fair Housing Act (“FHA”) and the Civil Rights Act.

The trial court granted Association’s motion to dismiss the case on the grounds that the FHA does not cover the discriminatory conduct alleged to have occurred after Owner had purchased her home, and because the court found that Owner failed to allege with specificity the actual terms in Association’s governing documents that were allegedly violated. The court further found that Owner’s claims under the Civil Rights Act failed because Owner did not show how the Association’s conduct infringed on her rights to inherit, purchase, lease, sell, hold, or convey personal property.  Owner appealed the trial court’s decision.

The appellate court reversed the trial court’s decision and: