The Fair Housing Act Creates Another Compliance Exposure For Healthcare Organizations

Several New York assisted living providers reached a $400,000 settlement following allegations of discrimination against wheelchair users.

The lawsuit, filed by the Fair Housing Justice Center (FHJC), accused multiple adult care facilities of violating the Fair Housing Act, the Rehabilitation Act, and the Affordable Care Act by denying admission to prospective residents based on their use of wheelchairs.

The FHJC's investigation revealed that these facilities had blanket policies that excluded individuals with mobility impairments, rather than assessing applicants based on the level of care they required.

The settlement, finalized in early 2025, requires the involved facilities to adopt nondiscrimination policies, implement reasonable accommodation measures, and provide staff training on fair housing laws. Additionally, the operators must revise their admissions processes, update promotional materials, and ensure their websites do not contain discriminatory language or policies.

Commentary

Healthcare organizations are familiar with the Americans with Disabilities Act, the Rehabilitation Act, and even the requirements of the Affordable Care Act as they related to providing access to people with disabilities. Less known are the requirements of the Fair Housing Act. Even so, as the above source illustrates, the Fair Housing Act presents a risk if healthcare organizations fall out of compliance. 

The Fair Housing Act prohibits discrimination in housing-related activities, including renting, selling, and financing homes.

The law protects individuals from discrimination based on race, color, national origin, religion, sex, familial status, and disability. It applies to most housing transactions, with limited exceptions for owner-occupied buildings with fewer than four units and certain religious or private organizations.

Under the Act, it is illegal to refuse to rent or sell housing, set different terms or conditions, falsely deny housing availability, or engage in discriminatory advertising.

The 1988 amendments strengthened the Act by expanding protections for individuals with disabilities and families with children. These amendments also granted the Department of Housing and Urban Development (HUD) greater enforcement authority.

The final takeaway is that healthcare organizations that provide housing to the disabled should factor in the Fair Housing Act when developing a compliance strategy for residents.

Source: https://www.mcknightsseniorliving.com/news/assisted-living-providers-reach-400000-settlement-over-alleged-discrimination-against-wheelchair-users/

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