Information obtained from Fair Housing Project, A Project of Legal Aid of North Carolina
FACTS: A tenant rents an apartment for a year. Three months after entering the lease, the tenant is involved in a car accident. As a result of the car accident, the tenant uses a wheelchair due to their mobility impairment. Additionally, the tenant’s disability prevents them from safely using the stairs inside their loft apartment.
The tenant asks the landlord to break the lease 6-months early without paying an early termination fee. The landlord informs the tenant they may terminate the lease early; however, they must pay the remaining rent due under the terms of the lease.
ISSUE: Does the Fair Housing Act allow early termination of a lease without having to pay a fee?
ANALYSIS: Yes. The Fair Housing Act, as amended by Congress in 1988 makes it unlawful to discriminate in the rental of housing, or in the terms, conditions or privileges of housing, because of a disability. A disability is a physical or mental impairment that substantially limits a major life activity, such as walking, seeing, hearing, speaking, learning, working, or caring for oneself.
Discrimination under the Fair Housing Act includes refusing to make reasonable accommodations in rules, polices, practices, or services, when such accommodations may be necessary to afford such a person equal opportunity to use and enjoy housing. In this case, the tenant has a mobility impairment which will affect their usage of the stairs in their apartment. Therefore, the tenant requests a termination of the lease without incurring a penalty or paying the remainder of the rent as their reasonable accommodation.
For clarity, the Court held in Hughes v. Banfield, 84 Va. Cir. 214 (Va. Cir. Ct. 2012), that allowing a tenant to terminate their lease early without charging fees due to a disability is a common reasonable accommodation. While this is a Virginia case, its reasoning is instructive. Further, the U.S. Department of Housing and Urban Development has issued numerous guidance documents regarding reasonable accommodations under the Fair Housing Act, including setting out a process for housing providers when considering a reasonable accommodation request.
These documents also provide housing providers guidance on suggesting alternative accommodations, participation in the interactive process, and the ability of an individual with a disability to refuse to accept any offered alternative(s) due to the alternative(s) not meeting their specific disability need.
In addition, the Joint Statement from HUD and the United States Department of Justice (“DOJ”) on Reasonable Accommodations (“Joint Statement on Reasonable Accommodations”) also makes clear that a reasonable accommodation may be denied if providing the accommodation is not reasonable, such as imposing an undue financial and administrative burden, or it would fundamentally alter the nature of the provider’s operations.
Reasonable accommodations are determined on a case-by-case basis. However, courts and HUD have recognized circumstances where a person with a disability has a right under the Fair Housing Act to terminate a lease early without fee or penalty. Further, housing providers may not require persons with disabilities to pay extra fees or deposits as a condition of receiving a reasonable accommodation.
In conclusion, if the landlord requires the tenant to pay the remainder of the lease, the landlord may be committing housing discrimination and therefore may open themselves up to liability under the Fair Housing Act.
Resources:
N.C.G.S. § 93A-6(a)(8), and 93A-6(a)(10)
License Law and Commission Rules: Rule 58A .1601
Does the Fair Housing Act Allow Early Termination of a Lease without having to pay a fee?