Fair Housing Laws in 2025: Compliance, Consequences, and a Checklist for Success

April is Fair Housing Month, and it’s never too early to brush up on the policies that keep properties humming. As Fair Housing regulations continue to evolve, new challenges and opportunities for multifamily owners and operators are ever-present. Compliance with Fair Housing laws is both a legal requirement and an ethical responsibility. Fair Housing policies have become crucial, and property teams continue to adapt to new regulations and expectations to create more inclusive communities and avoid legal and financial consequences.

Jump to a Section

• Key Fair Housing Policies in 2025
• Leveraging Technology for Fair Housing Compliance
• Building Inclusive Communities
• Navigating Challenges and Consequences of Non-Compliance
• Checklist for Fair Housing Success

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Key Fair Housing Policies in 2025

Fair Housing Month this year comes when policies are in a more significant transitional moment than they have been in the past. As changes begin to take effect, fair housing education for multifamily is more imperative now than it has been in years. An aggressive approach to communication and training will ensure that onsite teams are current on regulations and following the most recent policies and procedures for their community.

What regulations will remain in place has yet to be seen as the federal government begins making sweeping changes to the U.S. Department of Housing and Urban Development (HUD), most recently bringing an end to Affirmatively Furthering Fair Housing (AFFH) policies. Other policies that may or may not remain include: 

• “Ban the box” initiatives limit the consideration of criminal history in housing decisions
• Language access requirements that mandate essential information in multiple languages
• Oversight regarding algorithmic bias in resident screening
• Disclosure of environmental risks and offering incentives for improvements in disadvantaged areas
• Reasonable accommodation policies that cover a broader spectrum of disabilities, including mental health and chronic conditions
• Regulations surrounding pre-existing conditions and establishing enhanced health and safety standards
• Economic diversity initiatives covering zoning requirements and mixed-income development incentives

Changes on the federal level, however, do not necessarily affect fair housing on a local level. Federal policies serve as a baseline, and states and metropolitan areas may expand protections to better serve their demographics. Traditional protected classes have expanded in some regions, which may require updates to policies and practices. In addition, property teams may encounter local regulations where systemic discrimination is in greater focus.

The role of technology in property management also brings new considerations. While it streamlines processes, owners and operators must ensure these tools do not perpetuate biases.

Leveraging Technology for Fair Housing Compliance

There are several ways to make this easy on teams. The right technological tools can streamline processes, reduce errors and provide valuable data for decision-making. AI-powered screening tools help eliminate unconscious bias in resident selection by focusing on relevant criteria, and regular audits ensure these systems remain unbiased and practical. In addition, these tools will be valuable for keeping track of critical regulatory and legislative changes.

While technology offers numerous benefits, it remains a tool that must be coupled with strong company policies and a genuine commitment to fair housing principles. As we progress through 2025, technology integration in fair housing practices continues to be essential in creating more equitable housing communities.

Building Inclusive Communities

Building inclusive communities is a cornerstone of fair housing practices, emphasizing environments where diversity thrives beyond basic legal compliance. Creating a sense of belonging is the sum of many parts. While inclusivity is traditionally thought to be achieved through cultural events that celebrate diverse traditions and promote understanding among residents, property development now incorporates inclusive design principles, such as flexible floor plans and multigenerational amenities that accommodate various abilities and ages.

Building truly inclusive communities requires sustained commitment and creativity. As we progress through 2025, the emphasis on creating spaces where every resident can thrive continues to grow, reflecting broader societal shifts toward equity and inclusion.

Navigating Challenges and Consequences of Non-Compliance

Property managers will always face evolving challenges in fair housing, requiring a strategic approach and adaptability. Clear policies are required to balance fair housing with community standards. Navigating these challenges demands ongoing education and a proactive stance. By focusing on compliance and seeking expert advice, teams can manage the complex fair housing environment.

The stakes for fair housing violations are higher than ever, and pre-leasing season is the time to make sure your compliance is up to date. Legal consequences include an increased risk of lawsuits, as more accessible legal resources make litigation more common. Financial penalties have also increased, depending on the severity of the violation.

Fair housing violations also pose a risk to reputation leading up to peak leasing season. In today’s digital environment, discriminatory incidents can quickly spread via online platforms, damaging a company’s brand and making it difficult to attract prospects and retain residents. These consequences impact operations in a competitive market, making fair housing compliance crucial for property teams.

Checklist for Fair Housing Success

Teams need a comprehensive checklist of fair housing regulations and how they function at the community level to ensure compliance and foster inclusion. Following this checklist helps create inclusive communities while maintaining compliance, and consistent implementation ensures that properties lead in promoting equitable housing. Implementing fair housing practices in 2025 requires a proactive and comprehensive approach. Property managers must integrate these practices into daily operations and organizational culture.

The following is a policy and procedure checklist to help teams get started. You can also reference this free fair housing tool kit here.

Policy Checklist

• Policies should make it clear to employees that treating applicants or residents differently based on membership in a protected class is prohibited.
• Ensure your sexual harassment policy lists prohibited behaviors and includes multiple avenues for reporting.
• Assistance animals are not pets, so be sure to have policies specific to assistance animals that are separate from pet policies.
• Evaluate company policies for any unintentional discriminatory effect they could have on groups protected by federal, state, and local Fair Housing law.
• Create a policy that encourages employees to come forward if they witness or become aware of sexual harassment or other forms of illegal discrimination taking place.
• Review your screening policies, particularly those regarding criminal background checks, to ensure they comply with federal, state, and local laws.
• Assess policies and procedures for dealing with “nuisances” as defined by local nuisance ordinances and evaluate whether they comply with the Fair Housing Act (FHA).

Procedure Checklist

• Apply policies equally to all residents; avoid any preferential treatment.
• Train employees how to avoid discriminating against a protected class (race, color, national origin, religion, sex, disability, and familial status), including ways they might discriminate unknowingly.
• Treat sexual orientation and gender identity like any other protected class.
• Advise employees against using any language, written or spoken, that could be construed as discouraging someone from leasing based on their protected class.
• Apply rules about religious gatherings consistently, fairly, and equally.
• Consult legal counsel before evicting a resident who has accused your company of discrimination or harassment, regardless of the reason for eviction or whether the accusation was made directly to you or the authorities.
• Ensure that training clearly addresses the types of behaviors that could be sexual harassment.
• Avoid language or imagery in marketing materials that suggest you are targeting people of a particular race, color, national origin, religion, disability status, familial status, or sex (including sexual orientation and gender identity).
• Avoid advertisements and postings that state “adults only” or “no children allowed.”
• Avoid comments or advertisements that express a preference for residents without children, and be careful that community rules don’t target children (e.g., say, “Skateboarding is prohibited on property” instead of “Children may not skateboard on property”).
• Be consistent and do not selectively apply local nuisance ordinances to residents.
• Promptly investigate all complaints of harassment or discrimination.

As Fair Housing laws in 2025 evolve, staying compliant is more crucial than ever. Grace Hills has the tools you need to equip your teams, avoiding costly penalties and reputational damage. Stay ahead of Fair Housing compliance—download your free Fair Housing Tool Kit and stay ahead in 2025!