Owner Education / Hawaii Rental Law
Hawaii Fair Housing Act: An Overview
The protected classes, the practices that count as violations, how complaints are handled, and what compliance looks like for a Hawaii landlord.
Key takeaways
- Fair Housing Compliance Is Mandatory: Landlords and housing professionals in Hawaii must follow both federal and state Fair Housing laws to prevent discrimination and legal liability.
- Know the Protected Classes: Hawaii law protects a broad range of classes, including race, color, religion, sex (including gender identity), sexual orientation, marital status, familial status, disability, age, and HIV status.
- Avoid Discriminatory Practices: Actions such as steering, selective enforcement of rules, biased advertising, or denying applicants with assistance animals are considered violations.
In Hawaii, housing discrimination is prohibited by the federal Fair Housing Act (FHA) and, at state level, by Hawaii Revised Statutes chapter 515, Discrimination in Real Property Transactions. That is a separate body of law from the state’s Residential Landlord-Tenant Code, which governs the tenancy itself. Fair housing law applies to most housing-related activities, including the sale, rental, financing, and advertising of housing.
The Fair Housing Act applies to landlords and anyone else involved in the housing industry, such as real estate agents, property managers, and homeowners' insurance companies.
The Federal Fair Housing Act prohibits discrimination against people based on certain protected classes. These protected classes are race, color, nationality, disability, religion, sex, and familial status.
As a landlord, it’s important to familiarize yourself with the dictates of the Fair Housing Act in Hawaii because compliance helps prevent discriminatory practices, protects you from costly legal disputes, and ensures equal housing opportunities for all applicants.
Luckily for you, our experts at Hawaii Coastal Property Management have you covered in this regard. Here’s a comprehensive overview of the important basics of the Hawaii Fair Housing Act.
What Is the Federal Fair Housing Act?
The FHA was passed in 1968 and is also known as Title VIII of the Civil Rights Act. It guarantees every American the right to equal and fair access to housing regardless of certain protected classes.
The Fair Housing Act of 1968 prohibited discrimination in the sale, rental, and financing of housing based on four protected classes. The classes were: race, color, religion, and nationality.
However, an amendment to the federal law was made in 1974, including gender in the list of protected classes. Later, in 1988, another law change was made to include two more protected classes: familial status and disability.
The 7 protected classes under the Federal Fair Housing Act are: race, color, disability, religion, sex, nationality, and familial status.
The Fair Housing Act was designed to ensure every American has equal and fair access to housing opportunities.
What Is the Fair Housing Act in Hawaii?
Various state and local jurisdictions have expanded on the federal list of protected classes to include further protections. In Hawaii, the list of protected classes includes the following:
- Race
- Color
- Disability
- Religion
- Sex (including Gender Identity/Expression)
- Nationality
- Familial Status
- Sexual Orientation
- Marital Status
- HIV Infection
- Age
Source of income is handled by a different statute. It is not one of the chapter 515 protected classes listed above. It comes from Hawaii Revised Statutes chapter 368F, in force since May 1, 2023, under which a landlord may not advertise that a rental is unavailable to someone in a housing assistance program, discourage such a person from applying, refuse to rent to them, or impose rental conditions on them that differ from anyone else's. The statute defines "housing assistance program" narrowly: a Section 8 housing choice voucher program, or any permanent supportive housing program.
Chapter 368F carries its own exemptions, and one of them matters to most individual owners. It does not apply to a landlord who owns no more than four dwelling units in the state, unless that owner holds more than a 10 percent interest in more than four units. Owners covered by it may still verify the source and amount of an applicant's income and assess creditworthiness in a commercially reasonable way. If you own only a few units, check where you fall before assuming chapter 368F binds you. Chapter 515 applies either way.
Fair Housing Law Violations to Avoid
Under Hawaii Revised Statutes Section 515-3, certain practices are considered discriminatory and should be avoided in housing:
- Showing preference or imposing limitations based on a person’s protected class during the rental or qualification process.
- Denying an application due to race, color, religion, sex, national origin, disability, familial status, or other protected characteristics.
- Attempting to evict a resident in a discriminatory manner.
- Maintaining policies or rules that favor or disadvantage residents based on protected characteristics, including decisions regarding security deposits.
- Steering prospective residents toward or away from certain areas based on assumptions about their background.
- Denying an application because a prospective resident has an assistance animal.
- Using language in rental listings that indicates bias, such as references to marital status, religion, race, or other protected traits.
- Asking questions during screening that relate to protected characteristics, such as sexual orientation, marital status, or disability.
Following these guidelines helps ensure fair and lawful treatment for all prospective and current tenants.
How Fair Housing Violations Are Handled in Hawaii
In Hawaii, complaints of housing discrimination can be filed with the Hawai’i Civil Rights Commission (HCRC). The HCRC investigates allegations of Fair Housing violations, which can include discriminatory rental practices, advertising, or lease enforcement.
In Hawaii, a complaint to HCRC needs to be filed within 180 days of the incident occurring. If a violation is found, the commission can attempt to resolve the issue through mediation or conciliation, and in some cases, legal action may be taken as the HCRC can issue a Notice of Right to Sue.
Penalties can include fines, damages, and orders to change discriminatory practices.
Exemptions Under the Hawaii Fair Housing Laws
While the federal Fair Housing Act (FHA) includes a few narrow exemptions, Hawaii law is stricter in some respects and does not include some of the exemptions available under federal law. Hawaii’s fair housing protections apply to virtually all rental housing, with very limited exceptions.
Below are the main exemptions, and the places where federal and Hawaii law do not match.
1. Religious Organizations, and the Federal Private Club Exemption
Under federal law, 42 U.S.C. section 3607(a) exempts two groups. A religious organization may limit or prefer occupancy of dwellings it owns or operates for other than a commercial purpose to people of the same religion, unless membership in that religion is restricted on account of race, color, or national origin. A private club that is not in fact open to the public, and that provides lodgings incidental to its primary purpose for other than a commercial purpose, may limit or prefer occupancy to its members.
Hawaii law is narrower, and it has no private club exemption at all. Chapter 515 contains no such provision, and section 515-1 directs that the chapter be construed liberally. What Hawaii does have is section 515-8, which lets a religious institution, or a charitable or educational organization it controls, give preference to members of the same religion in a real property transaction, unless membership in that religion is restricted on account of race, color, or ancestry. That is a preference for members of the same religion and nothing wider. It does not exempt the organization from Hawaii's other protected classes. Separately, section 515-4(b) permits refusal on grounds of sex including gender identity or expression, sexual orientation, or marital status, but only for housing owned or operated by a religious institution and used for church purposes, or for a religiously affiliated higher education housing program.
However, they are still prohibited from discriminatory advertising or practices affecting the general public.
2. Housing for Older Persons
Hawaii’s exemption for housing for older persons adopts the federal definition, so a 55-or-older community can restrict on age and familial status only if it meets all three federal requirements: at least 80 percent of its occupied units are occupied by at least one person aged 55 or older; it publishes and adheres to policies and procedures showing an intent to operate as housing for persons 55 or older; and it verifies occupants’ ages through reliable surveys and affidavits, updated at least every two years. Meeting the 80 percent threshold on its own does not establish the exemption.
3. Owner-Occupied Buildings
- Rental in a building that contains housing accommodations for not more than two families living independently, if the owner resides in one of the housing accommodations.
- Rental of a room or up to four rooms in a housing accommodation by an owner or lessor who resides in the housing accommodation.
Tips for Fair Housing Compliance in Hawaii
To reduce the risk of discriminatory lawsuits, landlords should take the following steps:
- Understand Fair Housing Laws: In addition to federal and state regulations, be aware of any local anti-discrimination laws that may apply.
- Apply Consistent Criteria: When screening prospective tenants, ensure the same standards are applied to everyone.
- Treat All Residents Fairly: Enforce lease terms equally and without bias against protected classes.
- Provide Reasonable Accommodations: Support residents with disabilities, including those with assistance animals, as required by law.
- Consider Professional Property Management: A qualified management company can help oversee your rental property, including ensuring compliance with all relevant regulations and requirements.
Bottom Line
These are the important basics of the Fair Housing Act that you should keep in mind when renting out a property in Hawaii. Violations can have steep penalties, not to mention the damage they can have on your reputation as a landlord if you’re found guilty.
Need help staying compliant?
If you have a question or need expert property management help, look no further than Hawaii Coastal Property Management. We can help streamline all your property management needs in Hawaii.
Disclaimer: This blog should not be used as a substitute for legal advice from a licensed attorney in your state. Laws frequently change, and this post might not be updated at the time of your reading. Please contact us for any questions you have in regards to this content or any other aspect of your property management needs.
