What Is Familial Status?
Familial status refers to a protected class under federal civil rights laws that prohibits discrimination against individuals based on the presence of children under the age of 18 in a household. This legal classification is a critical component of regulatory compliance within sectors such as housing and lending. It specifically protects households that include minor children living with a parent or legal guardian, those who are pregnant, and individuals who are in the process of obtaining legal custody of a minor, such as through adoption or foster care30, 31.
History and Origin
The concept of familial status as a federally protected characteristic was formally introduced in the United States with the Fair Housing Amendments Act of 1988, which became effective in 198929. Prior to this amendment to the Fair Housing Act, families with children frequently encountered significant barriers in the housing market. Landlords might have advertised "adults-only" properties or refused to rent to families with children, severely limiting their housing options. The 1988 amendment aimed to address these historical inequities by making it illegal to discriminate against individuals simply because they have children, applying to most housing transactions including renting, leasing, selling, and even mortgage lending28. The U.S. Department of Justice's Civil Rights Division plays a key role in enforcing these protections nationwide.27
Key Takeaways
- Familial status is a protected class under federal anti-discrimination laws, primarily the Fair Housing Act and, in some contexts, the Equal Credit Opportunity Act.
- It protects individuals who have children under 18 living with them, are pregnant, or are in the process of obtaining legal custody of a child.
- The protection prevents discrimination in housing-related activities, including rentals, sales, and mortgage lending.
- Certain housing for older persons may have limited exemptions from familial status discrimination prohibitions.
- Violations can lead to lawsuits and penalties enforced by government agencies like the Department of Justice and the Department of Housing and Urban Development (HUD).
Interpreting Familial Status
Interpreting familial status involves understanding its broad scope in preventing discrimination. For a property owner or financial institution, it means that decisions related to housing or credit cannot be based on whether an applicant has children. This includes, but is not limited to, refusing to rent or sell, setting different terms or conditions for a rental agreement, providing different services, or making discriminatory statements or advertisements25, 26. The law extends protection to single-parent households and families with adopted or foster children.
Hypothetical Example
Consider a family, the Lees, with two children aged 5 and 8, who are looking to rent a new apartment. They find an advertisement for a spacious apartment in a desirable neighborhood. When they contact the real estate agent, they are informed that the unit is "perfect for a couple or single professional" and that the building has "very strict noise policies not suitable for children." Despite having excellent credit and stable income, the agent suggests other less desirable properties in a different part of town, claiming they are "more family-friendly." This scenario illustrates potential familial status discrimination, as the Lees are being discouraged or denied housing based solely on the presence of their children, a direct violation of the Fair Housing Act.
Practical Applications
Familial status protections have significant practical applications across various financial and real estate transactions. In the housing sector, it ensures that families with children have equal access to housing opportunities, preventing practices such as refusing to rent to families, imposing overly restrictive rules on children's use of common areas, or advertising a preference for households without children23, 24. This extends to every stage of the housing process, from initial inquiries to the terms of a lease or sale22.
Beyond housing, the principles of non-discrimination related to familial status can implicitly touch upon aspects of consumer protection in lending. Although the Equal Credit Opportunity Act (ECOA) does not explicitly list familial status as a protected characteristic, it prohibits discrimination based on sex and marital status, which can indirectly protect families from certain lending practices20, 21. For instance, a lender cannot refuse to consider income from public assistance programs if that income supports a family, nor can they inquire about or penalize a borrower based on assumptions about their family structure or maternity leave, which could constitute sex-based discrimination19. The U.S. Department of Housing and Urban Development (HUD) provides comprehensive guidance and investigates complaints to ensure compliance with these laws.18
Limitations and Criticisms
While providing crucial protections, the enforcement of familial status protections can face complexities. One area of contention involves the "Housing for Older Persons Act (HOPA)" exemption, which allows certain housing developments to operate as age-restricted communities (e.g., 55 and older) without violating familial status laws17. Critics argue that some municipalities may misuse this exemption to limit the development of affordable housing for families and potentially perpetuate socioeconomic or racial segregation16. This can lead to legal challenges as courts strive to interpret the exemption narrowly, ensuring it genuinely serves its purpose of providing specialized housing for seniors, rather than being a tool for discrimination against families14, 15. Despite these challenges, federal agencies like the Department of Justice actively pursue cases alleging familial status discrimination to uphold the intent of the Fair Housing Act12, 13.
Familial Status vs. Marital Status
Familial status and marital status are distinct legal protections, though both relate to an individual's personal circumstances. Familial status specifically concerns the presence of children under 18 in a household, including pregnant individuals or those in the process of securing custody of a minor. Its primary application is in housing anti-discrimination laws, such as the Fair Housing Act10, 11.
In contrast, marital status refers to whether an individual is single, married, separated, divorced, or widowed. This protected characteristic is explicitly covered under the Equal Credit Opportunity Act (ECOA), which prohibits creditors from discriminating against applicants based on their marital status when extending credit9. While a lender cannot inquire about marital status for an unsecured individual account, they can for joint accounts, and they must consider all sources of income, regardless of marital status, when assessing creditworthiness8. The key difference lies in the focus: familial status addresses the presence of children, while marital status addresses an individual's relationship status with a spouse.
FAQs
What does "familial status" mean in real estate?
In real estate, familial status means that it is illegal to discriminate against someone in housing transactions because they have children under 18 living with them, are pregnant, or are in the process of gaining legal custody of a child7. This applies to renting, selling, or lending for a home.
Can landlords have "no children" policies?
Generally, no. A "no children" policy violates the Fair Housing Act's protection against familial status discrimination. However, housing communities specifically designed for older persons (e.g., 55 and older) may be exempt from this rule under certain conditions5, 6.
Does familial status apply to pregnant women?
Yes, familial status protections extend to pregnant women, as well as individuals who are in the process of adopting or fostering a child. They are considered part of the protected class to ensure they are not discriminated against in housing or lending based on their impending or ongoing family expansion3, 4.
What if I believe I've been discriminated against based on familial status?
If you believe you have experienced discrimination due to your familial status, you can file a complaint with the U.S. Department of Housing and Urban Development (HUD) or the Department of Justice. These agencies investigate claims and enforce fair housing laws1, 2.