Is this a Fair Housing Violation?

"Mrs. Ann Smith" applies with "Mr. Smith" in mid April for a July waiting list.

They are denied due to his credit.

She calls me a week later and says she really isn't going to move in with him, but she and her daugher want to move in and could they apply. I told her I would accept another application but, if he moved in, I would evict them.

She continues to call me about availability for August. I told her she could apply after May 1st for the August waiting list.

She keeps calling asking about August availability and finally sends me her waiting list application this week.

It's just her on the applicatione, not her daughter, and she's using the name "Ms. Ann S. Doe."

I denied her because she is short $7500 to qualify. She really thought she had enough money.

NOW...I am pretty sure she is going to try to apply again. I don't know why she wants in my place sooooo bad! I had this happen once before on another property.

Would it be a fair housing violation if I refused to accept another application from her, even if she applies with another person?

She is wasting my time and I don't trust her. Certainly don't want her on my little property.

She lives out of state and is self-employed as a house cleaner. How is she going to relocate and pick up that many new clients to support her? Something's up!!!!

Always accept applications. Use your guidelines to qualify or disqualify. Credit and criminal backgrounds give you the ability to approve or not to approve. Yes your "feeling" is most likely correct but you have to accept the application.

If you'd had a policy in place already, you would be able to avoid it. I worked for a Memphis-based multifamily that had the rule, "Anyone who has applied and been denied cannot re-apply under any circumstances for 6 months following the date of application." But I wouldn't put that in place now, just to block her.

I would let her apply again. It's her choice to continue to spend money on application fees. The husband probably is going to move in, but until you can prove it, let her apply and if she doesn't meet your rental qualifications, decline the application.

Follow-Up...

She called me, again! She wanted to know why I used her tax returns as verification of income and not her bank statement. She said everywhere she has applied for credit, they have used the bank statements.
(I require the last 30 days print-out of their checking account to look for NSF's).

I told her it was not our policy to use bank statements as a source of verification of income. It also states this in my two-page Resident Selection Criteria.

Since she is a self-employed house cleaner, I asked her about relocating away from her current clients. She said she had clients already set-up in this area and that she has been driving back and forth. She lives about 3 hours away in another state.

REALLY??????

She was asking for a September move-in. I got her rental history verification after I denied her and her lease doesn't expire until September 30th, which means she was breaking her lease, anyway. AND, she had 3 late payments, which is deniable.

This is only a waiting list application!!!

I posted this for your entertainment. Hope you enjoyed it.

We require proof of local income that meets the income criteria before we can start to process an application. Our criteria states applicants must prove income equal or greater than 3x the amount of rent via pay stubs or equivalent. A bank statement will only work if they have 3x the rent times six in the bank (12k), which we will also verify.

Generally, it is good practice to never quote rental criteria verbally over the phone. It is a good idea to have a copy of all rental criteria attached to the application that the applicant is required to sign enforce screening. Most applications do state that if an application is falsified that they will be declined and application fees will be declined. I would explain to the applicant that every community and management company has different criteria and that they should examine the rental criteria for each and that you are following protocol. I would just be cautious of stating anything verbally and only provide things in writing that are company policy and company provided. Fair housing suits can be against the company, as well as you as an individual, so just be careful! Best of luck!

We have a policy that after an applicant is denied that they can reapply in 6 months from the date of denial. They also have a 2 week appeal window after denial but they cant change anything from what they put on the application during this 2 week period. Asking for an appeal just simply gets us to look at it again and possibly reconsider our decision.

I have ran into situations where the applicant was denied because of something they had on the application or their background/credit checks and then they tried to switch it up where they would qualify after they found out the reason for denial. With a property having income guidelines too much income or not enough becomes an issue a lot. Ive had them switch people around 4 or 5 times to get to the right limits to try to get approved. This leaves the door open for fraud etc. so the 6 month waiting period helps with that. This also requires them to pay another application fee etc.....most of the time you dont hear from them again once they find out they cant reapply for 6 months and they will have to repay