Fair Housing in NYC: What 2025 Real Estate Investors Need to Know

📌 What Is the Fair Housing Act?

The Fair Housing Act (FHA) is a federal law passed in 1968 that prohibits discrimination in any housing-related activity. Whether you're buying, selling, renting, managing, or financing a property, this law applies to you if you influence who gets housing.

🔐 Protected Classes Under Federal Law:

• Race

• Color

• National origin

• Religion

• Sex (including gender identity and sexual orientation)

• Disability

• Familial status

🗽 NYC's Expanded Human Rights Law

In New York City, housing protections go beyond the federal level, including:

• Citizenship or immigration status

• Marital status

• Lawful source of income (e.g., Section 8)

• Age

• Occupation

• Military status

• Gender identity/expression

🆕 New in 2025: NYC Fair Housing Law Changes You Must Know

As of 2025, NYC added major updates that every investor must follow:

🧾 1. Fair Chance for Housing Act

Now in effect as of January 1, 2025, this law restricts landlords and property owners from using an applicant’s criminal history in housing decisions (with some exceptions, like certain violent felonies).

💡 Impact: If you own or manage a rental property or commercial residential space (like a mixed-use building), you must update your screening process.

⚖️ 2. Weight and Height as Protected Classes

As of November 2023, NYC amended the Human Rights Law to include height and weight discrimination—this applies to housing, employment, and public accommodations.

🚫 Examples of Fair Housing Violations (That Seem Harmless)

❌ Rental Ad: “Perfect for young professionals”

Excludes families and could trigger a familial status violation.

❌ Refusing Section 8 Applicants

Discrimination based on income source is illegal in NYC.

❌ Skipping Applications with Criminal Backgrounds

With the 2025 Fair Chance for Housing Act, this is no longer permitted in most situations.

🏢 What This Means for Commercial Real Estate Investors

Many new investors focus on multifamily, mixed-use, and retail properties. Here’s how fair housing rules apply:

• Tenant screening for apartments above retail spaces? Must follow Fair Housing rules.

• Commercial leasing? While FHA doesn’t apply directly to commercial leases, NYC Human Rights Law may still protect against discriminatory practices if tied to public accommodations.

• Selling to other investors? If you discriminate based on protected class during a transaction, it may trigger liability.

🧠 Best Practices to Stay Compliant

✅ Use Standard Screening Criteria

Apply consistent standards to all applicants—credit score, income, etc.—and document decisions.

✅ Avoid Exclusionary Language in Listings

Replace “No families” with “Quiet environment,” and “perfect for singles” with “open-concept layout.”

✅ Train Your Team

Everyone on your real estate team—from agents to property managers—should understand fair housing laws.

✅ Update Your Leases and Processes

Ensure your leases and tenant communications comply with new 2025 protections, especially related to criminal history and income discrimination.

🏁 Final Thoughts: Play Fair, Scale Smart

Discrimination doesn’t just hurt your tenants—it’s bad for business. Violating Fair Housing laws in NYC can result in:

• Fines of up to $125,000 per violation

• Damaged investor reputation

• Lawsuits and license revocation

As a new investor, complying with the Fair Housing Act and NYC’s 2025 updates gives you peace of mind and helps you build a strong, ethical portfolio.