Is it legal to discriminate in housing? How to get around it?

Question

Let say that I am a real-estate developer (residential) who want to build a community that I can truly call home, would it be possible for me to limit the type of people who is able to buy my property?

Example: Anyone who wants to buy property from this area must undergo a background check along with community vote for approval. If one is not able to obtain 70% yes vote, one cannot move in.

Security will be fully enforced and no one can enter this place without knowing someone that lives here. They must show that they have a reason for being here and provide proof.
Meaning if you live in this place and your friend want to visit, you will have to vouch for that person, and if that person engages in a crime within the community, you might have to move out of the community or perform some community service.

Well, you get the drift. Would it be legal or is this just a dream?

Answer 1

It sounds like you're saying "I only want to live around people who are like me", which runs counter to the spirit of fair housing laws in my opinion. Strictly speaking, as long as your qualifiers aren't tied to discrimination based on federal and state fair housing law, you might be legal.

That said, the framework you've laid out here sounds restrictive enough that I'd be concerned about the appearance of discrimination. For example, what happens if your community ends up being 90% white (or anything else) because your criteria are so narrow? Even though the racial makeup may have nothing to do with your rules, you'd have to defend and prove it in court if a fair housing claim was filed, and that gets expensive.

The other ramification would be that your pool of buyers could become extremely small with all these restrictions. I'd do some research to see if there are any existing communities close to what you propose and how they sold and operate.

Bottom line: I'd talk to a lawyer about it.

Answer 2

As far as voting and the such, you will have to make that some kind of homeowners association with bylaws / constitution fees. The only way to discriminate is age if you make it a 55 plus community. Everything else is a no no and you will surely get fined big time. Even if you come up with a community agreement it can be overturned by government if violates fair housing. We just went through that here with a city called Blackjack MO which tried to limit unmarried couples to only two children. It had been on the books for years but my clients decided to challenge and won. You will want to consult local town where develop will be located for occupancy standards, also hud.gov, and aclu might be good places too.

Answer 3

Co-ops have boards that decide whether or not to grant you the privilege of being allowed to purchase a unit in their building. I don't know if it's the co-op structure that allows them to do things differently, or if any association could theoretically do the same.

And gated communities already exist, where security won't let you in unless you know someone in there and it's verified.

The whole making someone do community service, good luck with that. I'd never buy into that.

Answer 4

What makes you and your buddies so special?

I doubt it's legal, but there again, you probably don't care about stuff like that.
I know legally you can't discriminate, but if you were selling the apartments as condos, then it may be ok.

Answer 5

you can do this communitys like this already exist, like retirement communities they wont let me live there because I am not 55 ..... you can have income guidelines ect. get a lawyer to set it up.

Answer 6

it's not legal to discriminate on basis of race, sex, or religion, but otherwise those kinds of neighborhoods already exist.

Answer 7

KKK?
You cannot discriminate