Fair Housing Act Accessibility Rules for Apartments Built After March 13, 1991

On this page

1. Which buildings and units are covered?
2. What are the seven requirements?
3. Why should a buyer care?
4. How to check a building before you buy
5. What should investors see?
6. How DoorRaise fits in
7. FAQ

Apartment buildings designed and built for first occupancy after March 13, 1991 must meet the Fair Housing Act's accessibility design requirements, set out in 24 CFR 100.205. The rules cover "covered multifamily dwellings": every unit in a building with 4 or more units that has an elevator, and every ground-floor unit in other buildings with 4 or more units. Those units and the building's public and common areas must meet seven requirements, from an accessible entrance and route to usable kitchens and bathrooms and walls reinforced for grab bars. If you buy a building from 1991 or later, check compliance in due diligence: fixing violations after the fact can mean costly retrofits, and fair housing cases are brought against owners as well as the architects and builders.

This guide explains which buildings are covered, the seven requirements and how to check a building before you buy. It adds to apartment property due diligence.

Which buildings and units are covered?

Under 24 CFR 100.201, covered multifamily dwellings are:

• Buildings with one or more elevators and 4 or more units: every unit.
• Other buildings with 4 or more units: the ground-floor units.

The rules apply to dwellings first occupied after March 13, 1991. A building counts as earlier if it was occupied on or before that date, or if its last building permit (or renewal) was issued on or before June 15, 1990.

A garden-style complex built in 2005 with three-story walk-up buildings has covered ground-floor units in each building. A 1985 building is not covered by the design rules, even if renovated later, though new construction within it can raise its own questions.

What are the seven requirements?

Paraphrasing 24 CFR 100.205:

1. An accessible building entrance on an accessible route, unless terrain or unusual site features make it impractical.
2. Accessible public and common use areas, such as the leasing office, mailroom, laundry, pool and parking.
3. Doors wide enough for wheelchairs into and within the building and units.
4. An accessible route into and through each covered unit.
5. Light switches, outlets, thermostats and other controls in accessible locations.
6. Reinforced bathroom walls so grab bars can be added later.
7. Usable kitchens and bathrooms, with room for a person in a wheelchair to maneuver.

HUD recognizes several safe harbors, such as specified editions of the ANSI A117.1 standard and the Fair Housing Act Design Manual, for meeting these technical requirements.

Why should a buyer care?

• Retrofit cost. Common problems (steps at unit entries, narrow doors, high thresholds, controls set too high or low, inaccessible parking and routes) can be expensive to fix across many units.
• Lawsuits and complaints. Fair housing groups test newer buildings, and HUD and the Department of Justice enforce the design rules. Cases often name the developer, architect and builder, and can also involve current owners, because a court-ordered fix needs the owner's cooperation and access to the property.
• Lender and insurer questions. Some lenders ask about pending fair housing claims; a claim can also affect insurance.

How to check a building before you buy

1. Confirm the dates. Find the building permit and certificate of occupancy dates for each building.
2. Ask the seller for any accessibility surveys, HUD or state complaints, lawsuits or settlements, and the records of any retrofits.
3. Order an accessibility review for post-1991 properties, separate from the general property condition report. See syndication due diligence checklist.
4. Walk a covered unit with a tape measure: entry step and threshold, door widths, bathroom clearances, outlet and switch heights.
5. Negotiate. If problems turn up, ask for a price reduction, a seller-funded escrow or seller indemnity for claims, and get legal advice.
6. Plan reasonable accommodations. Every owner must respond to accommodation and modification requests from residents. Make sure your property manager has a written process. See property management companies.

What should investors see?

If the building is covered and the review found issues, describe the findings, the plan and the budget in the offering documents, and list any pending claims in the risk factors. See how to read a PPM.

How DoorRaise fits in

DoorRaise helps sponsors raise equity for apartment buildings with 5+ units from their friends and followers under Rule 506(b) or 506(c). It prepares the standard offering documents, forms the LLC, files Form D and state notices, and verifies accredited investors for 506(c) deals. Escrow is at Enterprise Bank & Trust, an FDIC-insured bank, and investors fund by wire only. See pricing. DoorRaise is not a law firm, broker-dealer, investment adviser, funding portal or bank.

Ready to raise? Create your free sponsor page or see pricing.

FAQ

Do the Fair Housing Act design rules apply to a 1980s building?

No, not the design and construction rules, which cover buildings first occupied after March 13, 1991. The rest of the Fair Housing Act, including reasonable accommodations and modifications, applies to all buildings.

Are second-floor units in a walk-up building covered?

In a building without an elevator, only the ground-floor units are covered by the design rules.

Does renovating units trigger the design rules?

The design rules apply to new construction for first occupancy after the cutoff. Renovations can raise other code and accessibility requirements, so check local building codes with your architect.

Is the leasing office covered by the ADA?

Areas open to the public, such as a leasing office, are generally places of public accommodation under the Americans with Disabilities Act, in addition to the Fair Housing Act's common-area rules.

Next step: see other property risks to price in apartment syndication risks for investors.

Sources

• 24 CFR 100.205, design and construction requirements
• 24 CFR 100.201, definitions (covered multifamily dwellings)
• 42 U.S.C. 3604, discrimination in the sale or rental of housing

This article is general information, not legal advice. Talk to a fair housing attorney and an accessibility consultant about your property. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.