The Fair Housing Act & Zoning – Are They Compatible?
Evidence exists that zoning regulations and restrictions are having a discriminatory effect on the ability of minorities to afford new housing.

Since its passage in 1968, the Fair Housing Act has seen vast changes in its application, from complaints of housing discrimination to accessibility for persons with disabilities. Most recently, concerns about the propriety of zoning regulations that have discriminatory effects have arisen. Three examples illustrate this concern and two of these are in the early stages of litigation.

Texas Study:  More Minorities Priced Out of Home Buying Market

Connelly & NAHB v. City of West Columbia

NAACP, et al. v. Summit County, Utah

Texas Study:  More Minorities Priced Out of Home Buying Market

As communities adopt strict development regulations, more minorities can no longer afford a new home according to a study released by the Home Builders Association (HBA) of Greater Austin. The League of United Latin American Citizens (LULAC) and the National Association for the Advancement of Colored People (NAACP) joined the HBA to share the findings at a news conference in February.

The study, conducted by Impact DataSource, shows that a larger share of Hispanic and African American families are priced out of the new home buying market. The report used the City of Kyle, Texas, as a case study because of two ordinances passed in 2003 that increase the cost of a new home by $20,000. In addition to the HBA, the Texas Association of Builders (TAB) and National Association of Home Builders (NAHB) also commissioned the study.

”Owning a home is particularly important in the Hispanic community,” LULAC representative Tony Diaz said. “It’s disheartening to see evidence that shows a city is making it more difficult for minorities to purchase a home.”

Nelson Linder, President of the NAACP’s Austin Chapter, agrees. ”When a new home price increases by $20,000, a family must find an extra $163 a month to pay for a house payment,” Linder said. “That dollar amount may prevent as many as 58,000 minority families in Texas from being able to move into Kyle — and that’s discriminatory.”

The study shows how many minorities are priced out the market when a home increases from $100,000 to $120,000 in Kyle.

For the Austin-San Marcos Metropolitan Statistical Area:

• 49.4% of African Americans can no longer afford a new entry level home. 
• 45.1% of Hispanics can no longer afford a new entry level home.
• 29.9% of whites can no longer afford a new entry level home.

For the state of Texas:

• 57.8% of African Americans can no longer afford a new entry level home.
• 58.0% of Hispanics can no longer afford a new entry level home.
• 36.2% of whites can no longer afford a new entry level home.

In Kyle, Texas:

• 10.5% of African Americans can no longer afford a new entry level home there.
• 37.3% of Hispanics can no longer afford a new entry level home there.
• 24.8% of whites can no longer afford a new entry level home there.

Connelly & NAHB v. City of West Columbia

NAHB member Kevin Connelly planned to build a low-income housing tax credit project in the City of West Columbia. He received all land use and zoning approvals except one — a letter from the City committing sewer hook-up for the project. The City denied the sewer commitment letter and, as a result, Connelly failed to qualify for tax credits. 

On February 15, 2005, Mr. Connelly and NAHB filed a complaint in a South Carolina federal court, alleging that the City of West Columbia violated the Fair Housing Act when it interfered with development of the low-income project. Demographics and statistics show that the denial of Mr. Connelly’s project had a disproportionate effect on minority residents, who were deprived housing opportunities within the City’s borders.   

NAACP, et al. v. Summit County, Utah

The current zoning restricts development to one unit per 20 acres. A number of disabled county residents filed suit to enable developers to build apartment buildings that can accommodate residents with disabilities. This is the third Utah lawsuit filed by NAACP concerning restrictive zoning issues.

For a description of the suit in Summit County, see www.knowledgeplex.org/news/87605.html.  By following the links in the web site, a copy of the filed complaint is availalbe as well. [ return to top ]