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FORT WORTH-Evanston, IL is a suburb north of Chicago and home to Northwestern University. And earlier this year, the city was the site of an unusual student housing scenario as Interfaith Housing Center settled a federal fair housing suit against Bernsen Management alleging that in one of its off-campus buildings, landlord Bernsen would rent only to Northwestern University students, turning away students and families with children.
According to Viki Rivkin, director of Fair Housing with the Winnetka, IL-based Interfaith Housing Center, a student had called saying that Bernsen Management had a policy in place to rent only to students rather than to students with families. "The Bernsens wouldn't rent to people claiming to be Northwestern students who had children," Rivkin tells GlobeSt.com. "In a place like Evanston, with a large rental population, it becomes difficult for families to find places to rent that are large enough. If you work for the university and have a child and don't want to buy, where do you live?"
Rivkin adds that the Bernsen Management incident hasn't been an isolated one; similar complaints and allegations about other landlords and an unspoken student-only policy when it comes to renting off-campus housing has come to Interfaith Housing Center's attention.
The entire issue of discrimination in housing – including student housing -- falls under Title VIII of the Civil Rights Act of 1968, also known as the Fair Housing Act. At its basis, the FHA prohibits any kind of discrimination in the sale, rental or financing of any kind of housing based on race, religion, color, sex or national origin. An amendment added in March, 1989 expanded coverage of the act to prevent discrimination based on disability or familial status.
Student housing owners and managers understand that any kind of discrimination against renters of any kind, whether in on-campus or off-campus housing, is strictly verboten. They also acknowledge that the Bernsen situation is something to watch, though seems to be an isolated case so far.
"Fair Housing is a very detailed and nuanced thing," comments Robin Rains, managing director with Kayne Anderson Real Estate Advisors in Armonk, NY, which is very active in acquiring and owning off-campus student housing. It also involves a balancing act when it comes to the government, she goes on to say. On the one hand, "Fannie Mae and Freddie Mac provide student housing loans and state, even in the documents, that we have to lease predominantly to students," Rains tells GlobeSt.com. "On the other hand, you have to abide by the Fair Housing Act."
The Fair Housing Act implies that off-campus housing is technically available to all comers, even if those comers aren't students. But Brent Little, who is president of student housing owner, developer and manager Fountain Residential Partners in Dallas points out that the way in which his company markets its properties isn't likely to attract the typical family or non-student renter. "Though non-students are eligible to live at any or our properties, we tend not to attract them, because of our design, locations and marketing programs," Little tells GlobeSt.com.
Rains agrees, pointing out that Kayne's marketing materials and social media features a lot of students. Not working professionals or families with young children -- students. As such, even if a parent with a child likes the idea of renting a large student-oriented apartment for $400 a month versus paying $1,200 a month in a multifamily property down the street, that parent might think twice about it by looking at a brochure featuring students and nothing but.
"If you're a family with kids or an elderly person, the chances are pretty good you're going to take one look at our marketing and understand it may not be the best environment for your situation," Rains says. This isn't to say, however, that some creepy individuals who might like the idea of being near younger adults might not be interested in renting a unit in off-campus housing. Rains suggests that the way to avoid this is through criminal background checks.
Though Little and Rains do acknowledge that the Fair Housing Act dictates that, by law, off-campus student housing serving campuses should be made available to anyone who's interested, including students with children, neither has run into a situation in which a family, or a single-parent student has indicated interest in renting a suite in one of the properties. "I think self-selection takes pretty good care of it," Rains adds.
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