On September 15, 2016, the U.S. Department of Housing and Urban Development (HUD) issued guidance on how the nondiscrimination provisions in the Fair Housing Act (FHA) apply to persons who consider an individual’s “Limited English Proficiency” (LEP), or limited ability to speak, read, write, or understand English, in housing transactions. The “Office of General Counsel Guidance on Fair Housing Act Protections for Persons with Limited English Proficiency” (the “Guidance”) addresses liability for both intentional discrimination and practices that have a disparate impact. While the primary focus is potential discrimination in renting a dwelling, the Guidance also discusses mortgage loan transactions.

LEP is not a new concept in housing and housing finance. Like all federal agencies that provide services to the public, HUD has been required to make its services and assistance equally available to LEP persons as those services are made available to English speakers since President Bill Clinton’s 2000 Executive Order 13166, “Improving Access to Services for Persons with Limited English Proficiency,” which coincided with a release of guidance from the Department of Justice. On January 22, 2007, HUD issued regulations, as required by Executive Order 13166, clarifying the obligations of programs that receive federal financial assistance with respect to LEP persons. Those regulations provide that recipients of federal financial assistance have an obligation under Title VI of the Civil Rights Act to assist LEP persons with access to federally funded programs.