4.2 Indiana Fair Housing Laws

Indiana Fair Housing Law

Indiana's housing-discrimination statute is the Indiana Fair Housing Act, codified at IC 22-9.5, part of the broader Indiana Civil Rights Law. It is substantially equivalent to the federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968, as amended in 1988), which is why complaints can be handled at the state level.

The Seven Protected Classes

Indiana does not add statewide classes beyond the federal seven, but local ordinances (for example, in Indianapolis/Marion County, Bloomington, and Fort Wayne) may add categories such as sexual orientation, gender identity, age, or veteran status. A licensee must comply with the strictest applicable layer — federal, state, and local. On the exam, if a question describes conduct in a city with an ordinance protecting sexual orientation, the licensee is bound by that local rule even though it is not in IC 22-9.5.

Disability Accommodations

Disability protections under IC 22-9.5 and the federal FHA go beyond a simple bar on refusal. A housing provider must:

• Allow a tenant to make reasonable modifications to the unit at the tenant's expense (and may require restoration on move-out).
• Make reasonable accommodations in rules, such as waiving a no-pets policy for a service or assistance animal — and an assistance animal is not a "pet," so no pet deposit may be charged.
• Comply with design-and-construction accessibility standards for covered multifamily buildings (4+ units) first occupied after March 13, 1991.

Refusing a documented assistance animal or a reasonable modification request is a frequently tested violation.

Prohibited Acts

Under IC 22-9.5 it is unlawful to:

1. Refuse to sell, rent, or negotiate because of a protected class.
2. Discriminate in terms, conditions, or services of a housing transaction.
3. Make, print, or publish discriminatory statements in advertising.
4. Represent that housing is unavailable when it is in fact available.
5. Blockbuste — induce panic selling by suggesting a protected class is moving into an area.
6. Steer — direct prospects toward or away from areas based on protected class.
7. Discriminate in lending or appraisal (redlining, unequal terms).

The Indiana Civil Rights Commission (ICRC)

The ICRC investigates housing complaints, attempts conciliation, holds administrative hearings, and coordinates with the U.S. Department of Housing and Urban Development (HUD). Note that IREC regulates licensees and can discipline an agent who discriminates, but the ICRC — not IREC — is the fair housing enforcement agency.

Filing, Penalties, and Exemptions

Filing a Complaint

Civil Penalties

Indiana's penalty tiers track the federal maximums, which are inflation-adjusted. Current HUD/federal maximum civil penalties are:

Beyond civil penalties, courts and the ICRC may award actual damages (out-of-pocket loss), compensatory damages (humiliation, emotional distress), punitive damages for willful discrimination, injunctive relief, and reasonable attorney's fees. A frequent exam trap pairs a stale dollar figure with the wrong tier — focus on the escalation pattern (first / repeat-within-5-years / repeat-within-7-years), not the exact dollars.

Limited Exemptions

Critical rule: Discriminatory advertising is never exempt, and a licensee may never use any exemption to participate in discrimination. The "Mrs. Murphy" exemption applies only to the owner acting alone — the moment a licensee is involved, full fair housing law applies.

Advertising and Agent Duties

All advertising should carry the Equal Housing Opportunity logo or statement and avoid language signaling a preference. Phrases like "perfect for a Christian family," "ideal for empty-nesters," or "no kids" are violations because they target religion, age/familial status. If a seller gives a discriminatory instruction ("don't show it to anyone of that background"), the agent must refuse the instruction and, if the client persists, withdraw from the representation — carrying out the instruction is itself a violation.