4.1 Michigan Fair Housing Laws

Two Layers of Fair Housing Law

Every Michigan transaction is governed by two fair housing regimes at once. The federal Fair Housing Act (FHA), Title VIII of the Civil Rights Act of 1968, sets a floor of 7 protected classes. The Elliott-Larsen Civil Rights Act (ELCRA), Public Act 453 of 1976, raises that floor with additional Michigan-only classes. When state law protects a class that federal law does not, the stricter state rule controls. The 35-question state portion of the PSI exam repeatedly tests the difference between the two lists, so memorize the extras.

Protected Classes: Federal vs. Michigan

*Sexual orientation and gender identity or expression were expressly added by the 2023-2024 ELCRA amendments, codifying protections Michigan courts had already recognized. In housing, ELCRA also reaches source of income / lawful source of income in many local ordinances.

Exam trap: If a question asks which class is protected in Michigan but not federally, the answer is almost always marital status, age, height, or weight — never race, color, or national origin (those are federal too).

Enforcement: MDCR and the Civil Rights Commission

The Michigan Department of Civil Rights (MDCR) is the investigative arm; the Michigan Civil Rights Commission is the constitutional body that adjudicates. MDCR is distinct from LARA (which licenses real estate agents) — confusing the two is a classic exam miss. A complainant may file with MDCR, with HUD, or both, because Michigan is a HUD-certified "substantially equivalent" jurisdiction.

Prohibited Practices

Under both ELCRA and the FHA it is illegal to:

1. Refuse to sell, rent, or negotiate because of a protected class.
2. Steering — channeling buyers toward or away from neighborhoods based on a protected class ("You'd be more comfortable on the east side").
3. Blockbusting — inducing panic selling by suggesting that members of a protected class are moving in.
4. Redlining — denying or pricing loans/insurance based on the racial or ethnic makeup of an area.
5. Discriminatory advertising — stating a preference, e.g. "adults only," "perfect for a Christian family," or "no kids."
6. Falsely representing that a unit is unavailable.
7. Failing to make reasonable accommodations/modifications for a person with a disability (e.g., allowing a service animal despite a no-pets policy).

Intent does not matter — a practice with a discriminatory effect (disparate impact) can violate the law even if the agent meant no harm.

The 4-Hour Civil Rights / Fair Housing Requirement

Michigan's 40-hour pre-license course for salespersons must include at least 4 hours of civil rights law and equal opportunity in housing, per LARA rule. This is a state-specific number worth memorizing.

Worked Scenario

A seller tells a Michigan agent, "Don't show my home to anyone over 60 — I want a young family in here." Age is not a federal class, so a national-only review might miss it. But age is protected under ELCRA, so following the instruction is illegal in Michigan. The correct response: refuse the directive, document it, and continue marketing the property to all buyers. Following an unlawful client instruction exposes the agent to MDCR discipline and LARA license sanctions.

Penalties

• Civil: actual damages, punitive damages for willful conduct, and attorney fees to the prevailing party.
• Administrative (LARA): a fair housing violation is independent grounds for license suspension or revocation under the Occupational Code.
• Pattern or practice: enhanced civil penalties and potential federal court action.

Advertising Compliance in Practice

Most fair housing complaints in Michigan begin not with an outright refusal but with language in marketing. ELCRA and the FHA forbid any statement that signals a preference, limitation, or discrimination based on a protected class. Because Michigan adds classes federal law lacks, phrases that pass a national review can still violate state law. Watch for these recurring traps on the exam and in practice:

• "Mature/empty-nester community" or "no children" — implicates familial status and possibly age.
• "Walking distance to the synagogue/church" — can signal a religious preference.
• "Ideal for a single professional" — implicates marital status and familial status.
• "Master bedroom suite fits a tall owner" — generally fine, but "must be physically fit to use the stairs" implicates disability, height, or weight.

The safe approach is to describe the property, never the ideal occupant. An agent who drafts compliant copy and refuses discriminatory client edits both protects consumers and shields their own license, because a fair housing violation is independent grounds for LARA discipline in addition to MDCR liability.