Key Takeaways
- Kentucky fair housing law (KRS 344) mirrors federal Fair Housing Act protections
- Kentucky adds additional protected classes including familial status and sexual orientation
- Violations can result in both KREC discipline and civil penalties
- Exemptions exist for owner-occupied small buildings and religious organizations
- Steering, blockbusting, and redlining are all prohibited practices
Last updated: January 2026
Kentucky Fair Housing Laws
Kentucky fair housing laws, primarily found in KRS Chapter 344, work alongside federal protections to prohibit discrimination in housing.
Protected Classes
Federal Protected Classes (Fair Housing Act)
| Class | Description |
|---|---|
| Race | All racial groups |
| Color | Skin color |
| Religion | All religious beliefs |
| National origin | Country of origin |
| Sex | Gender |
| Familial status | Families with children under 18 |
| Disability | Physical or mental impairments |
Kentucky Additional Protections
| Class | Description |
|---|---|
| Sexual orientation | In some jurisdictions |
| Gender identity | In some jurisdictions |
| Smoker/non-smoker | In some contexts |
Note: Some Kentucky cities have additional local protections.
Prohibited Practices
Discrimination in Sales and Rentals
| Prohibited Action | Description |
|---|---|
| Refusing to sell or rent | Based on protected class |
| Different terms | Offering different prices or conditions |
| False availability | Claiming unavailable when it is |
| Failure to negotiate | Refusing to deal |
Steering
Steering is directing buyers/renters toward or away from neighborhoods based on protected class:
| Example | Why Prohibited |
|---|---|
| "You'd be more comfortable in..." | Limiting housing choice |
| Showing only certain areas | Discriminatory practice |
| Discouraging certain neighborhoods | Based on race, etc. |
Blockbusting
Blockbusting is inducing panic selling based on protected class entry:
| Example | Why Prohibited |
|---|---|
| "Property values will drop when..." | Creates fear, discrimination |
| Predicting neighborhood change | Based on protected class |
Redlining
Redlining is refusing to provide services to certain areas:
| Example | Why Prohibited |
|---|---|
| Refusing loans in certain areas | Discriminates by area |
| Insurance denial by neighborhood | Often race-based |
Exemptions
Limited Exemptions
Some exemptions exist under fair housing law:
| Exemption | Details |
|---|---|
| Owner-occupied small buildings | 4 or fewer units |
| Single-family homes by owner | Without broker, limited |
| Religious organizations | For members, non-commercial |
| Private clubs | Non-commercial lodging |
No Exemption for Licensees
| Important | Rule |
|---|---|
| Licensed real estate professionals | Cannot claim exemptions |
| Must comply | Even if property owner could be exempt |
| Professional standard | Higher duty |
Reasonable Accommodations
For Persons with Disabilities
Landlords/sellers must:
| Requirement | Example |
|---|---|
| Reasonable accommodation | Allow service animal despite pet policy |
| Reasonable modification | Allow tenant to install grab bars |
| Not charge extra | For accommodation itself |
What is "Reasonable"?
| Reasonable | Not Reasonable |
|---|---|
| Changing rules | Fundamental alteration |
| Physical modifications | Undue financial burden |
| Communication assistance | Safety hazard creation |
Consequences of Violations
KREC Discipline
| Violation | Consequence |
|---|---|
| Fair housing violation | Suspension to revocation |
| Pattern of discrimination | Revocation likely |
| Single incident | Warning to suspension |
Civil Penalties
| Source | Penalties |
|---|---|
| HUD complaints | Fines up to $16,000 first offense |
| DOJ litigation | Much higher fines possible |
| Private lawsuits | Actual and punitive damages |
| State agencies | Additional penalties |
Criminal Penalties
For serious violations involving force or intimidation:
- Federal criminal penalties possible
- State criminal charges possible
Best Practices
For Licensees
| Practice | Benefit |
|---|---|
| Equal treatment | Show all available properties |
| Document everything | Protect against claims |
| Consistent policies | Apply to all clients |
| Training | Stay current on requirements |
| Report concerns | Don't ignore violations |
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Test Your Knowledge
Which of the following is an example of steering?
A
B
C
D
Test Your Knowledge
Can a Kentucky real estate licensee claim the owner-occupied exemption under fair housing law?
A
B
C
D
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