Fair Housing Amendments Act of 1981

Fair Housing Amendments Act of 1981 - Enacts into law the short titles "Civil Rights Act of 1968" and "Fair Housing Act."

Amends the Fair Housing Act to expand the definition of "discriminatory housing practice" to include any violation under such Act (thus codifying case law which holds that the obligation of Federal agencies to administer programs affirmatively to further the purposes of fair housing and the prohibition against interference with rights under the Act are separately actionable).

Adds new definitions of "handicap" and "aggrieved person". Excludes from the meaning of "handicap" any impairment consisting of alcohol or drug abuse or which would be a direct threat to the property or safety of others.

Retains the two current exemptions from the prohibition against the discriminatory sale or rental of housing which are given to: (1) an owner of three or less single-family houses; and (2) the owner of a dwelling consisting of four or fewer units who also resides in such dwelling (the "Mrs. Murphy" exemption).

Makes it unlawful for a person in the business of insuring against hazards to discriminate in the issuance or terms of hazard insurance contracts because of the race, color, religion, sex, handicap, or national origin of persons owning, or residing in or near, the dwelling.

Makes it unlawful to: (1) refuse to sell or rent to a handicapped person unless such handicap would prevent a prospective occupant from conforming to specified non-discrimination rules and practices; and (2) discriminate against a handicapped person in the conditions of sale or rental, or in the provision of related services or facilities. Includes within such discrimination a refusal to: (1) permit reasonable modifications to permit access to the premises (but only if a renter agrees to restore the premises to their original condition); and (2) make reasonable accommodations in policies, services, or facilities to afford handicapped persons equal enjoyment of the premises.

States that such discrimination shall not include a refusal to: (1) make alterations at the expense of sellers, landlords, owners, or persons acting on their behalf; (2) make modifications which would unreasonably inconvenience others; and (3) allow architectural modifications which materially decrease the value of a building or alter its intended use.

Adds handicapped persons as a protected class under other existing prohibitions on discriminatory activities.

Modifies the housing financing discrimination provision to proscribe all conduct which denies or "otherwise makes unavailable" financial assistance because of race, color, religion, handicap, or national origin. Includes within such prohibition persons in the business of selling, brokering, or appraising real property.

Provides that it is not a violation of title VIII for real property appraisers to take into consideration factors other than race, color, religion, national origin, sex, or handicap.

Expands the exemption provision to permit a minimum lot size requirement unless it is imposed with intent to discriminate against a protected class.

Directs the Secretary of Housing and Urban Development to delegate the function of presiding over administrative hearings to administrative law judges, appointed by the Attorney General and serving in the Department of Justice. Requires that administrative hearings, as well as conciliation meetings, be held in the locality where the discriminatory practices allegedly occur.

Sets forth the following provisions to insure the independence of such administrative law judges. Forbids such judges from consulting a person or party on a fact in issue, unless notice and opportunity to participate are given. Prohibits Department employees performing investigatory or prosecutory functions from participating in any decision (except as witnesses or counsel). Requires such judges to be appointed from the administrative law judge register established by the Office of Personnel Management. Prohibits any person from functioning as a judge in such a hearing if within the previous two years he or she has functioned in an investigatory or prosecutory function for the Department. Makes such judges removable only by the Attorney General for good cause as determined by the Merit Systems Protection Board.

Includes Federal agencies having regulatory authority over financial institutions within the executive departments and agencies which are currently required to administer their housing programs in an affirmative manner.

Establishes a legislative veto procedure with respect to any proposed or existing rule promulgated by any agency under the authority of the Fair Housing Act. Requires proposed rules to be submitted to the Congressional judiciary committees. Provides that such a rule does not become effective if: (1) both Houses of Congress adopt a specified concurrent resolution of disapproval within 90 days of the promulgation; or (2) one House adopts such resolution within 60 days and the other House does not disapprove that resolution within 30 days.

Establishes a new administrative enforcement procedure within the Department of Housing and Urban Development in addition to the current enforcement provisions of title VIII (allowing civil actions by private parties and the Attorney General).

Directs the Secretary to make an investigation of an alleged discriminatory housing practice on his own initiative or upon the filing of a charge by an aggrieved person within one year of the alleged discrimination. Requires the Secretary to attempt to correct the discriminatory practice by informal methods of conference, conciliation, and persuasion.

Continues the current authority of the Secretary to utilize discovery measures. Makes the failure to produce information punishable by a fine of up to $1,000 (current law also permits imprisonment for up to one year).

Makes certain changes in the current requirements for referring charges to State or local agencies for investigation and enforcement. Specifies, with respect to the rights and remedies provided by such agencies, the elements of "substantial equivalency" which permit certification and referrals of discrimination charges. Gives an agency to which a referral has been made 90 days, instead of 30, to commence proceedings.

Requires the Secretary and other Federal agencies to cooperate to avoid duplication of their housing discrimination prevention authority.

Permits an action for temporary or preliminary relief to be brought on behalf of the Secretary in accordance with rule 65 of the Federal Rules of Civil Procedure when the Secretary establishes that voluntary compliance is unobtainable and prompt judicial action is necessary.

Permits the Secretary to file an administrative complaint or refer the matter to the Attorney General for civil action if the investigation supports a finding of reasonable cause, except with respect to matters involving land use controls, which must be referred. Requires the determination of reasonable cause to be made within 270 days of the filing of the charge by an aggrieved person.

Specifies the hearing procedures to be utilized if an administrative complaint is issued. Requires the Secretary to certify that conciliation has been attempted before commencement of an administrative hearing. Permits an aggrieved person to intervene in such proceeding. Permits the administrative law judge to award appropriate relief and a civil penalty of up to $10,000, but provides for a five-day period after the conclusion of the hearing for the purpose of conciliation, before such judge may announce any decision. Prohibits the Secretary from modifying an order or decision of the judge.

Permits the filing of a petition for judicial review of a final order in Federal district court within 30 days after service of such order. Directs the court to make a de novo determination of the adequacy of the findings of fact and conclusions of law to which objection is made. Permits the court to receive further evidence or recommit the matter to the administrative law judge under certain circumstances. Authorizes the judge to accept, reject, or modify the findings of fact and conclusions of law.

Authorizes the administrative law judge to assess civil penalties for noncompliance with a final administrative order.

Makes certain revisions in the private right of action for aggrieved persons under the Fair Housing Act. Extends the statute of limitations from 180 days to two years. Disallows simultaneous administrative and judicial proceedings involving the same charge. Permits the Attorney General to intervene upon certification that the civil action is of general public importance. Continues the current provision permitting the appointment of Counsel. Removes the existing $1,000 limit on punitive damages for willful violations.

Continues the authority of the Attorney General to initiate civil actions where there is reasonable cause to believe that a pattern or practice of resistance to title VIII rights has occurred. Permits the intervention of aggrieved persons in such actions.

Permits the award of costs, including reasonable attorney fees, to prevailing parties in court and administrative proceedings (current law permits an award of attorney's fees only to prevailing parties who are financially unable to assume them).

Authorizes appropriations for this Act, effective October 1, 1981.