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What does “undue financial burden” mean?

As a housing cooperative board member, balancing community needs with legal requirements can be challenging. You might encounter a member with a disability requesting reasonable accommodation or modification.

Using the undue burden test

Reasonable accommodations or modifications refer to policy and physical changes to a building to make it accessible for tenants with disabilities. While the Fair Housing Act (FHA) mandates you to provide these requests, your obligation has limits. You may set a boundary if a request creates an undue financial burden.

No fixed dollar amount defines an undue burden. Instead, enforcement agencies use a test to assess whether the request is excessively disproportionate to the co-op’s total operating budget. This evaluates:

  • The total expense of the request
  • The co-op’s overall budgets, reserves and revenue
  • The availability of grants or public subsidies to help offset the cost

Under the FHA, the financial burden for modification usually falls on the requesting tenant. However, if your building receives any federal financial assistance, different rules apply, and the co-op may have to foot the bill.

Exhausting alternative before declining the request

Before you decline a request, the FHA requires you to engage in an interactive process. This involves discussing the request with the resident. Together, you can find alternative, less costly solutions that still meet their needs.

Protecting your board from costly missteps

Rejecting a request based on undue financial burden carries massive legal risks. Consulting a cooperative housing law attorney can help you navigate this matter, which can assist you in protecting your community’s financial assets while properly fulfilling your legal civil rights duties.

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