What constitutes constructive denial of housing accommodation requests? Labor Commission v. FCS Community Management Explained

The Utah Court of Appeals recently clarified when housing providers may be found to have constructively denied reasonable accommodation requests under the Utah Fair Housing Act (UFHA) in Labor Commission v. FCS Community Management.

Background and Facts

The Sackses purchased a home in an HOA-governed subdivision where chickens were expressly prohibited. They later acquired eight chickens to address Natalie’s reactive hypoglycemia and their daughter’s sensory processing disorder. After neighbors complained, the HOA initially denied variance requests. When Natalie invoked the UFHA and requested reasonable accommodation for all eight chickens as emotional support animals, the HOA began a three-month evaluation process. Significantly, the Sackses were permitted to keep all eight chickens throughout this review period. The HOA ultimately offered accommodation for two chickens, which the Sackses rejected.

Key Legal Issues

The central issue was whether the HOA’s three-month evaluation period constituted constructive denial of the accommodation request. The Utah Antidiscrimination and Labor Division found that the HOA’s delay and failure to engage in sufficient interactive process amounted to constructive denial, warranting damages and attorney fees.

Court’s Analysis and Holding

The Court of Appeals reversed, holding that no constructive denial occurred. The court emphasized that constructive denial typically involves situations where applicants are “left in limbo” while housing providers “stonewall.” Here, the HOA conducted a legitimate review addressing health and safety concerns, maintained communication with the Sackses, and most importantly, allowed them to keep all eight chickens during the entire evaluation period. The court noted that the Sackses suffered no harm—they were never fined, threatened, or required to remove the chickens during the review.

Practice Implications

This decision provides important guidance on reasonable accommodation procedures. Housing providers can take reasonable time to evaluate novel accommodation requests, particularly when addressing legitimate concerns like health and safety issues. The key is allowing continued use of the requested accommodation during evaluation and maintaining some level of communication. The decision also suggests that partial accommodations found reasonable by administrative agencies may defeat constructive denial claims, even if the requester desired broader relief.