When units for a household member’s disability-related needs are short in supply, what must the owner do?

Allowing physical alterations as a reasonable accommodation is the correct response because it aligns with the Fair Housing Act, which mandates that housing providers must make reasonable accommodations for individuals with disabilities. When a household member's disability-related needs cannot be met due to a lack of available units that are appropriately modified or designed, the owner is obligated to permit modifications.

This could include structural changes to the unit or additions to the property that are necessary for the individual to have equal access and utilize the housing effectively. Such accommodations ensure that individuals with disabilities are not denied equal opportunities in housing and can live comfortably and safely.

The other options would not comply with the legal requirements to provide equal access to housing. For instance, refusing modifications could lead to discrimination claims, while instructing the applicant to find another property would not address the immediate need for suitable housing modifications. Providing alternative housing is also not typically mandated unless it is explicitly necessary to meet the needs of the applicant.