If you replace the floors she should pay for them. As well if you replace the floors there will be a noise issue for the downstairs neighbor. Either way there will be costs incurred even if you move her to the first floor and she still wants the carpet removed. If it were me I would work with her in releasing her from her lease but not without some financial give and take.

Karen has given you the best advice. Also your verification form should ask the doctor if he/she is willing to testify in court that there is a nexus between the resident's disability and the accommodation of a "wooden floor" and not any other type flooring. HUD prohibits asking what the nature of the disability is, but not verifying that there is a nexus between the accommodation and the disability.

It is a violation of the Fair Housing Act for any person to refuse to make a reasonable accommodation in rules, policies, practices, or services, when such accommodations may be necessary to afford a handicapped person equal opportunity to use and enjoy a dwelling unit, including public and common use areas.

Individuals who are disabled may request a reasonable accommodation in housing. A person is considered disabled if they have a physical or mental impairment which substantially limits one or more of their major life activities, if they have a record of having such an impairment, or if they are regarded as having such an impairment.

Severe asthma counts as a disability. It's covered by The Equality Act 2010, which protects people from being discriminated against.

I would replace the flooring and not charge them. Not worth possible legal expenses.

They have cork backing on the plank flooring now that works very well in reducing the noise factor.

Agreed . . . . but flooring is a reasonable MODIFICATION. If site is conventionally-financed, resident pays (if it is determined to be "reasonable"

A reasonable "accommodation" is a change to a rule, policy or procedure (such as allowing ESA/service animals on a non-pet site). A reasonable "modification" is a physical alteration. Accommodations are always paid by the site regardless of financing. Modifications are paid by the site on federally-financed sites, and paid by resident on conventionally-financed sites. See attaached