Fair Housing in Practice Flashcards
What are prohibited activities in relation to protected classes?
- Refusing to work with someone.
- Differentiate on terms/conditions.
- Advertise in a discriminatory way.
- Falsify availability.
- Engaging in “blockbusting”.
- “Steering” someone away from/towards a specific neighborhood.
- Use covenants/restrictions to limit occupancy.
- Prohibit someone from joining professional real estate organizations.
Refusing to work w/ someone
- Agents cannot refuse someone services based on a protected class.
- Agents cannot select/deny clients based on a protected class.
- Agents cannot select/deny tenants based on a protected class.
- Sellers cannot select/deny buyers on a protected class.
Differentiate on Terms/Conditions
-Cannot impose different/additional requirements on someone based on a protected class.
Example: Charging someone extra rent for children.
-Local sanitary codes & fire codes apply.
-HUD occupancy rule.
What is the HUD occupancy rule?
2 adults + 1 infant per bedroom.
Discriminatory Advertising
-Illegal to specify preferences/limitations based on a protected class.
Example: “Empty Nesters” (familial status) “immigrant community (national origin)
-Illegal to target/exclude protected classes.
-Covers all forms of advertising. Includes MLS postings, online listings, social media, websites, etc.
Advertising best practices
Best practices from the National Fair Housing Alliance:
-Focus on property, not people.
-Do not state preference for or exclude certain groups of people.
-Include Fair Housing logo &/or equal opportunity housing tagline.
-Do not exclude protected classes using ad targeting.
Always be truthful about price, features, etc. of property being advertised.
Is advertising in a foreign language acceptable?
Yes, so long as the advertising contents comply w/ fair housing laws.
If an advertisement features pictures of people, they should be what?
Inclusive & representative.
Falsifying availability
Most often about a property being unavailable to avoid working with a protected class.
How long must records of availability be kept in MA?
3 years after advertising.
Blockbusting
- The solicitation of property for sale or lease based on the alleged/perspective entry into a neighborhood by a protected class.
- Creates panic selling or panic peddling.
- Avoid discussing demographics in relation to property values.
Steering
- Directing someone towards or away from neighborhoods based on a protected class.
- Do not make assumptions about where your clients want to live.
- Do not limit the listings/areas you share w/ your clients if they meet your client’s specifications.
- Avoid opining about neighborhood’s safety.
- Avoid opining about school districts.
Restrictive covenants
-Shelly vs. Kraemer: court case in 1948 make racially restrictive CCRs illegal.
CCRs
Covenants, Conditions, & Restrictions
Professional organizations
Realtors, MLS, local professional groups, etc. cannot limit membership based on a protected class.
Fair Housing Posters
- A HUD Equal Housing Opportunity poster must be posted in every real estate office.
- An MCAD Fair Housing Law poster must be posted in every real estate office.
- Failure to have these posted is “prima facie” evidence of discrimination.
How long does a person have to file a fair housing law violation complaint?
1 year from the alleged date of discrimination.
Can HUD send out testers to test if your compliant w/ Fair Housing laws?
Yes. They try to catch you in the act.
What penalties can HUD impose for Fair Housing law violations?
- 1st offense: up to $16,000
- 2nd offense: up to $37,500
- 3rd offence: up to $65,000
- Additional civil penalties between $50,000-$100,000
MCAD
- Massachusetts Commission Against Discrimination
- State agency
HUD
- Housing & Urban Development
- Federal agency
What penalties can MCAD impose for Fair Housing law violations?
- 1st offense: minimum of 60 day license suspension.
- 2nd offense: minimum of 90 day license suspension.
- These suspensions are in addition to HUD’s imposed penalties.
Fair Housing best practices
- Treat all of your clients & customers the same.
- Create checklists & standards of service for everyone to avoid discrimination made through implicit basis.
- Add the HUD Equal Opportunity Housing logo to your email signature (all advertisements).
- Talk about the property, not the people.
- Do NOT make assumptions.
- Always follow the law!
What is the difference between clients and customers?
You have fiduciary obligations to your client, not your customer. You do owe everyone honesty.
