Fair Housing in Practice

Question 1

What are prohibited activities in relation to protected classes?

Answer 1

• 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.

Question 2

Refusing to work w/ someone

Answer 2

• 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.

Question 3

Differentiate on Terms/Conditions

Answer 3

-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.

Question 4

What is the HUD occupancy rule?

Answer 4

2 adults + 1 infant per bedroom.

Question 5

Discriminatory Advertising

Answer 5

-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.

Question 6

Advertising best practices

Answer 6

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.

Question 7

Is advertising in a foreign language acceptable?

Answer 7

Yes, so long as the advertising contents comply w/ fair housing laws.

Question 8

If an advertisement features pictures of people, they should be what?

Answer 8

Inclusive & representative.

Question 9

Falsifying availability

Answer 9

Most often about a property being unavailable to avoid working with a protected class.

Question 10

How long must records of availability be kept in MA?

Answer 10

3 years after advertising.

Question 11

Blockbusting

Answer 11

• 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.

Question 12

Steering

Answer 12

• 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.

Question 13

Restrictive covenants

Answer 13

-Shelly vs. Kraemer: court case in 1948 make racially restrictive CCRs illegal.

Question 14

CCRs

Answer 14

Covenants, Conditions, & Restrictions

Question 15

Professional organizations

Answer 15

Realtors, MLS, local professional groups, etc. cannot limit membership based on a protected class.

Question 16

Fair Housing Posters

Answer 16

• 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.

Question 17

How long does a person have to file a fair housing law violation complaint?

Answer 17

1 year from the alleged date of discrimination.

Question 18

Can HUD send out testers to test if your compliant w/ Fair Housing laws?

Answer 18

Yes. They try to catch you in the act.

Question 19

What penalties can HUD impose for Fair Housing law violations?

Answer 19

• 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

Question 20

MCAD

Answer 20

• Massachusetts Commission Against Discrimination

- State agency

Question 21

HUD

Answer 21

• Housing & Urban Development

- Federal agency

Question 22

What penalties can MCAD impose for Fair Housing law violations?

Answer 22

• 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.

Question 23

Fair Housing best practices

Answer 23

• 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!

Question 24

What is the difference between clients and customers?

Answer 24

You have fiduciary obligations to your client, not your customer. You do owe everyone honesty.