The purpose of fair housing laws is to provide fair. housing market for all individuals in accordance with color

5 Fair Housing Chapter Overview A primary goal of the real estate professional is to provide an equal opportunity for housing. This chapter discusses how fair housing laws strive to meet that goal. Important Terminology FAIR HOUSING LAW The purpose of fair housing laws is to provide fair housing opportunity to all people. Real estate licensees must do their part in creating an open age ancestry blockbusting housing market for all individuals in accordance with color the fair housing laws. To a large extent, the burden disability of responsibility for the expediting and maintaining dwelling of fair housing laws is on the licensee. This means familial status that a licensee will often in a position of having lawful source of income to educate the public about the fair housing laws. marital status For example, if a seller mentions that he does not national origin want to sell his home to a certain type of buyer, the race licensee needs to explain to the seller how the fair redlining housing laws work. The seller may not refuse to sell religion his property to someone based upon a protected sex status. If the seller refuses to comply with the fair sexual orientation housing laws, then a prudent agent would refuse to steering take the listing. Fair housing laws are not concerned about the intent of the individual, rather the laws address the actions of the person, i.e. Is the individual treating all parties equally? This does not mean that one must show all properties to all prospects; a prospect may not be financially qualified to purchase every listing. It does mean offering the same level of services to all prospects regardless of a protected status. Once again, fair housing laws are concerned about behavior/actions, not intent. Licensees must scrutinize their practices and be particularly careful not to fall victim to clients or customers who expect to discriminate. Organizations such as HUD and the Department of Workforce Development (DWD), in an effort to determine whether or not a real estate licensee is violating a fair housing law, may send a member of a protected group followed by an individual who is not a member of a protected group to inquire on the status of a piece of property. These individuals are called testers and they are trying to determine if the real estate practitioner is treating all members of the buying/selling public equally. If there is a discrepancy in treatment a court action may be started against the licensee. The courts have held that testing does not constitute entrapment. The fact that a tester is not a bona fide good faith tenant or buyer does not impair their credibility as a witness in a fair housing hearing or in court. 1

REAL ESTATE SALES The two most important steps a licensee can take to avoid any discrimination claim is to treat all people fairly and consistently, and maintain accurate and detailed records of all client and customer interaction. A prudent licensee establishes procedures that ensure they are taking all buyers or sellers prospects through the same routine. For instance, ask all potential buyers the same set of qualifying questions and offer the same level of services. A key to remember is consistency: ask the same questions of everyone. The federal fair housing law applies to dwellings. This includes any building or part of a building designed for occupancy as a residence by one or more families. This includes both properties improved with a structure as well as any vacant lands on which a dwelling will be built. Purely commercial or industrial property is not covered. Federal, state, county, and city fair housing laws may vary with respect to protected classes. The state of Wisconsin has given local levels of government, such as villages, cities, and counties, the right to enact their own fair housing laws so long as they meet or exceed the state fair housing law. Local fair housing laws cannot remove a protected class, but can create more, or stricter, protected classes. Generally, a licensee must comply with the law that offers the most protection to individuals. Typically this occurs at the local level of government. If the local level of government does not have fair housing laws then a licensee needs to comply with the state laws. Wisconsin s 12 Protected Classes 1. Race: A person s membership in a group possessing characteristics and traits transmitted by descent, e.g. Caucasian, African American, Hispanic, etc. 2. Color: A person s skin color. 3. Religion: A person s religious or spiritual beliefs, practices or denominational affiliations. 4. National Origin: The country where a person s ancestors originated or came from. 5. Sex: Gender, male or female. 6. Familial Status: Whether persons are members of families in which one or more children under 18 years old live with a parent, a person who has legal custody, or the designee of the parent or legal custodian. Familial status also protects: a person who is pregnant, a person who is in the process of securing sole or joint legal custody, physical placement, or visitation rights of a minor child, a person whose household includes one or more minor or adult relatives. 7. Disability (Handicap): A physical or mental impairment that substantially limits one or more major life activities, a record of having such an impairment or being regarded as having such an impairment. Examples include: hearing, mobility and visual impairments, chronic alcoholism, chronic mental illness, AIDS, HIV positive, mental retardation, muscular dystrophy, multiple sclerosis, cerebral palsy, and epilepsy. It does not include a person who currently uses illegal drugs/controlled substances. However, under Wisconsin law, a person who currently uses illegal drugs/controlled substances is included if the person is participating in a supervised drug rehabilitation program. A landlord may not refuse to let a handicapped person make reasonable modifications to the dwelling or common use areas, at the expense of the handicapped person, if necessary for such person to use the housing. Where reasonable, the landlord may permit changes only if the handicapped individual agrees to restore the property to its original condition when the premise is vacated. A landlord also may not refuse to make reasonable accommodations in rules, policies, practices or services if necessary for the handicapped person to use the housing. (Example: A building with a no pets policy must allow a visually impaired tenant to keep a guide dog.) 2

Fair Housing - 5 8. Ancestry: A person s racial and ethnic background. Current events provide a good example of ancestry. Afghanistan is the nation of origin; however, there are several groups of people in Afghanistan that identify with their ancestry such as Pashtun, Tajik, Uzbek, and Hazara more so than national origin. 9. Age: Any person at least 18 years of age. 10. Sexual orientation: Having a preference for heterosexuality, homosexuality, or bisexuality, having a history of such a preference or being identified with such a preference. 11. Marital status: A person is single, married, divorced, separated, or widowed. 12. Lawful source of income: The source of a person s income, provided that it is legal. This may include lawful compensation or remuneration in exchange for goods or services provided, profit from financial investments, and any negotiable draft, coupon, or voucher representing monetary value such as food stamps, Social Security, public assistance, unemployment compensation or worker s compensation payments. Fair Housing Law Prohibitions It is unlawful under Wisconsin s Fair Housing Law for any person to discriminate by: 1. Refusing to sell, rent, finance or contract to construct housing or by refusing to negotiate or discuss the terms thereof. 2. Refusing to permit inspection or exacting different or more stringent price, terms or conditions for the sale, lease, financing or rental of housing. 3. Refusing to finance or sell an unimproved residential lot or to construct a home or residence upon such a lot. 4. Advertising in a manner that indicates discrimination by a preference or limitation. 5. For a person in the business of insuring against hazards, by refusing to enter into, or by exacting different terms, conditions or privileges with respect to, a contract of insurance against hazards to a dwelling. This is known as redlining. Decisions on whether or not to issue a loan or a homeowner s insurance policy must be made on the credit worthiness of the individual not the location of the property. 6. In providing the privileges, services or facilities that are available in connection with housing. This pertains to disabled individuals. 7. Falsely representing that housing is unavailable for inspection, rental or sale. This is known as steering. For example, brokers cannot direct members of certain minority groups away from some of their listings in racially unmixed areas. 8. Denying access to, or membership or participation in, a multiple listing service or other real estate service. 9. By coercing, intimidating, threatening or interfering with a person in the exercise or enjoyment of, or on account of his or her having exercised or enjoyed, a right granted or protected under this section, or with a person who has aided or encouraged another person in the exercise or enjoyment of a right granted or protected by the Fair Housing law. In January of 2000, HUD charged a Philadelphia-based Web site operator, Ryan Wilson, with a fair housing violation for making threats against fair housing advocate Bonnie Jouhari, who was white. Threats were made against her in 1998. Wilson s Web site contained Jouhari s picture, labeled her a race traitor and said Traitors like this should beware, for in our day, they will be hung from the neck from the nearest tree or lamp post. The site also contained an animated picture of her office being blown up. Civil penalties of $22,000 plus monetary damages were requested. 3

REAL ESTATE SALES 10. In the making or purchasing of loans or the provision of other financial assistance for purchasing, constructing, improving, repairing or maintaining housing or the making or purchasing of loans or the provision of other financial assistance secured by residential real estate. 11. Blockbusting: No person may induce or attempt to induce a person to sell or rent housing by representations regarding the present or prospective entry into the neighborhood of a person of a particular economic status or a member of a protected class, or by representations to the effect that such present or prospective entry will or may result in any of the following: a.) The lowering of real estate values in the area concerned. b.) Deterioration in the character of the area concerned. c.) An increase in criminal or antisocial behavior in the area concerned. d.) A decline in the quality of the schools or other public facilities serving the area. Permissible Under Fair Housing Law Wisconsin law states that the following are permissible: 1. Discrimination based on age or family status with respect to housing for older per sons. Housing may qualify as housing for older persons only if the owner of the housing maintains records containing written verification that at least 80% of the dwelling units are occupied by at least one person 55 years of age or older, and policies are published and procedures are adhered to that demonstrate an intent by the owner or manager to provide housing for persons 55 years of age or older. 2. Exacting different or more stringent terms or conditions for financing housing based on the age of the individual applicant for financing if the terms or conditions are reasonably related to the individual applicant. 3. The development of housing designed specifically for persons with disabilities in relation to such housing. 4. Refusing to provide housing to an individual whose tenancy would constitute a direct threat to the safety of other tenants or persons employed on the property or whose tenancy would result in substantial physical damage to the property of others, if the risk of direct threat or damage cannot be eliminated or sufficiently reduced through reasonable accommodations. Proving a pattern of behavior of the individual would be a requirement. It was permissible for a landlord to refuse to renew a disabled tenant s lease. The tenant has brain damage suffered in a 1986 accident. The tenant s disability caused him to make crude, rude, threatening, and sexual comments to other tenants. 5. Requiring that a person who seeks to buy or rent housing supply information concerning family, marital, financial and business status but not concerning race, color, disability, sexual orientation, ancestry, national origin or religion. Also, an owner or agent may require that a person who seeks to buy or rent housing for older persons supply information concerning age for the purpose of verifying compliance with that type of housing. 6. Advertising for roommates may indicate the desired gender (sex) of the tenant sought in situations where there are shared living areas or where the advertising is for a dormitory at an educational institution. This exception does not apply if the rental is for separate units in a single or multi-family dwelling. 4

Fair Housing - 5 7. To reference a protected class in an advertisement if advertising is part of an affirmative marketing program designed to attract persons who would not ordinarily be expected to apply for housing. 8. A landlord may refuse to rent to a tenant with a service animal, if the landlord is allergic to animals and the landlord lives on the property. In the case of the rental of owner-occupied housing, if the owner or a member of his or her immediate family occupying the housing possesses and, upon request, presents to the individual a certificate signed by a physician which states that the owner or family member is allergic to the type of animal the individual possesses. Advertising Advertising under the Fair Housing Act means to publish, circulate, issue or display, or cause to be published, circulated, issued or displayed, any communication, notice, advertisement or sign in connection with the sale, financing or rental of housing. Not only is it illegal to discriminate with a print ad, it is also illegal to discriminate by word of mouth. For example, it is considered a violation of the Fair Housing Act to advertise the availability of a rental unit for only certain types of tenants (mature couple, no children) by word of mouth. One of the tests applied when trying to determine whether an ad is in violation of the Fair Housing Act is called the ordinary reader standard. The basic premise of the ordinary reader standard is that if an ordinary reader is not offended when reading the ad, the ad is most likely not a violation of the Fair Housing Act. The following are guidelines issued in a memo by HUD to provide guidance on the procedures for the acceptance and investigation of allegations of discrimination of the Fair Housing Act. Brokers as well as publishers, advertisers and multiple listing services are responsible under the act for making, printing, or publishing an advertisement that violates the Fair Housing Act on its face. 1. Real estate advertisements should not state a discriminatory preference or limitation on account of the protected classes. Use of words describing the housing, the current or potential residents, or the neighbors or neighborhood in racial or ethnic terms (white family home, no Irish) should not be used. 2. Advertisements should not contain an explicit preference, limitation or discrimination on account of religion (no Jews, Christian home). Advertisements that use the legal name of an entity that contains a religious reference (Roselawn Catholic Home), or those which contain a religious symbol (the cross) standing alone may indicate a religious preference. However, if such an advertisement includes a disclaimer (the home does not discriminate on the basis of race, color, religion, national origin, sex, handicap or familial status) it does not violate the act. 3. Advertisements containing descriptions of properties (apartment complex with chapel) or services (kosher meals available) do not on their face state a preference for persons likely to make use of those facilities, and are not violations of the act. 4. The use of secularized terms or symbols relating to religious holidays such as Santa Claus, Easter Bunny or St. Valentine s Day images, or phrases such as Merry Christmas, Happy Easter or the like do not constitute a violation of the act. 5. Real estate advertisements should not contain explicit exclusions, limitations, or other indications of discrimination based on handicap (no wheelchairs). 5

REAL ESTATE SALES 6. Advertisements containing descriptions of properties (great view, fourth-floor walk-up, walk-in closets), services or facilities (jogging trails), or neighborhoods (walk to bus-stop) do not violate the act. Advertisements describing the conduct required of residents (nonsmoking, sober) do not violate the act. Advertisements containing descriptions of accessibility features are lawful (wheelchair ramp). 7. Advertisements may not state an explicit preference, limitation or discrimi nation based on familial status. Advertisements may not contain limitations on the number or ages of children, or state a preference for adults, couples or singles. 8. Advertisements describing the properties (two bedroom, cozy, family room) services and facilities (no bicycles allowed) or neighborhoods (quiet streets) are not facially discriminatory and do not violate the act. Use of Demographic Data Relating to Protected Classes Data on the racial composition of neighborhoods as well as other types of information about the people that make up an area are readily available on the Internet as well as other programs. The question that many real estate practitioners face today is what to do with that information. It is very clear that an agent may not use this information to steer a buyer into or away from a particular area. The question that usually comes next is, Is it okay for the buyers to steer themselves? The answer is for the most part, yes. The buyer may have demographic information they may use to identify areas in which they wish to live. Upon learning the areas that interest the buyer, the sales associate should show the buyer any property within that area which the buyer is qualified to purchase. Another frequently asked question regarding demographic information is, May the sales associate possess demographic information and may they distribute it to a buyer? The sales associate may possess the information; it is just numbers after all. It is what the sales associate does with the information that may lead to a violation of the Fair Housing Act. The sales associate should not show property based on demographic information nor should they distribute the information to a buyer. If a buyer however, wants to do some research, they may use a computer at the sales associate s office to access Web sites that contain demographic information. To demonstrate how this works, a buyer expresses he wants to live in a racially diverse neighborhood. A salesperson is prevented from showing the buyer racial statistics for a community. However, a buyer could be referred to other resources to obtain the information. After the buyer obtains the necessary information, the buyer would be able to identify areas in which they would like to live. The buyer can then tell the real estate salesperson the neighborhoods where they want to obtain housing. The licensee in turn, can show available properties within those neighborhoods. THE AMERICANS WITH DISABILITIES ACT (ADA) Sometimes real estate agents are uncertain about how to work with persons with disabilities or families including a person with disabilities. They are afraid to ask questions related to a person s disability for fear of offending the person or violating the Fair Housing law. The Americans with Disabilities Act (ADA) requires places of public accommodation to provide equal access and services to persons with disabilities. A real estate office is a place of public accommodation. This means that real estate offices must remove, where reasonable, architectural and communication barriers and provide auxiliary services. Auxiliary aids and services are required by the ADA to ensure effective communication with individuals with hearing or vision impairments. The ADA does not require the provision of any auxiliary aid that results in an undue burden or in a fundamental alteration in the nature of the goods or services provided by a broker. Asking the questions necessary 6

Fair Housing - 5 to determine what auxiliary aids and services are needed by a person with disabilities does not mean that the person with disabilities is being treated differently or being discriminated against. Instead it is setting up a situation where all real estate services can be furnished effectively and on an equal basis. A real estate licensee working with a person with disabilities may ask the person or family to identify any assistance that may be required in order for the person to avail him or herself of the real estate services provided. Auxiliary aids must be provided to individuals with disabilities who have physical or mental impairments, such as vision, hearing or speech impairments that substantially limit the ability to communicate. Auxiliary aids and services include a wide range of services and devices that promote effective communication. Examples of auxiliary aids and services for individuals who are deaf or hard of hearing include qualified interpreters, note takers, computer-aided transcription services, written materials, telephone handset amplifiers, assistive listening systems, telephones compatible with hearing aids, closed caption decoders, open and closed captioning, telecommunications devices for deaf persons (TDDs), videotext displays and exchange of written notes. Qualified readers, taped texts, audio recordings, Braille materials, large-print materials, a magnifying glass, and assistance in locating items may aid individuals who are blind or who have vision impairments. Persons with speech impairments may need TDDs, computer terminals, speech synthesizers or communication boards. Some of these devices are expensive, require training or technical expertise, and are not readily available. Fortunately, the ADA does place limits on the obligation of public accommodations to provide auxiliary devices and services. A public accommodation is not required to provide any auxiliary aid or service that would fundamentally alter the nature of the goods or services offered or that would result in an undue burden. However, the fact that providing a particular auxiliary aid or service results in a fundamental alteration or undue burden does not necessarily relieve a public accommodation from its obligation to ensure effective communication. The public accommodation must still provide an alternative auxiliary aid or service that would not result in an undue burden or fundamental alteration but that would ensure effective communication to the maximum extent possible, if one were available. The ADA also requires readily achievable barrier removal measures for real estate offices, including home offices. This could include installing ramps, rearranging tables and chairs, repositioning telephones, adding raised markers on elevator control buttons, widening doorways, making bathrooms accessible, etc. Real estate brokers and agents should consult with the individuals with disabilities who are visiting the office to determine any type of aid needed to ensure effective access for the customer. Pay particular attention to ensuring that there is an accessible entrance and pathway to the meeting room (ramp, wide doors and hallways and elevator if not on the first floor). In rental situations, the ADA places the legal obligation to remove barriers or provide auxiliary aids and services on both the owner of a property as well as the tenant. The landlord and tenant may decide by lease who actually makes the changes and provide the aids and services, but both remain legally responsible. The ADA public accommodations provisions permit an individual to allege discrimination based on a reasonable belief that discrimination is about to occur. This provision, for example, allows a person who uses a wheelchair to challenge the planned construction of a new place of public accommodation, such as a shopping mall, that would not be accessible to individuals who use wheelchairs. The resolution of such challenges prior to the construction of an inaccessible facility would enable any necessary remedial measures to be incorporated in the building at the planning stage, when such changes would be relatively inexpensive. For more resources for working with customers with disabilities visit: www.wra.org/resources/resource_pages/disabilities_resources.htm. 7

REAL ESTATE SALES HANDLING COMPLAINTS The Office of Fair Housing and Equal Opportunity (FHEO) investigates complaints filed with HUD. HUD will try to reach an agreement with the person the complaint is against (the respondent). Any conciliation agreement agreed to by the parties must protect both the parties and the public interest. If an agreement is signed, HUD does not take any further action. However, if HUD has reasonable cause to believe that a conciliation agreement is breached, HUD will recommend the attorney general file suit. If the complaint is not successfully conciliated, the FHEO determines whether reasonable cause exists to believe that a discriminatory housing practice has occurred. Where reasonable cause is found, the parties to the complaint are notified by HUD s issuance of a determination, as well as a charge of discrimi nation, and a hearing is scheduled before a HUD administrative law judge. Either party complainant or respondent may cause the HUDscheduled adminis trative proceeding to be terminated by electing instead to have the matter litigated in federal court. Whenever a party has so elected, the Department of Justice takes over HUD s role as counsel seeking resolution of the charge on behalf of aggrieved persons, and the matter proceeds as a civil action. If the complainant wishes, he may file suit, at his expense, in federal district court or state court within one year of an alleged violation. If the complainant cannot afford an attorney, the court may appoint one for him. A court may award actual and punitive damages and attorney s fees and costs. Complaints under Wisconsin s laws may be handled the following way: 1. Complaints must be in writing, state the facts, and be filed within one year of the alleged discriminatory act taking place. 2. At any time after a complaint is filed alleging discrimination, the Department of Workforce Development (DWD) may file a petition seeking a temporary injunction or restraining order against the respondent. 3. The DWD shall commence proceedings with respect to a complaint before the end of the 30th day after receipt of the complaint. If the DWD is unable to complete the investigation within 100 days, it shall notify the complainant and respondent in writing of the reasons. 4. The court may allow a prevailing complainant reasonable attorney fees and costs. The Equal Rights Division of DWD may also refer a fair housing complaint against a person holding a Wisconsin license to the DRL for enforcement action. In those instances the person may also be subject to revocation, suspension, or limitation of his license, along with other remedies including education, reprimand and forfeiture. ESTABLISHING OFFICE PROCEDURES REGARDING FAIR HOUSING LAWS In order to ensure compliance with fair housing laws, office procedures should be created to address the following: 1. Listings, as well as methods for handling situations that commonly arise with sellers. 2. The use of lists of properties for sale or rent and ways to ensure that accurate and uniform information is provided to the public. Licensees need to avoid a situation where a tester speaks to one agent who says that a property is sold and then speaks to another agent who represents that the property is still available for sale. 8

Fair Housing - 5 3. Qualifying procedures to ensure uniform treatment of prospective purchasers and tenants. A company can create uniform prospect cards so that salespeople are asking all prospective buyers and sellers the same questions. 4. How to handle customer questions at showings or open houses. For example: The buyers ask if the property is located in a culturally diverse neighborhood. A proper response would be that the company does not keep those types of statistics but that the buyers could possibly research the information for themselves at www.hud.gov. 5. Marketing and advertising guidelines. 6. Procedures for handling compromising situations and suspected discrimination. 7. Record-keeping procedures. 9

CHAPTER 66 GENERAL MUNICIPALITY LAW * Only the portions of chapter 66 relevant to the state license exam are provided. 66.1011 Local equal opportunities. (1) DECLARATION OF POLICY. The right of all persons to have equal opportunities for housing regardless of their sex, race, color, physical condition, disability as defined in s. 106.50 (1m) (g), sexual orientation as defined in s. 111.32 (13m), religion, national origin, marital status, family status as defined in s. 106.50 (1m) (k), lawful source of income, age or ancestry is a matter both of statewide concern under ss. 101.132 and 106.50 and also of local interest under this section and s. 66.0125. The enactment of ss. 101.132 and 106.50 by the legislature does not preempt the subject matter of equal opportunities in housing from consideration by political subdivisions, and does not exempt political subdivisions from their duty, nor deprive them of their right, to enact ordinances which prohibit discrimination in any type of housing solely on the basis of an individual being a member of a protected class. (1m) DEFINITIONS. In this section: (a) Aggrieved person has the meaning given in s. 106.50(1m) (b). (b) Complainant has the meaning given in s. 106.50 (1m) (c). (c) Discriminate has the meaning given in s. 106.50 (1m) (h). (d) Member of a protected class has the meaning given in s. 106.50 (1m) (nm). (e) Political subdivision means a city, village, town or county. (2) ANTIDISCRIMINATION HOUSING ORDINANCES. Political subdivisions may enact ordinances prohibiting discrimination in housing within their respective boundaries solely on the basis of an individual being a member of a protected class. An ordinance may be similar to ss. 101.132 and 106.50 or may be more inclusive in its terms or in respect to the different types of housing subject to its provisions. An ordinance establishing a forfeiture as a penalty for violation may not be for an amount that is less than the statutory forfeitures under s. 106.50 (6) (h). An ordinance may permit a complainant, aggrieved person or respondent to elect to remove the action to circuit court after a finding has been made that there is reasonable cause to believe that a violation of the ordinance has occurred. An ordinance may authorize the political subdivision, at any time after a complaint has been filed alleging an ordinance violation, to file a complaint in circuit court seeking a temporary injunction or restraining order pending final disposition of the complaint. (3) CONTINGENCY RESTRICTION. No political subdivision may enact an ordinance under sub. (2) that contains a provision making its effective date or the operation of any of its provisions contingent on the enactment of an ordinance on the same or similar subject matter by one or more other political subdivisions. History: 1971 c. 185 s. 7; 1975 c. 94, 275, 422; 1977 c. 418 s. 929 (55); 1981 c. 112; 1981 c. 391 s. 210; 1985 a. 29; 1989 a. 47; 1991 a. 295; 1995 a. 27; 1997 a. 237; 1999 a. 82; 1999 a. 150 s. 447; Stats. 1999 s. 66.1011; 1999 a. 186 ss. 61, 62. NOTE: 1991 Wis. Act 295, which affected this section, contains extensive legislative council notes. An ordinance provision banning discrimination against cohabitants was outside the authority of sub. (2) and was invalid. County of Dane v. Norman, 174 Wis. 2d 683, 497 N.W.2d 714 (1993). Chapter 5 Appendix - Page 1

CHAPTER 106 APPRENTICE, EMPLOYMENT AND EQUAL RIGHTS PROGRAMS * Only the portions of chapter 106 relevant to the state license exam are provided. 106.50 Open housing. (1) INTENT. It is the intent of this section to render unlawful discrimination in housing. It is the declared policy of this state that all persons shall have an equal opportunity for housing regardless of sex, race, color, sexual orientation, orientation, disability, religion, national origin, marital status, family status, lawful source of income, age or ancestry and it is the duty of the political subdivisions to assist in the orderly prevention or removal of all discrimination in housing through the powers granted under ss. 66.0125 and 66.1011. The legislature hereby extends the state law governing equal housing opportunities to cover single family residences which are owner occupied. The legislature finds that the sale and rental of single family residences constitute a significant portion of the housing business in this state and should be regulated. This section shall be deemed an exercise of the police powers of the state for the protection of the welfare, health, peace, dignity and human rights of the people of this state. (1m) DEFINITIONS. In this section: (ad) Advertise means to publish, circulate, issue or display, or cause to be published, circulated, issued or displayed, any communication, notice, advertisement or sign in connection with the sale, financing or rental of housing. (am) Age, in reference to a member of a protected class, means at least 18 years of age. (b) Aggrieved person means a person who claims to have been injured by discrimination in housing or believes that he or she will be injured by discrimination in housing that is about to occur. (c) Complainant means a person who files a complaint alleging discrimination in housing. (d) Conciliation means the attempted resolution of issues raised by a complaint or by the investigation of the complaint, through informal negotiations involving the aggrieved person, the complainant, the respondent and the department. (e) Condominium has the meaning given in s. 703.02 (4). (f) Condominium association means an association, as defined in s. 703.02 (1m). (g) Disability means a physical or mental impairment that substantially limits one or more major life activities, a record of having such an impairment or being regarded as having such an impairment. Disability does not include the current illegal use of a controlled substance, as defined in s. 961.01 (4), or a controlled substance analog, as defined in s. 961.01 (4m), unless the individual is participating in a supervised drug rehabilitation program. (h) Discriminate means to segregate, separate, exclude or treat a person or class of persons unequally in a manner described in sub. (2), (2m) or (2r) because of sex, race, color, sexual orientation, disability, religion, national origin, marital status, family status, lawful source of income, age or ancestry. (i) Dwelling unit means a structure or that part of a structure that is used or intended to be used as a home, residence or sleeping place by one person or by 2 or more persons who are maintaining a common household, to the exclusion of all others. (j) Family includes one natural person. (k) Family status means any of the following conditions that apply to a person seeking to rent or purchase housing or to a member or prospective member of the person s household regardless of the person s marital status: 1. A person is pregnant. 2. A person is in the process of securing sole or joint legal custody, periods of physical placement or visitation rights of a minor child. 3. A person s household includes one or more minor or adult relatives. 4. A person s household includes one or more adults or minor children in his or her legal custody or physical placement or with whom he or she has visitation rights. 5. A person s household includes one or more adults or minor children placed in his or her care under a court order, under a guardianship or with the written permission of a parent or other person having legal custody of the adult or minor child. (km) Hardship condition means a situation under which a tenant in housing for older persons has legal custody or physical placement of a minor child or a minor child is placed in the tenant s care under a court order, under a guardianship or with the written permission of a parent or other person having legal custody of the minor child. (L) Housing means any improved property, or any portion thereof, including a mobile home as defined in s. 66.0435 (1) (d) or condominium, that is used or occupied, or is intended, arranged or designed to be used or occupied, as a home or residence. Housing includes any vacant land that is offered for sale or rent for the construction or location thereon of any building, structure or portion thereof that is used or occupied, or is intended, arranged or designed to be used or occupied, as a home or residence. NOTE: The cross reference to s. 66.0435 (1) (d) was changed pursuant to 1999 Wis. Act 150, section 672, which incorrectly indicated that the change was to be made to par. (h). Corrective legislation is pending. (m) Housing for older persons means any of the following: 1. Housing provided under any state or federal program that the secretary determines is specifically designed and operated to assist elderly persons, as defined in the state or federal program. Chapter 5 Appendix - Page 2

CHAPTER 106 APPRENTICE, EMPLOYMENT AND EQUAL RIGHTS PROGRAMS 2. Housing solely intended for, and solely occupied by, persons 62 years of age or older. 3. Housing primarily intended and primarily operated for occupancy by at least one person 55 years of age or older per dwelling unit. (mm) Interested person means an adult relative or friend of a member of a protected class, or an official or representative of a private agency, corporation or association concerned with the welfare of a member of a protected class. (nm) Member of a protected class means a group of natural persons, or a natural person, who may be categorized based on one or more of the following characteristics: sex, race, color, disability, sexual orientation as defined in s. 111.32 (13m), religion, national origin, marital status, family status, lawful source of income, age or ancestry. (om) Political subdivision means a city, village, town or county. (q) Relative means a parent, grandparent, greatgrandparent, stepparent, step grandparent, brother, sister, child, stepchild, grandchild, step grandchild, greatgrandchild, first cousin, 2 nd cousin, nephew, niece, uncle, aunt, stepbrother, stepsister, half brother or half sister or any other person related by blood, marriage or adoption. (r) Rent means to lease, to sublease, to let or to otherwise grant for a consideration the right of a tenant to occupy housing not owned by the tenant. (s) Respondent means the person accused in a complaint or amended complaint of discrimination in housing and any other person identified in the course of an investigation as allegedly having discriminated in housing. (t) Sexual orientation has the meaning given in s. 111.32 (13m). (1s) DEPARTMENT TO ADMINISTER. This section shall be administered by the department through its division of equal rights. The department may promulgate such rules as are necessary to carry out this section. No rule may prohibit the processing of any class action complaint or the ordering of any class based remedy, or may provide that complaints may be consolidated for administrative convenience only. (2) DISCRIMINATION PROHIBITED. It is unlawful for any person to discriminate: (a) By refusing to sell, rent, finance or contract to construct housing or by refusing to negotiate or discuss the terms thereof. (b) By refusing to permit inspection or exacting different or more stringent price, terms or conditions for the sale, lease, financing or rental of housing. (c) By refusing to finance or sell an unimproved residential lot or to construct a home or residence upon such lot. (d) By advertising in a manner that indicates discrimination by a preference or limitation. (e) For a person in the business of insuring against hazards, by refusing to enter into, or by exacting different terms, conditions or privileges with respect to, a contract of insurance against hazards to a dwelling. (f) By refusing to renew a lease, causing the eviction of a tenant from rental housing or engaging in the harassment of a tenant. (g) In providing the privileges, services or facilities that are available in connection with housing. (h) By falsely representing that housing is unavailable for inspection, rental or sale. (i) By denying access to, or membership or participation in, a multiple listing service or other real estate service. (j) By coercing, intimidating, threatening or interfering with a person in the exercise or enjoyment of, or on account of his or her having exercised or enjoyed, a right granted or protected under this section, or with a person who has aided or encouraged another person in the exercise or enjoyment of a right granted or protected under this section. (k) In making available any of the following transactions, or in the terms or conditions of such transactions for a person whose business includes engaging in residential real estate related transactions: 1. The making or purchasing of loans or the provision of other financial assistance for purchasing, constructing, improving, repairing or maintaining housing or the making or purchasing of loans or the provision of other financial assistance secured by residential real estate. 2. Selling, brokering or appraising residential real property. (L) By otherwise making unavailable or denying housing. (2m) REPRESENTATIONS DESIGNED TO INDUCE PANIC SALES. No person may induce or attempt to induce a person to sell or rent housing by representations regarding the present or prospective entry into the neighborhood of a person of a particular economic status or a member of a protected class, or by representations to the effect that such present or prospective entry will or may result in any of the following: (a) The lowering of real estate values in the area concerned. (b) A deterioration in the character of the area concerned. (c) An increase in criminal or antisocial behavior in the area concerned. (d) A decline in the quality of the schools or other public facilities serving the area. Chapter 5 Appendix - Page 3

CHAPTER 106 APPRENTICE, EMPLOYMENT AND EQUAL RIGHTS PROGRAMS (2r) DISCRIMINATION AGAINST PERSONS WITH DISABILITIES PROHIBITED. (b) Types of discrimination prohibited. In addition to discrimination prohibited under subs. (2) and (2m), no person may do any of the following: 1. Segregate, separate, exclude or treat unequally in the sale or rental of, or otherwise make unavailable or deny, housing to a buyer or renter because of a disability of that buyer or renter, a disability of a person residing in or intending to reside in that housing after it is sold, rented or made available or a disability of a person associated with that buyer or renter. 2. Segregate, separate, exclude or treat unequally a person in the terms, conditions or privileges of sale or rental of housing, or in the provision of services or facilities in connection with such housing, because of a disability of that person, a disability of a person residing in or intending to reside in that housing after it is sold, rented or made available or a disability of a person associated with that person. 3. Refuse to permit, at the expense of a person with a disability, reasonable modifications of existing housing that is occupied, or is to be occupied, by such a person if the modifications may be necessary to afford the person full enjoyment of the housing, except that in the case of rental housing the landlord may, where it is reasonable to do so, condition permission for a modification on the tenant s agreement to restore the interior of the housing to the condition that existed before the modification, other than reasonable wear and tear. The landlord may not increase any customarily required security deposit. Where it is necessary to ensure that funds will be available to pay for the restorations at the end of the tenancy, the landlord may negotiate as part of a restoration agreement a requirement that the tenant pay into an interest bearing escrow account, over a reasonable period, a reasonable amount of money not to exceed the cost of the restorations. The interest in any such account shall accrue to the benefit of the tenant. If escrowed funds are not used by the landlord for restorations, they shall be returned to the tenant. 4. Refuse to make reasonable accommodations in rules, policies, practices or services that are associated with the housing, when such accommodations may be necessary to afford the person equal opportunity to use and enjoy housing, unless the accommodation would impose an undue hardship on the owner of the housing. (bm) Animals assisting persons with disabilities. 1. If an individual s vision, hearing or mobility is impaired, it is discrimination for a person to refuse to rent or sell housing to the individual, cause the eviction of the individual from housing, require extra compensation from an individual as a condition of continued residence in housing or engage in the harassment of the individual because he or she keeps an animal that is specially trained to lead or assist the individual with impaired vision, hearing or mobility if all of the following apply: a. Upon request, the individual shows to the lessor, seller or representative of the condominium association credentials issued by a school recognized by the department as accredited to train animals for individuals with impaired vision, hearing or mobility. b. The individual accepts liability for sanitation with respect to, and damage to the premises caused by, the animal. 2. Subdivision 1. does not apply in the case of the rental of owner occupied housing if the owner or a member of his or her immediate family occupying the housing possesses and, upon request, presents to the individual a certificate signed by a physician which states that the owner or family member is allergic to the type of animal the individual possesses. (c) Design and construction of covered multifamily housing. In addition to discrimination prohibited under pars. (b) and (bm) and subs. (2) and (2m), no person may design or construct covered multifamily housing, as defined in s. 101.132 (1) (d), unless it meets the standards specified in s. 101.132 (2) (a) 1. to 4. In addition, no person may remodel, as defined in s. 101.132 (1) (h), housing with 3 or more dwelling units unless the remodeled housing meets the standards specified in s. 101.132 (2) (a) 1. to 4. as required under s. 101.132 (2) (b) 1., 2. or 3., whichever is applicable. (5m) EXEMPTIONS AND EXCLUSIONS. (a) 1. Nothing in this section prohibits discrimination based on age or family status with respect to housing for older persons. 1e. Under this paragraph, housing under sub. (1m) (m) 3. may qualify as housing for older persons only if the owner of the housing maintains records containing written verification that all of the following factors apply to the housing: b. At least 80% of the dwelling units under sub. (1m) (m) 3. are occupied by at least one person 55 years of age or older. c. Policies are published and procedures are adhered to that demonstrate an intent by the owner or manager to provide housing under sub. (1m) (m) 3. for persons 55 years of age or older. The owner or manager may document compliance with this subd. 1e. c. by maintaining records containing written verification of the ages of the occupants of the housing. 1m. No person may discriminate by refusing to Chapter 5 Appendix - Page 4

CHAPTER 106 APPRENTICE, EMPLOYMENT AND EQUAL RIGHTS PROGRAMS continue renting to a person living in housing for older persons under sub. (1m) (m) 3. who is subject to a hardship condition. 2. Under this paragraph, housing may qualify as housing for older persons with respect to persons first occupying the housing on or after September 1, 1992, regardless of whether a person who had not attained the age of 62 resided in the housing on that date or regardless of whether one or more dwelling units were unoccupied on that date, if the persons who first occupy the housing on or after that date have attained the age of 62. (b) Nothing in this section shall prohibit a person from exacting different or more stringent terms or conditions for financing housing based on the age of the individual applicant for financing if the terms or conditions are reasonably related to the individual applicant. (c) Nothing in this section shall prohibit the development of housing designed specifically for persons with disabilities and preference in favor of persons with disabilities in relation to such housing. (d) Nothing in this section requires that housing be made available to an individual whose tenancy would constitute a direct threat to the safety of other tenants or persons employed on the property or whose tenancy would result in substantial physical damage to the property of others, if the risk of direct threat or damage cannot be eliminated or sufficiently reduced through reasonable accommodations. A claim that an individual s tenancy poses a direct threat or a substantial risk of harm or damage must be evidenced by behavior by the individual which caused harm or damage, which directly threatened harm or damage or which caused a reasonable fear of harm or damage to other tenants, persons employed on the property or the property. No claim that an individual s tenancy would constitute a direct threat to the safety of other persons or would result in substantial damage to property may be based on the fact that a tenant has been or may be the victim of domestic abuse, as defined in s. 813.12 (1) (a). (e) It is not discrimination based on family status to comply with any reasonable federal, state or local government restrictions relating to the maximum number of occupants permitted to occupy a dwelling unit. (em) 1. Subject to subd. 2., nothing in this section applies to a decision by an individual as to the person with whom he or she will, or continues to, share a dwelling unit, as defined in s. 101.71(2) except that dwelling unit does not include any residence occupied by more than 5 persons. 2. Any advertisement or written notice published, posted or mailed in connection with the rental or lease of a dwelling unit under subd. 1. may not violate sub. (2) (d), 42 USC 3604 (c), or any rules or regulations promulgated under this section or 42 USC 3601 to 3619, except that such an advertisement or written notice may be for a person of the same sex as the individual who seeks a person to share the dwelling unit for which the advertisement or written notice is placed. (f) 1. Nothing in this section prohibits an owner or agent from requiring that a person who seeks to buy or rent housing supply information concerning family status and marital, financial and business status but not concerning race, color, physical condition, disability, sexual orientation, ancestry, national origin, religion, creed or, subject to subd. 2., age. 2. Notwithstanding subd. 1., an owner or agent may require that a person who seeks to buy or rent housing under sub. (1m) (m) 3. supply information concerning his or her age for the purpose of verifying compliance with par. (a) 1e. b. (g) A person may not be held personally liable for monetary damages for a violation of sub. (2), (2m) or (2r) if the person reasonably relied, in good faith, on the application of the exemption under this subsection relating to housing for older persons. For purposes of this paragraph, a person may show reasonable reliance, in good faith, on the application of the exemption under this subsection relating to housing for older persons only if the person shows all of the following: 1. That he or she has no actual knowledge that the housing is not or will not be eligible for the exemption. 2. That the owner of the housing has stated formally, in writing, that the housing complies with the requirements for the exemption. (6) FAIR HOUSING ADMINISTRATIVE ENFORCEMENT. (a) Complaints. 1. The department may receive and investigate a complaint charging a violation of sub. (2), (2m) or (2r) if the complaint is filed with the department not later than one year after the alleged discrimination occurred or terminated. 2. The complaint shall include a written statement of the essential facts constituting the discrimination that is charged, and shall be signed by the complainant. 3. The complaint may be filed by an aggrieved person, by an interested person, by the department of workforce development under par. (b) or, if the complaint charges a violation of sub. (2r) (c), by Chapter 5 Appendix - Page 5