Under the Federal Fair Housing Law The Seven Protected Classes include:

SUBURBAN WEST REALTORS ASSOCIATION Continued Member Training 2015-2016 Under the Federal Fair Housing Law The Seven Protected Classes include: Color Familial status Handicap National origin Race Religion Sex 1

Timeline 1865 Congress passed the Civil Rights Act Vetoed by President Andrew Johnson 1866 Congress passed the Civil Rights Act (AGAIN) Vetoed by President Andrew Johnson (AGAIN) 2/3 majority in each house overcame the veto. Bill finally become law in 1866 In 1968 (102 years later) America s neighborhoods are still Black OR White. In April 1968 two things happened Martin Luther King was assassinated The Fair Housing Act was passed 1988 (20 years later) Fair Housing Act amended to include person with disabilities & families AND strengthens enforcement provisions 2011 (43 years after the fair housing act of 1968 and the 23 years after the amendments of 1988) This is a real news story 73% of the agents tested Failed!!! 2

Where you live determines where you work and how you get there, your access to healthcare, and the school your child attends. Unfortunately, policies and practices still exist intentionally and unintentionally that keep far too many people out of housing they can afford simply because of who they are. National Fair Housing Alliance talking points on Fair Housing. In September 2013, HUD allocated close to $325,000 for investigation, counseling, testing and education in Chester, Delaware, Lehigh, Montgomery, Northampton and Philadelphia counties. Why REALTORS want to be tested Without testing the issue is he said/did; she said/did Without testing an accusation is made and you have to prove you didn t Testing proves you didn t Testing presents two (or more) opportunities to serve a potential buyer or seller in an identical manner regardless of who they are; where they come from etc. Testing does not waste any more your time than any potential buyer or seller that doesn t turn into a sale. Trying to catch a tester may do you more harm than good. 3

Under the Federal Fair Housing Law The Seven Protected Classes include: Color Familial status Handicap National origin Race Religion Sex Additional State and Local rules Pennsylvania Age (over 40) Philadelphia and Reading Marital status Sexual preference Source of income Know the rules of your local municipalities 4

Exemptions Mrs. Murphy Exemption for dwellings with four or less units and the owner lives in one of the units EXCEPT when a real estate licensee is involved Qualified Senior Housing where 100% of the community is 62 or older, or 80% of the households in the community have at least one resident 55 or older. ONLY exempt from the familial status provision of the act Housing run by religious organizations and private clubs may be able to limit occupancy solely to members BUT cannot discriminate based on race Unrepresented landlords or owners provided the owner does not own or have ownership interest in more than three single family houses at one time Exemptions do not apply IN ADVERTISING: Section 804(c) makes it illegal To make, print, or publish, or cause to be made, printed, or published any notice, statement, or advertisement, with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin, or an intention to make any such preference, limitation, or discrimination Any time a REAL ESTATE LICENSEE is involved in the transaction. To RACIAL DISCRMIINATION there are no exemptipons for racial discrimination. What actions are prohibited Refuse to rent or sell housing Refuse to negotiate for the rental or sale of housing Make housing unavailable or deny that housing is available Set different terms, conditions or privileges for the sale or rental of housing Advertise in a discriminatory way Threaten, coerce or intimidate anyone exercising fair housing rights 5

What actions are prohibited, cont. Persuading owners to sell or rent by telling them that protected groups are moving into the neighborhood (Blockbusting) Deny or make different terms or conditions for a mortgage, home loan, home insurance or other real estate related transaction (Redlining) Section 804 (c) makes it illegal to make, print, publish, or cause to be made, printed or published, any notice or statement with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, national origin, sex, disability, or familial status Applies to all advertising media; print or Internet And verbal statements Applies to exempt properties Mrs. Murphy can choose her tenants but can not advertise or say she only want a certain person. 6

Section 804 (c) makes it illegal to make, print, publish, or cause to be made, printed or published, any notice or statement with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, national origin, sex, disability, or familial status Applies to creators and publishers of advertisement Publishers may rely on representations of the advertisement s creator when conditions may exist for an exemption Example: Ads for housing for older persons; or shared living arrangements Describe the Property Not the Occupants Describe Property Not Occupants Will create liability Will not create liability on their face White Irish No Jews, Christian Home Use of stand alone religious symbols No Wheelchairs No Children or adults only** Female or male preferred/wanted** Mater Bedroom, mother in law suite, family room Rare Find Desirable Neighborhood Apt complex with chapel Kosher meals available Secularized symbols Santa Claus, Easter Bunny, St. Valentine s Day, Merry Christmas and Happy Hannukah Walk in closes; wheel chair ramp, great view, 4 th floor walk up, walk to bus stop Quiet street, Two bedroom, No Bicycles 7

Persons with a disability Definitions (1) individuals with a physical or mental impairment that substantially limits one or more major life activities; (2) individuals who are regarded as having such an impairment; and (3) individuals with a record of such an impairment. Under fair housing laws, people with disabilities can request 1) reasonable accommodations, and/or 2) reasonable modifications In housing occupied or to be occupied by a person with a disability, in order to afford such person full enjoyment of the premises. 8

What is Reasonable? A request is considered reasonable if that request: Does not cause an undue financial and administrative burden to the housing provider Does not cause a basic change in the nature of the housing program available Will not cause harm or damage to others Is technologically possible Reasonable Modification A structural change made to existing premises, occupied or to be occupied by a person with a disability, in order to afford such person full enjoyment of the premises. Must be an identifiable relationship between request and the disability Examples: widening doorways; installing grab bars; lowering cabinets and switches; adding a ramp; altering a walkway; Installation of visual and tactile alert devices Tenant may be required to pay for the cost of the modification Reasonable Accommodation A change, exception or adjustment to a rule, policy, practice or service that may be necessary for a person with a disability to have equal opportunity to use and enjoy a dwelling. Provider may ask for proof of necessity for the accommodation (if not obvious) but not for a history of the disability Some examples for landlords or property managers: Unassigned/unreserved parking spaces Requirement that rent be paid at the office No Pets 9

Service Animals Are not limited to sight related disabilities Are not pets May not charge a fee even if the complex allows pets for a fee. Reasonable Accommodation A change, exception or adjustment to a rule, policy, practice or service that may be necessary for a person with a disability to have equal opportunity to use and enjoy your services: Some examples for Realtors: No pet policies in office; service animals are not pets Requirement that all new or potential clients meet at the office first Large print requests??????? Competing Disabilities Example: Potential buyer needs a service animal a) Seller has a disabling fear of animals b) Seller has a disabling allergy to animals 10

The disability discrimination provisions of the Fair Housing Act do not extend to persons who claim to be disabled solely on the basis of having been adjudicated a juvenile delinquent, having a criminal record, or being a sex offender. Furthermore, the Fair Housing Act does not protect persons who currently use illegal drugs, persons who have been convicted of the manufacture or sale of illegal drugs, or persons with or without disabilities who present a direct threat to the persons or property of others. Familial Status One or more individuals (who have not attained the age of 18 years) living with: (a)a parent or another person having legal custody of such individual or individuals; or (b)the designee of such parent or other person having such custody, with the written permission of such parent or other person. Familial Status Considerations Occupancy Standards General Rule: 2 Persons per bedroom Also consider things like: size of sleeping areas overall size of unit age of child presence of a den or small extra room 11

Familial Status Considerations Lead based paint May affirmatively market the units as having lead based paint. May not prevent family from leasing or purchasing the unit. May not terminate a lease for renovation purposes May require temporary relocation with or w/o incentives for work to be done Avoiding segregating the renovated units Group Homes The Fair Housing Act makes it illegal to To utilize land use policies or actions that treat groups of persons with disabilities less favorably than groups of non-disabled persons. To take action against, or deny a permit, for a home because of the disability of individuals who live or would live there To refuse to make reasonable accommodations in land use and zoning policies and procedures where such accommodations may be necessary to afford persons or groups of persons with disabilities an equal opportunity to use and enjoy housing. Schools Comments about schools have led to lawsuits alleging racial steering Your opinion is not relevant and could expose you to a charge of discrimination You MAY show property based on the CLIENT S REQUEST to be within the boundaries of a certain school district (or place of worship) 12

Expectations of REALTORS (Article 10) REALTORS shall not deny equal professional services to any person for reasons of shall not be party to any plan or agreement to discriminate against a person or persons based on in their employment practices, shall not discriminate against any person or persons based on Race, Color, Religion, Sex, Handicap, Familial Status, National Origin, Sexual Orientation or Gender Identity. Standard of Practice 10-2 When not involved in the sale or lease of a residence, REALTORS may provide demographic information related to a property, transaction or professional assignment to a party if such demographic information is (a) deemed by the REALTOR to be needed to assist with or complete, in a manner consistent with Article 10, a real estate transaction or professional assignment and (b) is obtained or derived from a recognized, reliable, independent, and impartial source. The source of such information and any additions, deletions, modifications, interpretations, or other changes shall be disclosed in reasonable detail. (Adopted 1/05, Renumbered 1/06) 13

But NOT in Pennsylvania! Article 2: Disclosure Realtors shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. A pertinent fact is any material fact that could affect a reasonable purchaser s decision to purchase, or the price that a purchaser might pay Standard of Practice 2-5 Factors deemed non-material by law (e.g. Fair Housing Law) are not pertinent for purposes of Article 2 Article 1: Best Interest Obligations When representing a buyer, seller, landlord, tenant or other client as an agent, Realtors pledge themselves to promote and protect the interests of their client. This obligation to the client is primary, but it does not relieve Realtors of their obligation to treat all partitas honestly. When serving a buyer, seller, landlord tenant or other party in a non-agency capacity, Realtors remain obligated to treat all parties honestly. 14

General Tips for Compliance Treat everyone substantially similar Have and follow written policies, forms and checklists Be willing to make reasonable accommodation and modification Always market to a diverse group Advertise the property not the people who live / might live there When an option is available always let the consumer make the choice Periodically assess your activities Regular training; seek the advice of the experts (HUD, Equal Housing Center of Pennsylvania) Disparate Impact/Discriminatory Effect What is disparate impact? Disparate impact is the idea that some housing practices have the unintended effect of excluding people based on race, family status, or other aspects of who we are. When a policy has a discriminatory effect and it is unjustified or unnecessary, the disparate impact approach says it must be set aside in favor of a policy that is both fair and effective. But if the policy has a solid reason behind it, and no other policy could achieve the same goal with a less discriminatory effect, then the challenged policy stands. Housing Equality Center of Pennsylvania http://www.equalhousing.org/ Pennsylvania Association of REALTORS Resource http://www.suburbanwestrealtors.com/pdf/fairhousingguidelines.pdf National Association of REALTORS Resources http://www.realtor.org/programs/fair-housing-program/resources Pennsylvania Human Relations Commission Resources http://www.portal.state.pa.us/portal/server.pt/community/phrc_home/18970/housin g_discrimination/707780 US Dept. of Housing and Urban Development (HUD) Resources http://portal.hud.gov/hudportal/hud?src=/program_offices/fair_housing_equal_opp 16