14.41 Fair Housing Practices (Definitions)

Redlining

Refusing to make mortgage loans or issue insurance policies in specific geographical areas for reasons other than the qualification of the applicant is known as redlining.

Steering

Steering is the practice of discouraging buyers from considering certain neighborhoods or channeling buyers to particular neighborhoods based upon assumed buyer preferences regarding racial, religious, or national origin composition of a neighborhood.

Real estate agents must show available properties to a prospective purchaser in all neighborhoods where the housing price and type fits the purchaser’s parameters. The purchaser is the only one who can make the decision about a neighborhood.

Blockbusting

Blockbusting means that an agent encourages people to either sell or rent their houses by claiming that the character of a neighborhood is changing due to the entry of a protected class.

Real estate licensees, whether performing the actual blockbusting and making the subsequent profit, or simply assisting in the Blockbusting process by encouraging sellers to leave the area, are violating the Fair Housing laws.

Racial Tipping

Racial tipping means supplying truthful and factual information about the racial composition of a neighborhood in response to a buyer’s stated desire to live in a neighborhood of a particular racial composition. Racial tipping is not a prohibited activity.

Advertising

Licensee is advised as to which are acceptable words and phrases and which are not permitted in advertising. The following is only a partial list:

Acceptable Words and Phrases

• Close to downtown

• Den

• Family room

• Near (such as "near UCLA")

• No smoking/drinking

• Number of bedrooms

• One apartment

• Play area

• Privacy

• Private setting

• School district

• Schools

• Secluded

• Security provided

• Senior discount

• Seniors (if certified by HUD as senior housing)

• Square Feet

• Townhouse

• Tradition (style of home)

• View

• Walking distance to...

**Unacceptable Words and Phrases
**

• Adult (adult building, adult park, etc.)

• Adults only

• Bachelor pad

• Black

• Blind

• Board approval

• Catholic church

• Christian

• Couple (couples preferred, couples only, etc)

• Crippled

• Deaf

• Drinker(s)

• Ethnic landmarks

• Executive

• Exclusive

• Family (Great for families)

• Female

• Gay

• Gentleman’s Farm

• Grandma’s house

• Handicap limitations (not suitable for)

• Integrated

• Jewish

• Male

• Man

• Marital Status

• Membership approval

• Mentally handicapped

• Mentally ill

• Mentally retarded

• Mormon Temple

• Muslim

• Name of School

• Nationality (Oriental, Hispanic, etc)

• No children

• No play area

• Number of people

• Older person, senior citizen

• One child

• One person

• Oriental

• Physically fit person (idea for or limited to)

• Private

• Race

• Religious landmark

• Religious name

• Restricted

• Retired

• Sex (except in advertising for roommates)

• Single

• Single person

• Smoker(s)

• Student

• Traditional (settings)

• Two people

• White

• Words descriptive of dwelling landlord or tenants

Questionable Words and Phrases

• Female Roommate

• 55 or older (must meet HUD guidelines)

Fair Housing Practices

• Male Roommate

• Neighborhood

• Older persons

• Senior (must meet HUD guidelines)

Selective Use of Photographs or Illustrations of People

Selective use of models, photographs, illustrations of people in ad content can also be perceived as discriminating against a protected class. For example, a real estate brokerage represents a builder who has housing projects located throughout a metro area. One of the projects is in a predominantly minority community, the other is in a predominantly white community. In the minority community, African-American models are used in advertising. In the white community, Anglo-American models are used. Advertising in that manner would be viewed as indicating a preference for buyers based upon race and would be considered discriminatory.

Fair Housing Law Violation Consequences

One helpful practice that all licensees should adopt is to keep good records to demonstrate that fair housing laws were complied with in dealings with a customer or client. These records are the best defense against any potential fair housing violation claim.

Types of documentation that should be maintained for all clients and customers in your Google Drive

• Name, address, and telephone number of prospect

• Stated housing requirements, including price range

• Dates and addresses of properties offered and/or shown

Voluntary Affirmative Marketing Agreement

• The use of the Equal Opportunity logo and/or slogan in advertising.

• The display of the Fair Housing logo in real estate offices, lender offices, and title offices.

• Development of educational materials and training courses that promote fair housing practices and procedures.

• Recruitment of minority salaried employees for positions with the real estate industry.