Fair housing is more than just coursework
In the wake of recent and disturbing news out of New York, where a newspaper reported on numerous alleged fair housing violations, there is much to think about regarding industry progress when it comes to treating people the right way.
The real estate industry champions the goal of home ownership and housing for all. Does a continuing education (CE) course accomplish this goal? Not necessarily. Of course, CE is a great way to teach the applicable laws and increase awareness of issues, but true inclusivity and fair housing will only be achieved when lessons are put into real life situations and experiences.
Illinois REALTORS®, local REALTOR® associations and the National Association of REALTORS® (NAR) are organizations which have a long history of supporting human rights, particularly when it comes to housing. Illinois REALTORS® and the others publish policies, articles, suggested procedures, practices and presentations for their members as to how they can serve consumers looking for housing in a respectful and uniform manner.
Here are some links to just a few fair housing resources. (Some may require a logon):
- Legal A to Z: Fair Housing resources for REALTORS®
- NAR’s What everyone should know about equal opportunity housing
- The Illinois Human Rights Act. (Note that Article 3 of the IL Human Rights Act deals with housing)
- Code of Ethics and Standards of Practice of the National Association of REALTORS®. (Note that Article 10 addresses professional services to the public)
Failure to follow rules can result in steep consequences
The consequences for failure to follow non-discriminatory practices are, and should be, severe. Outside the classroom, Illinois REALTORS® has been at the table with state regulators when legislation was proposed, specifically within the Illinois Real Estate License Act (RELA), regarding consequences for licensees found to have engaged in illegal discrimination against members of protected classes.
In fact, if a licensee has been adjudged guilty of illegal discrimination in a civil or criminal proceeding, while acting in their licensed capacity, the Illinois Department of Financial and Professional Regulation (IDFPR) must suspend or revoke the individual’s license. IDFPR has no discretion here.
Furthermore, if the licensee has been found guilty of illegal discrimination by an administrative body, while acting as a real estate broker, IDFPR must impose the discipline outlined in RELA.
It is imperative that managing brokers charged with oversight of sponsoring brokerage companies’ licensees review the company policies, regularly (and actually) train on the company policies, and to the extent possible, oversee the licensees, even if they are treated as independent contractors for tax purposes.
Companies can provide helpful resources that include best practices about how to treat all consumers who come to them seeking housing. A few are listed here: (Some resources may require a logon)
- Fair Housing is a serious matter: A guide for real estate professionals
- Fair Housing is a serious matter: A guide for sellers
- Five things you need to know about fair housing
- U.S. Department of Housing and Urban Development fair housing rights and obligations
- Fair housing links and resources from NAR
Fair housing rules exist at federal, state and sometimes local levels
It is also important to be aware that fair housing is addressed under the federal Fair Housing Act and other federal regulations, at the state level under Article 3 of the Illinois Human Rights Act, and possibly on the local level under local fair housing and/or human rights ordinances. It is imperative that real estate professionals check local fair housing related regulations as many contain protected classes in addition to those protected under federal and state statutes.
A common issue that arises in the context of discrimination is called steering, or to define it conversationally, the practice of suggesting where someone might feel more comfortable living based on the suggestion of the real estate professional (in this case) rather than the consumer. This practice is illegal. The U.S. Department of Housing and Urban Development (HUD) offers examples of steering and how to prevent this illegal practice.
Let the consumer help the broker define the type of housing, the area and the price range which the consumer wishes to explore. At that point, the broker would follow established office policies to financially qualify anyone who seeks real estate brokerage services.
Once a price range is known, the broker should provide all available housing based on the legitimate parameters established by the client. The broker must refrain from relying on pre-conceived notions as to where a person wants to make their home. If the consumer is concerned about crime statistics, direct the consumer to the local or state police for objective sources of information. Likewise, for information about schools and places of worship, direct them to objective sources of information.
Article 10 of the REALTOR® Code of Ethics actually prohibits REALTORS® from volunteering information about the racial, religious or ethnic composition of any neighborhood when the transaction is one involving the sale or lease of a residence. If asked, follow the suggestions above sending the client to governmental sources of information, for example, which would be objective in nature.
Best practice and the law: ‘Treat all consistently and fairly’
Above all, treat each person who walks through the office door, whether that “door” is physical or virtual, in a uniform, consistent and non-discriminatory manner. Rely on education and established policies and procedures. Be mindful of negative consequences for failure to follow the rules.
Most importantly, let each person commit themselves to the worthy project of fair housing, the goal of housing for all, a collective mindset that inclusion should not be left in the classroom but practiced everywhere, personally and professionally. Different viewpoints help make us all better humans, give us empathy and provide deeper understanding of other practices, cultures and/or challenges while allowing us to see how much we all really have in common.