Operation Home Sweet Home

Ever heard of the Fair Housing testing program, where someone visits rental communities to observe customer service? HUD and local fair housing agencies use such a testing process to assess a specific complaint or to check a random market for fair housing compliance. Any applicant could be a fair housing tester.

Fair housing testing is a tool used to measure the practices of housing providers relating to the Fair Housing Act. Some unlawful housing discrimination practices can only be discovered through fair housing testing. Information gathered through fair housing testing can be used as evidence to support a client’s administrative housing discrimination complaint with the Department of Housing and Urban Development or a private lawsuit against a housing provider. The United States Supreme Court has recognized and affirmed the important of fair housing testing in fighting housing discrimination.

In order to enforce fair housing laws, the Housing and Civil Enforcement Section of the Civil Rights Division of the United States Department of Justice (“DOJ”), brings suit to enforce the Fair Housing Act, which prohibits discrimination on the basis of race, color, religion, national origin, sex, disability, and familial status. The Fair Housing Act authorizes the DOJ to bring suits where investigations yield evidence of a pattern or practice of illegal housing discrimination.

In 1991, the DOJ established a fair housing testing program and commenced testing in 1992. Testing refers to the use of individuals who, without any bona fide intent to rent or purchase a home, apartment, or other dwelling, pose as prospective buyers or renters of real estate for the purpose of gathering information, which may indicate whether a housing provider is complying with fair housing laws. The primary focus of the fair housing testing program has been to identify unlawful housing discrimination based on race, national origin, disability, or familial status.

The DOJ employs various means to accomplish testing in local communities, including contracts with private fair housing organizations, contracts with individuals, and by using non-attorney DOJ employees throughout the country. The DOJ employees are volunteers who have been trained to participate as testers. Since 1992, the testing program has recruited and trained over 1,000 employees from various DOJ components throughout the nation to participate as testers. These are in addition to the numerous individuals retained by private fair housing organizations. The Housing and Civil Enforcement Section conducts numerous investigations simultaneously at any given time.

Testing is a method to determine whether or not a home seeker is treated differently in his or her search for housing. A person’s race or national origin, for example, would be impermissible factors upon which to base a denial of an opportunity to purchase a home. Testing for housing discrimination involves individual testers posing as prospective home buyers or renters. Testers are paired and assigned profiles so that they are equally qualified to rent or purchase an apartment or home in question. They are similar in all respects except for one of the protected classes, such as race, color, religion, sex, handicap, familial status, national origin, age, or marital status. The experiences of testers are used to compare the treatment of one home seeker (protected class) to another (non-protected class). In this context, testing measures the difference in treatment afforded a home seeker as determined by the information and services provided by real estate firms, property management firms, rental agents/brokers and others.

If differences are found that relate to race, color, religion, sex, handicap, familial status, national origin, age, or marital status, a housing discrimination is filed. The vast majority of testing cases filed to date are based on testing evidence that involved allegations of agents misrepresenting the availability of rental units or offering different terms and conditions based on race, and/or national origin, and/or familial status.

In February 2006, the DOJ launched Operation Home Sweet Home, which is a fair housing testing program that employs individuals who pose as renters for purposes of gathering information about possible discriminatory apartment rental practices. The initiative was inspired by the plight of displaced victims of Hurricane Katrina who were suddenly forced to find new places to live. Operation Home Sweet Home, however, is not limited to the areas hit by Hurricane Katrina, but targets housing discrimination all over the country.

So remember that any applicant could be a fair housing tester. And, contrary to what most real estate professionals think, it is not easy to spot a tester. You likely will never know that you were visited by testers unless, of course, a discrimination complaint is filed against you.

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To learn more about fair housing issues (and many other real estate topics), please visit us at www.123ConEd.com. We are a leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Fair Housing Testing Program

As a real estate professionals, you need to be aware that there are "secret shoppers" scouting open houses and rental vacancies trying to catch real estate agents in a fair housing violation. Those "secret shoppers" are fair housing testers.

Fair housing testing is an invaluable tool used in measuring the practices of housing providers relating to the Fair Housing Act. Some unlawful housing discrimination practices can only be discovered through fair housing testing. Information gathered through fair housing testing can be used as evidence to support a client's administrative housing discrimination complaint with the Department of Housing and Urban Development ("HUD") or a private lawsuit against a housing provider. The United States Supreme Court has recognized and affirmed the important of fair housing testing in fighting housing discrimination.

In order to enforce fair housing laws, the Housing and Civil Enforcement Section of the Civil Rights Division of the United States Department of Justice ("DOJ"), brings suit to enforce the Fair Housing Act, which prohibits discrimination on the basis of race, color, religion, national origin, sex, disability, and familial status. The Fair Housing Act authorizes the DOJ to bring suits where investigations yield evidence of a pattern or practice of illegal housing discrimination.

In 1991, the DOJ's Civil Rights Division established a fair housing testing program and commenced testing in 1992. Testing refers to the use of individuals who, without any bona fide intent to rent or purchase a home, apartment, or other dwelling, pose as prospective buyers or renters of real estate for the purpose of gathering information, which may indicate whether a housing provider is complying with fair housing laws. The primary focus of the fair housing testing program has been to identify unlawful housing discrimination based on race, national origin, disability, or familial status.

The DOJ's Housing and Civil Enforcement Section employs various means to accomplish testing in local communities, including contracts with private fair housing organizations, contracts with individuals, and by using non-attorney DOJ employees throughout the country. The DOJ employees are volunteers who have been trained to participate as testers. Since 1992, the testing program has recruited and trained over 1,000 employees from various DOJ components throughout the nation to participate as testers. These are in addition to the numerous individuals retained by private fair housing organizations. The Housing and Civil Enforcement Section conducts numerous investigations simultaneously at any given time.

Testing is a method to determine whether or not a home seeker is treated differently in his or her search for housing. A person's race or national origin, for example, would be impermissible factors upon which to base a denial of an opportunity to purchase a home. Testing for housing discrimination involves individual testers posing as prospective home buyers or renters. Testers are paired and assigned profiles so that they are equally qualified to rent or purchase an apartment or home in question. They are similar in all respects except for one of the protected classes, such as race, color, religion, sex, handicap, familial status, national origin, age, or marital status. The experiences of testers are used to compare the treatment of one home seeker (protected class) to another (non-protected class). In this context, testing measures the difference in treatment afforded a home seeker as determined by the information and services provided by real estate firms, property management firms, Realtors, rental agents and others.

If differences are found that relate to race, color, religion, sex, handicap, familial status, national origin, age, or marital status, a housing discrimination is filed. Over the past thirteen years, the DOJ has filed 79 pattern and practice testing cases with evidence directly generated from the fair housing testing program. The vast majority of testing cases filed to date are based on testing evidence that involved allegations of agents misrepresenting the availability of rental units or offering different terms and conditions based on race, and/or national origin, and/or familial status. Of the 79 suits filed, 78 have been resolved. Of the 78 resolved cases, the Department has recovered more than $12 million, including over $2 million in civil penalties and over $10.3 million in other damages.

Don't be surprised if your next customer is actually a fair housing tester. And, don't be confident that you'll be able to spot a fair housing tester "from a mile away" as many agents think. As the fair housing testing program matures, the on-the-ground testers are better trained than ever and even more difficult to detect.

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To learn more about fair housing (and many other topics affecting Michigan real estate professionals), please visit us at www.123ConEd.com. We are the leading provider of online Michigan continuing education courses to real estate professionals.

$120,000 Settlement in Discrimination Lawsuit against Chicago Area Realtors (Resulted from Use of Fair Housing Testers)

I was in the process of updating the online fair housing continuing education courses offered by my school (www.123ConEd.com), when I came across this Fair Housing Act case that was just settled eleven days ago (February 17, 2009). Because fair housing is such an important topic, I thought that I'd post a summary of this case.

On February 17, 2009, the United States Department of Justice (“DOJ”) settled a fair housing steering case brought against RE/MAX East-West, a real estate firm in Elmhurst, Ill., and one of its former real estate agents, John DeJohn. The defendants agreed to pay $120,000 to settle allegations that they had illegally steered prospective home buyers towards and away from certain neighborhoods based on race and national origin.

The lawsuit originated from a complaint filed by the National Fair Housing Alliance (“NFHA”) with the United States Department of Housing and Urban Development (“HUD”). Testing conducted by NFHA of RE/MAX East-West in 2004 and 2005 revealed that Mr. DeJohn had steered an Hispanic tester towards homes in predominantly African-American or Hispanic neighborhoods, but had encouraged a similarly situated white tester to look at listings in predominantly white neighborhoods. Both testers had contacted Mr. DeJohn about the same advertised listing. According to the DOJ’s complaint, Mr. DeJohn also told the white tester, "I don’t care if you are a bigot. If we go to an area and you don’t like it, just let me know. I can’t be a bigot but you can be one," or words to that effect. After an investigation, HUD found reasonable cause to believe that unlawful discrimination had occurred and referred the matter to the DOJ, which filed a lawsuit in federal court on July 18, 2008.

The settlement requires the defendants to pay $120,000 to the NFHA. The settlement also requires RE/MAX East-West to hire a qualified organization to provide fair housing training to its agents and to maintain records and submit periodic reports to the DOJ. Mr. DeJohn is no longer working as a real estate agent and his Illinois real estate license expires in April 2009. However, the settlement requires Mr. DeJohn to comply with similar training and reporting requirements if he decides to become a real estate agent again in Illinois or any other state.

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Unlawful steering by real estate agents frustrates the rights of people to make fully informed housing choices and perpetuates segregated housing patterns. This case make clear that real estate companies and their agents who steer buyers to different neighborhoods based on race or nationality have violated the Fair Housing Act and can be held liable for large monetary fines. The elimination of racial steering was a principal goal of the Fair Housing Act, when it was signed into law in 1968.

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To learn more about Fair Housing issues in Michigan (and many other topics affecting Michigan real estate professionals), please visit us at www.123ConEd.com. 123 ConEd LLC (www.123ConEd.com) is a leading online provider of continuing education courses to real estate professionals in Michigan. Our online Michigan real estate con ed courses are fully approved and properly certified by the Michigan Department of Labor & Economic Growth. All of our courses are designed to offer our students the most information, as quickly and economically as possible.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Fair Housing Testing Program

As a real estate professional, you need to be aware that are lots of "secret shoppers" scouting open houses and rental vacancies trying to catch real estate agents in a fair housing violation. Those "secret shoppers" are fair housing testers.

Fair housing testing is an invaluable tool used in measuring the practices of housing providers relating to the Fair Housing Act. Some unlawful housing discrimination practices can only be discovered through fair housing testing. Information gathered through fair housing testing can be used as evidence to support a client's administrative housing discrimination complaint with the Department of Housing and Urban Development ("HUD") or a private lawsuit against a housing provider. The United States Supreme Court has recognized and affirmed the important of fair housing testing in fighting housing discrimination.

In order to enforce fair housing laws, the Housing and Civil Enforcement Section of the Civil Rights Division of the United States Department of Justice ("DOJ"), brings suit to enforce the Fair Housing Act, which prohibits discrimination on the basis of race, color, religion, national origin, sex, disability, and familial status. The Fair Housing Act authorizes the DOJ to bring suits where investigations yield evidence of a pattern or practice of illegal housing discrimination.

In 1991, the DOJ's Civil Rights Division established a fair housing testing program and commenced testing in 1992. Testing refers to the use of individuals who, without any bona fide intent to rent or purchase a home, apartment, or other dwelling, pose as prospective buyers or renters of real estate for the purpose of gathering information, which may indicate whether a housing provider is complying with fair housing laws. The primary focus of the fair housing testing program has been to identify unlawful housing discrimination based on race, national origin, disability, or familial status.

The DOJ's Housing and Civil Enforcement Section employs various means to accomplish testing in local communities, including contracts with private fair housing organizations, contracts with individuals, and by using non-attorney DOJ employees throughout the country. The DOJ employees are volunteers who have been trained to participate as testers. Since 1992, the testing program has recruited and trained over 1,000 employees from various DOJ components throughout the nation to participate as testers. These are in addition to the numerous individuals retained by private fair housing organizations. The Housing and Civil Enforcement Section conducts numerous investigations simultaneously at any given time.

Testing is a method to determine whether or not a home seeker is treated differently in his or her search for housing. A person's race or national origin, for example, would be impermissible factors upon which to base a denial of an opportunity to purchase a home. Testing for housing discrimination involves individual testers posing as prospective home buyers or renters. Testers are paired and assigned profiles so that they are equally qualified to rent or purchase an apartment or home in question. They are similar in all respects except for one of the protected classes, such as race, color, religion, sex, handicap, familial status, national origin, age, or marital status. The experiences of testers are used to compare the treatment of one home seeker (protected class) to another (non-protected class). In this context, testing measures the difference in treatment afforded a home seeker as determined by the information and services provided by real estate firms, property management firms, realtors, rental agents and others.

If differences are found that relate to race, color, religion, sex, handicap, familial status, national origin, age, or marital status, a housing discrimination is filed. Over the past thirteen years, the DOJ has filed 79 pattern and practice testing cases with evidence directly generated from the fair housing testing program. The vast majority of testing cases filed to date are based on testing evidence that involved allegations of agents misrepresenting the availability of rental units or offering different terms and conditions based on race, and/or national origin, and/or familial status. Of the 79 suits filed, 78 have been resolved. Of the 78 resolved cases, the Department has recovered more than $12 million, including over $2 million in civil penalties and over $10.3 million in other damages.

*********************************************************************************

To learn more about Fair Housing issues in Michigan (and many other topics affecting Michigan real estate professionals), please visit us at www.123ConEd.com. 123 ConEd LLC (www.123ConEd.com) is a leading online provider of online continuing education courses to real estate professionals in Michigan. Our online Michigan real estate con ed courses are fully approved and properly certified by the Michigan Department of Labor & Economic Growth. All of our courses are designed to offer our students the most information, as quickly and economically as possible.