May 28, 2013
A press release issued by the FHA and HUD announces the settlement of a housing discrimination case in Alabama. According to HUDNo.13-077, “The U.S. Department of Housing and Urban Development (HUD) announced today that LLB&B, Inc., a real estate company based in Mobile, AL, will pay $29,000 as part of a Conciliation Agreement resolving allegations that one of its agents refused to show a condominium to a prospective homebuyer because he is African American. ”
This violation of the Fair Housing Act came to light thanks only to a misdirected phone call. According to the press release, “The homebuyer alleged that he learned of the discrimination when the real estate agent inadvertently left a message on his telephone voicemail indicating her belief that white neighbors would ‘panic’ at the prospect of an African American neighbor.”
Later in the press release, “In the message, the real estate agent, referring to the white neighbors who lived near the condominium, allegedly stated, ‘Those people will panic when they see a black person drive up and look at it.’ She added: ‘I called him back. He didn’t answer so that was good! If I didn’t call him back he could sue me for prejudice.’ The man shared the recording with a HUD investigator, who then shared it with the real estate company. Upon hearing the message, the owners of LLB&B terminated the agent’s employment.”
As the press release indicates, Fair Housing Act laws make it illegal for sellers, agents and anyone else involved in housing or real estate, “to discriminate in the sale or rental of housing based on, race, color, national origin, religion, sex, familial status, or disability. It also prohibits refusing to show a condominium to a prospective buyer and making statements that discriminate because of race or color.”
“No one should be denied the opportunity to purchase a home because of their race,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “The company has taken steps to resolve this matter, provide relief to the potential homebuyer and prevent a recurrence.”
The real estate company has, according to the press release, agreed to pay the prospective buyer $29,000. It will also “reaquire fair housing training for all its employees, and include the fair housing logo in all its advertising.”
We report these stories to remind borrowers that housing discrimination can and does happen–and that often those discriminated against are the only ones who can help put a stop to these illegal practices–without reporting violations of the Fair Housing Act, there can be no investigation.
Anyone who has experienced discrimination may file a complaint with the FHA/HUD–call the HUD Office of Fair Housing and Equal Opportunity at (800) 669-9777.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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