July 8, 2014
The FHA and HUD have announced a settlement in a case involving discriminatory ads for housing.
According to the press release found on the FHA/HUD official site, “The U.S. Department of Housing and Urban Development (HUD) announced today a Conciliation Agreement between the Connecticut Fair Housing Center (CFHC) and respondents Lil-1 Associates, AllPoints Realty and realtor Lillian Polak. The real estate companies will pay more than $24,000 to settle allegations that they published discriminatory listings and advertisements for condominiums specifying that children were not permitted.”
Borrowers who want to buy a condo unit with FHA mortgage loans don’t always experience this type of illegal discrimination, but it’s good to know that if it does occur, FHA borrowers (or anyone looking to purchase a home or rent one) do have recourse under federal law.
According to the press release, HUDNo.14-83, “The Fair Housing Act makes it unlawful to refuse to sell or rent housing on the basis of race, color, national origin, religion, sex, disability, or familial status. This includes refusing to allow families with children under 18 unless the property qualifies as housing for older persons.”
“Refusing to sell or rent housing to families with children is against the law unless the property meets the very specific requirements of housing for older persons,” said Bryan Greene, HUD’s General Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to enforce the Fair Housing Act and ensure that real estate brokers and agents do not illegally limit the housing options of families because they have children.”
The press release adds that in addition to advertising the illegal “no children” policy, there was also evidence that, “respondents also allegedly verbally communicated the policy of prohibiting families with children to a CFHC tester posing as a potential buyer. The condo complex is not housing for older persons.”
We report these incidents here to remind FHA loan applicants that they do have a way to complain and get resolution in housing discrimination cases. Sometimes the only way to prevent such discrimination is for the victims to step forward and report the illegal behavior. You can file a complaint by calling (800) 669-9777.
Do you have questions about FHA home loans? Ask us in the comments section. You can get information about applying or getting pre-approved for an FHA loan at FHA.com, a private company and not a government website.
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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