October 4, 2017
The Department of Housing and Urban Development has announced a settlement in a Fair Housing case involving complaints against the State of Maryland.
According to HUDNo.17-088, the agency has “…announced an agreement to resolve a discrimination complaint brought by fair housing advocates against Maryland’s Department of Housing and Community Development (DHCD) challenging the fairness of the State’s Low-Income Housing Tax Credit Program.”
Under the terms of the agreement, new or modified policies, incentives, and “more flexible program rules” will be enacted to “streamline the creation of affordable housing in higher opportunity neighborhoods in the Baltimore region”.
The origin of the case involved a complaint filed with HUD in 2011. The Baltimore Regional Housing Campaign (BRHC) reported to HUD that the state of Maryland, “maintained a policy requiring local jurisdictions to approve proposed affordable housing projects prior to the consideration or allocation of Low-Income Housing Tax Credits (LIHTC) to fund construction.”
The coalition filed a complaint about this, alleging “that requiring local jurisdiction pre-approval prevented the placement of LIHTC-funded properties in predominately White areas, thereby limiting housing opportunities for African American and Hispanic families in communities of opportunity”.
Under the new agreement, the State of Maryland will “increase the number of affordable housing units in the region” up to 1,500 units, with “more than 1,000 of those units being new construction”. Affordable housing developers won’t be required to satisfy prior “scoring” or approval requirements “before applying for state-allocated tax credits”.
What does all of this have to do with FHA home loans?
Housing discrimination comes in many forms, and all of it can negatively affect a potential home owner’s chances of successfully finding a home, applying for a mortgage loan, and purchasing the property. Not all house hunters currently own property. Those who live in privately-owned rentals or public housing deserve the same ability to house hunt and select a home.
That is much harder to do when you are entangled in the search for temporary housing and having to deal with discrimination at that level or discrimination during the home buying process. Being aware of your Fair Housing rights under federal law is very important, especially if you begin to suspect you’re the victim of some type of housing discrimination.
Borrowers who do feel they’ve been discriminated against in ANY stage of the housing process (including rentals) should contact the Department of Housing and Equal Opportunity by calling them at (800) 669-9777. Many times, the only way to stop continued discrimination is for the victims of that discrimination to come forward with their complaints. Don’t hesitate to report violations of your Fair Housing rights.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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