Chapter 11 - Human Rights and Fair Housing

I. The Foundation of Fair Housing

Fair housing is not just a set of rules; it is a response to the legacy of segregation and systemic barriers like redlining (denying mortgages to specific neighborhoods based on race). As a licensee, you are the gatekeeper to housing and must ensure equal access to opportunity.

Key Supreme Court Cases:

• Plessy v. Ferguson (1896): Established the "separate but equal" doctrine (later overturned).

• Buchanan v. Warley (1917): Struck down municipal ordinances that prohibited blocks from being integrated.

• Brown v. Board of Education (1954): Overturned "separate but equal," signaling the end of legal segregation.

II. Federal Protected Classes

The Civil Rights Act of 1866 prohibits all racial discrimination in the sale or rental of property (no exceptions). The Fair Housing Act of 1968 (Title VIII) and its amendments added more protections.

The 7 Federally Protected Classes:

1. Race

2. Color

3. Religion

4. National Origin

5. Sex (Added in 1974; includes sexual orientation and gender identity as of 2021)

6. Familial Status (Added in 1988; families with children under 18 or pregnant women)

7. Disability (Added in 1988; physical or mental impairments)

III. New York State & Local Protections

New York State Law (Executive Law Article 15) is more restrictive than Federal Law. It adds several protected classes.

Additional NYS Protected Classes:

• Age (18+)

• Marital Status

• Military Status

• Sexual Orientation / Gender Identity or Expression (GENDA)

• Lawful Source of Income (Section 8 vouchers, SSI, alimony, etc.)

• Citizenship/Immigration Status

NYC Specific: The NYC Commission on Human Rights also protects Lawful Occupation, Partnership Status, and Criminal History (Fair Chance for Housing Act).

IV. Prohibited Acts and Discriminatory Practices

• Steering: Channeling buyers/renters toward or away from specific neighborhoods based on their protected class.

• Blockbusting: Inducing panic selling by telling homeowners that "certain people" are moving in and property values will drop.

• Redlining: Lenders refusing to provide loans in certain geographic areas based on the demographics of that area.

• Unequal Access: Denying access to amenities (like a pool or gym) to certain tenants while allowing others to use them.

V. Broker and Salesperson Responsibilities

Mandatory Disclosures (NYS Regulations):

1. Housing and Anti-Discrimination Disclosure Form: Must be presented at the first substantive contact. You must obtain a signature and keep the record for 3 years.

2. Reasonable Accommodation Notice: Brokers must disclose a tenant’s right to request modifications (physical changes) or accommodations (policy changes) for a disability.

3. The Anti-Discrimination Poster: A specific 11" x 14" poster must be prominently displayed in the office window and at all Open Houses.

Solicitation Rules:

• Cease and Desist Zones: Areas designated by the Secretary of State where homeowners can join a list to stop all real estate solicitations.

• Non-solicitation Orders: A directive prohibiting all licensees from soliciting homeowners in a specific geographic area (often used to prevent blockbusting).

⚠️ EXAM ALERT: QUICK FACTS

• The "Mrs. Murphy" Exemption: In NY, the only significant exemption is for an owner-occupied 2-family home. However, the owner still cannot use discriminatory advertising and cannot discriminate based on Race (due to the 1866 Act).

• Source of Income: It is illegal to refuse a tenant because they use a Section 8 voucher. You cannot say "No Section 8" in an ad.

• Reasonable Modification: In a rental, the tenant usually pays for the physical modification (e.g., a ramp), but the landlord must allow it.

• Implicit Bias: NY law now requires 2 hours of Implicit Bias training and 2 hours of Cultural Competency every renewal cycle to address unconscious stereotypes that lead to discrimination.

• Fines: Fines for Fair Housing violations can reach $50,000 for a first offense and $100,000 for subsequent offenses under NY Human Rights Law.

KEY TERMS

Americans with Disabilities Act (ADA): A federal law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public.

Blockbusting: An illegal practice where real estate agents or speculators convince property owners to sell their houses at low prices by telling them that people of a particular race, color, religion, or national origin are moving into the neighborhood.

Cease and Desist List: A list established by the New York Department of State for specific geographic areas where residents have filed a notice that they do not wish to be solicited by real estate brokers or salespersons.

Civil Rights Act of 1866: A federal law that prohibits all discrimination based on race in the sale or rental of property, without exception.

Disability or Handicap: A physical or mental impairment that substantially limits one or more of a person’s major life activities.

Fair Housing Act of 1968: A federal law (Title VIII of the Civil Rights Act of 1968) that prohibits discrimination in the sale, rental, and financing of dwellings based on race, color, religion, or national origin; it was later amended to include sex, disability, and familial status.

Familial Status: A protected class under the Fair Housing Act that refers to the presence of one or more individuals under the age of 18 living with a parent or legal guardian, as well as pregnant women.

Filtering Down: The process by which housing units, as they age and decrease in value, become occupied by lower-income households.

HUD (Department of Housing and Urban Development): The federal agency responsible for national policy and programs that address America's housing needs and that enforces the federal Fair Housing Act.

Jones vs. Mayer Supreme Court Decision (1968): A landmark Supreme Court case that upheld the Civil Rights Act of 1866, confirming that the law prohibits all racial discrimination, private or public, in the sale or rental of property.

Marital Status: A protected class under the New York State Human Rights Law (but not the federal law) that prohibits discrimination based on whether a person is single, married, divorced, or widowed.

N.Y. State Human Rights Law: A state law that provides broader protections than federal law, prohibiting discrimination in housing based on race, creed, color, national origin, sex, age, disability, marital status, military status, family status, sexual orientation, or gender identity.

Non-Solicitation Order: A rule issued by the Secretary of State that prohibits real estate brokers and salespersons from soliciting listings from all homeowners in a designated geographic area to prevent blockbusting.

Redlining: The illegal practice by lending institutions of denying loans or providing different terms for mortgages in certain neighborhoods based on the racial or ethnic composition of those neighborhoods.

Steering: The illegal practice of channeling prospective home buyers to or away from particular neighborhoods based on their race, religion, or other protected characteristics to maintain the neighborhood's composition.

Testers: Volunteers or employees of public or private agencies who pose as prospective home seekers to investigate whether a real estate office is practicing equal opportunity housing.