Fair Housing and Housing Discrimination

What is Fair Housing?

When looking to buy or rent a property it is important to know that you are protected under fair housing laws. Fair housing laws are some of the strongest civil rights statutes on the books. Federal and State laws make it illegal to discriminate against people when renting or purchasing a unit based on any of the following "protected classes": 

  • Race
  • Color
  • Religion
  • National origin
  • Gender or Gender Identity
  • Age
  • Genetic information
  • Disability
  • Ancestry
  • Marital status
  • Familial Status (i.e. families with children under 18)
  • Veteran history/military status of the armed forces of the United States
  • Sexual orientation
  • Status as a person who is a recipient of federal, state, or local public assistance or who is a tenant receiving federal, state or local housing subsidies including rental assistance or rental supplements

The law also covers advertising, including making discriminatory statements. Ads which express a preference for, or exclusion of, a particular group of people are illegal. In addition, there is a duty to provide reasonable accommodations to a person with a disability when it is necessary to ensure an equal housing opportunity.

Fair Lending:

These laws apply to banks and mortgage companies as well. When you are looking for a mortgage, it is essential to compare loan offers from different banks and mortgage companies. Be wary of mortgage brokers who tell you there are no other options or who advertise "No credit? Bad credit? No problem!" Don’t let yourself feel pressured into a mortgage that is not right for you. Here are some ways to avoid problems: 

  • Educate yourself. Take a First Time Homebuyer course and understand the industry terminology.
  • Be a smart consumer. Shop around and compare mortgage products.
  • Get your finances in order. Know how much you can afford.
  • Talk to someone you trust who isn’t going to make any money from the deal.
  • Never agree to a loan if you don't have the income to cover all of your monthly debts, including the mortgage!
  • Get copies of all documents before closing, and read them carefully. If you do not understand them, seek help in reviewing them.
  • Get a second opinion. Contact a community organization to obtain financial counseling before you sign any documents, or seek advice from an attorney.

The Lead Law:

The Massachusetts lead law, in conjunction with fair housing laws, makes it illegal for a property owner or real estate agent to refuse to sell a home to a family with children because of the presence of lead paint. It is the seller’s responsibility to inform you of the dangers of lead paint, the lead law, and all information they have about the presence of lead paint in the property (e.g. copies of all lead inspection reports). Once you own a home, it is your responsibility to de-lead if you have children under the age of six living there. This law, in conjunction with fair housing laws, makes it illegal for a property owner or real estate agent to refuse to rent to (or to evict) a family with children because of the presence of lead paint. Refusing to rent to families with children is against the law! It is the landlord’s obligation to de-lead their rental properties.

There are funds available to help owners de-lead. The Massachusetts Department of Public Health Childhood Lead Poisoning Prevention Program will refer you to your local city/town resource. For more information call (617) 624-5757 or (800) 532-9571 or go online here. For information on the City of Salem's Housing Rehabilitation Loan Progam, click here.

Remember: If you buy a multi-family house and become a landlord, you are responsible for upholding the fair housing laws!

How To Recognize Housing Discrimination

What Kinds of Actions are Discriminatory?

Housing discrimination can take many forms, including these examples:

  • Steering –  If you are African American being directed to neighborhoods with only African Americans, or if you are Latino to neighborhoods with only Latinos etc.
  • Different prices for different people – For example, the price told to a family with children, or someone who is Asian, or someone with a disability, is different than the price told to a family without those characteristics.  
  • Different terms and conditions for different people – For example, Latino buyers are required to bring a mortgage pre-approved letter before looking at properties, but non-Latino buyers are shown properties without being pre-approved.
  • Outright denial of housing or services – For example “I can’t sell you this house because it has lead paint and you have children” or “I think you would be much more comfortable working with my colleague who is Asian”. 

Examples of behavior that MAY be housing discrimination include:

  • You call and get an appointment to look at a house, but when you get there, you are told that the house was just sold.
  • You are told that the apartment has been rented, but it is listed in the paper again.
  • You are told a higher selling price than what was advertised, or than what you heard others being told.
  • You are told that they cannot rent to families with children because the house has lead paint.
  • You are given terms of rental or sale which are different than those given to other persons.
  • You are directed to or away from certain neighborhoods based on race, national origin, religion, or disability.

If you are a member of a protected class, it is illegal as a general rule for someone to:

  • Refuse to rent to you or sell you housing
  • Tell you housing is unavailable when in fact it is available
  • Show you apartments or homes only in certain neighborhoods
  • Set different terms, conditions, or privileges for sale or rental of a dwelling
  • Advertise housing to preferred groups of people only
  • Refuse to provide you with information regarding mortgage loans, deny you a mortgage loan, or impose different terms or conditions on a mortgage loan
  • Deny you property insurance
  • Conduct property appraisals in a discriminatory manner
  • Refuse to make reasonable accommodations for persons with a disability if the accommodation may be necessary to afford such a person a reasonable and equal opportunity to use and enjoy a dwelling
  • Harass, coerce, intimidate, or interfere with anyone exercising or assisting someone else with his/her fair housing rights
  • This list covers most but not all of the discriminatory housing activities which are unlawful.

Additional Information for Landlords, Property Managers, Realtors

To protect yourself and your rental property investment, it is important to know and understand your fair housing rights and responsibilities. 

Landlord Rights:

You have the right to choose the best tenant for your unit. You can select tenants using the following criteria as long as you apply the criteria equally to all applicants:

  • Credit check (if a tenant has a rental subsidy, a credit check may not be as important a criterion)
  • References from previous landlords
  • Sufficient funds to cover the cost of rent
  • Criminal record check

5 Best Practices to Prevent Discrimination Problems:

  • Be Consistent: Develop and use a standard process with all applicants. Provide accurate and complete information about available units to all people who inquire.
  • Avoid Assumptions: Assess each individual applicant based on the requirements you have developed and not based on their race, national origin, family status, source of income, disability, age, etc.
  • Document Your Search: Keep your selection criteria and rental policy in writing and make sure to document your reason for refusing an applicant.
  • Don’t Be Helpful at Your Own Expense: Although you may mean well, don’t tell a prospective tenant that it would be safer for her children to live on the first floor or ask a disabled person if they can manage the stairs. Allow each person to decide for him or herself where they want to live.
  • Fair Housing is Ongoing: Practicing fair housing does not end when you find a tenant. Make sure all rental policies and services are applied equally to all tenants. Participate in a fair housing training to ensure that you stay up to date on your fair housing responsibilities.

What are the consequences of discrimination?

If a state or federal court or anti-discrimination agency finds that unlawful discrimination has taken place, a tenant may be awarded damages, including the following:

  • Actual Damages. Out-of-pocket costs that the tenant had to pay as a result of the discrimination. This can also include compensation for non-economic injuries like emotional distress and humiliation.
  • Civil Penalties. These range from $16,000 for the first violation, to higher amounts up to $65,000 for subsequent violations. If the U.S. Department of Justice sues, the civil penalty can reach $110,000.
  • Punitive Damages. These awards have no limit and have sometimes been in the millions.
  • Affirmative Relief. This is an order prohibiting a specific act, or requiring a change in action in the future. For example, the landlord may be required to advertise in publications that people of color read. 
  • Attorney’s Fees. Fair housing laws allow the injured party to receive reasonable attorney fees from the party violating his or her rights.

Additional Information for Lenders

Why Should You Avoid Discriminating?

Because if discriminatory housing/lending practices are challenged, you could be subject to the following remedies:

  • Monetary damages
  • Injunctive Relief
  • Civil Penalties
  • Punitive Damages
  • Lawyer’s fees 

Lender Do’s: Best Practices to Avoid Liability 

  • Laws and Regulations – Comply with all applicable state and federal laws and regulations
  • Confidentially – Respect borrowers’ privacy rights by complying with federal and state privacy laws.
  • Equitable Treatment – Maintain a work environment that encourages compliance with these fair lending and consumer best lending practices and facilitates the fair and equitable treatment of consumers.
  • Professionalism – Endeavor to employ a workforce of talented, qualified individuals with diverse backgrounds in compliance with applicable laws.
  • Procedures and Training – Establish internal compliance, fair lending, servicing, quality, audit and disciplinary procedures. Provide training to employees.
  • Compliance – Establish internal procedures to promote compliance with these best practices and applicable law; take appropriate steps to rectify problems.
  • Report Violations – Encourage every employee to report violations to senior management. 
  • Internal Review – On a periodic basis review random samples of loan files to determine compliance.
  • Customer Contact Employee Evaluation – Evaluate the behaviors of “customer contact employees” through appropriate measurement tools. 

Federal Housing and Lending Antidiscrimination Legislation:

  • The Fair Housing Act:  Prohibits discrimination in housing (including mortgage lending) on the basis of race, color, religion, national origin, sex, disability and familial status
  • 42 U.S.C. § 3605(a): It is unlawful for any person or other entity whose business includes engaging in residential real estate-related transactions to discriminate against any person in making available such a transaction, or in the terms or conditions of such transaction, because of race, color, religion, sex, handicap, familial status, or national origin.
  • Equal Credit Opportunity Act: Prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives income from a public assistance program
  • Truth in Lending Act: Requires clear disclosure of key terms of the lending arrangement
  • Additional federal laws: RESPA -  Real Estate Settlement Procedures Act & HOPEA – Home Ownership and Equity Protection Act 

Massachusetts Lending Antidiscrimination Legislation:

  • MA Truth In Lending Act – 4 year right to rescission if misrepresentations
  • M.G.L. c.183 §28C – Refinancing must be in the borrowers interest – burden on lender
  • M.G.L. c. 183C §1 Predatory Home Loan Practices Act – prohibits high cost loans
  • Chapter 206 of the Acts of 2007 – An Act Protecting and Preserving Homeownership - Requires 90 day right to cure before foreclosure initiated
  • M.G.L. c.93A – Consumer Protection Act
  • Attorney General Regulations – Prohibit Foreclosure Rescue Scams; Prohibit Deceptive Mortgage Practices

Fair Housing Resources

Who should you contact if you feel that you have been discriminated against? The following agencies may be helpful in answering your fair housing questions and in providing additional information and guidance on fair housing:

Fair Housing Center of Greater Boston:

The Fair Housing Center of Greater Boston is a private advocacy organization for victims of housing discrimination. They work to eliminate housing discrimination and promote open communities throughout the region. They serve the communities in Essex, Middlesex, Norfolk, Plymouth, and Suffolk counties. They can assist you with filing a complaint in court or with MCAD or HUD, and may act as an advocate on your behalf. The address and contact information for the Fair Housing Center is:

Fair Housing Center of Greater Boston
59 Temple Place #1105
Boston, MA 02111
Phone: 617-399-0491
Fax: (617) 399-0492
TTY users, please call the MA Relay Service at 1-800-439-2370
E-mail
Website

U.S. Department of Housing and Urban Development (HUD):

HUD is the federal agency, which receives and investigates housing discrimination complaints that violate federal law. Complaints must be filed with HUD within one year of the most recent violation. For more information contact:

Boston Regional Office of FHEO
U.S. Department of Housing and Urban Development (HUD)
Thomas P. O’Neill, Jr. Federal Building
10 Causeway Street, Room 321
Boston, MA 02222-1092
Tel: 617-994-8300 or 800-827-5005
Fax 617-565-7313
TTY 617-565-5453
Email
Website

Massachusetts Commission Against Discrimination (MCAD):

MCAD handles all discrimination complaints that fall under state law as well as violations of the federal Fair Housing Act. Complaints of housing discrimination must be filed with MCAD within 300 days of the most recent violation. For more information contact:

Massachusetts Commission Against Discrimination (MCAD)
One Ashburton Place
Sixth Floor, Room 601
Boston, MA 02108
Phone: 617-994-6000
TTY: 617-994-6196
Website

Massachusetts Office of the Attorney General

Civil Rights Division
One Ashburton Place
Boston, MA 02108
Phone: 617-727-2474
TTY: (617) 727-4765
Website

Massachusetts Affordable Housing Alliance (MAHA)

197A Centre Street
Dorchester, MA 02124
Phone: 617-822-9100
Fax: 617-265-7503
Email
Website

Additional Links