first time home buying and fair housing trainer- the-trainer version: january 2010 developed by mbhp...
TRANSCRIPT
First Time Home Buying and Fair Housing
Trainer- the-Trainer Version: January 2010
Developed by MBHP and the Massachusetts Homeownership Collaborative
Purpose of this Train-the-Trainer Presentation This presentation offers a valuable tool to further the
goal of training consumers to be proactive in their homebuyer experience.
While discrimination does not happen in every housing transaction, it is important that first-time home buyers be able to recognize it and have the tools to respond in a way that is comfortable for them.
This presentation can be adapted to best suit your home buyer counseling classes. Adding any real life experiences that your class participants or yourself have would add to the effectiveness of this presentation.
Inclusive Civil Rights Philosophy“Injustice anywhere is a threat to
justice everywhere. We are caught in an inescapable network of mutuality, tied to a single garment of destiny. Whatever affects one directly, affects all indirectly”
Dr. Martin Luther King
Principles of Fair Housing
Provision of equal access and opportunity in housing. Access to housing is a civil right, protected by local, state
and/or federal law There must be the provision of equal access and
opportunity to housing for all persons regardless of their protected class membership
Groups of individuals are designated as protected classes based on a history of discriminatory practices that denied or limited access to housing
Types of Discrimination
Attitudinal: A perception or belief that creates barriers to equal access to housing opportunities.
Intentional: A denial that was imposed purposely to prevent participation in housing
Lack of Awareness: Actions that discriminate because of lack of knowledge of one’s fair housing responsibilities
Action Centered: Developing and acting in systematic refusal of housing to protected class members
Legal vs. Illegal: Discrimination can only be punished legally if it has been defined as a violation of the laws or regulations.
Purpose of Fair Housing Laws To identify who is protected To determine the responsibilities of all involved parties To define the scope of the regulatory protection To authorize jurisdiction for the specifically identified
government entities.
Massachusetts Protected Classes Race Religion National origin Gender Disability Familial status Marital status Sexual orientation Receipt of Public Assistance (including rental vouchers) Military status Genetic history
Who must follow fair housing laws? Property owners/sellers Developers Condo associations and homeowner associations Housing employees such as property managers, clerical
staff maintenance and other housing personnel Attorneys Real estate agents Advertisement venues such as print and broadcast media Other residents in the building, development and
neighborhood Developers, architects and contractors can be held liable
under the accessible design and construction fair housing mandates for units built for persons with disabilities and their families.
Homeownership Activities Not Allowable Under Fair Housing Mortgages: Applying less favorable terms due to one’s protected
class membership. Predatory lending: Applying terms to a loan product knowing that
the individual will be unable to pay. Redlining: Restricting access to a specific geographic area
based on protected class membership. Blockbusting: claiming that property values will drop because
individuals from a protected class are moving into the neighborhood, thereby convincing the homeowner to sell. The real estate agent then gets a commission on the sale.
Advertising: Use of or by broadcast or print media to deny equal access and opportunity. Web listing services are only covered under very specific conditions.
Steering: Advising individuals to purchase homes in particular neighborhoods or failing to show or to inform buyers of homes that meet their specifications due to their protected class
Relationship of Fair Housing to Property Ownership Potential Homeowner Screening:
All applicants, regardless of protected class status, must be screened using identical criteria
Owner Selection:Owners must be selected on ability to fulfill terms of successful ownership, ability to pay mortgage, credit history, etc.
Loan Negotiation:The same process and flexibility must be granted to all applicants and residents.
Confidentiality & sensitivity:Right to privacy of personal informationSelf disclosureLanguage
Communication
Interview process
What you can be asked:1. Amount of Income2. Credit 3. References
What you can not be asked:1. If applicant has a disability or the nature or severity of disability 2. If the applicant has children or the age of the children3. The nature of the relationship between the adult applicants, i.e., marital status4. One’s sexual orientation5. Marital status6. Religion
Examples of Fair Housing Discriminatory Activities Discouraging someone from viewing homes in a specific
neighborhood because of their protected class status Only showing a prospective buyer listings in a specific
neighborhood because of their protected class status Maintaining and utilizing separate lists of properties
based on the discriminatory preferences of the seller.
Examples of Fair Housing Discriminatory Activities: Continued Neighbors’ actions that attempt to stop or discourage the
prospective buyer from buying the property, moving in and/or preventing the family from peaceful and safe enjoyment of their home and the neighborhood.
Directing someone who is eligible for a prime loan to a subprime loan due to the protected class membership.
Asking for a higher credit rating, more references or more extensive proof of income due to protected class membership.
Questionable Questions & Statements I love children, do you have any?
May indicate that the owner does not want to sell to a family with children. (familial status)
Why do you need a 3 bedroom house? Who exactly will be living with you?Could be an owner who does not want to sell to a family with children (familial status) or an unmarried couple (marital status)
Are you looking for a neighborhood with a good public school because the one in this neighborhood is bad.May indicate that the owner does not want sell to a family with children. (familial status)
There are no Baptist churches in this neighborhood.(racial and/or religious discrimination)
There are no grocery stores in this neighborhood that sell ethnic food.(ethnic discrimination)
Questionable Questions & Statements: Continued Do you realize that there are no Chinese restaurants in this
area?(racial discrimination)
Do you need to be near the hospital?(disability discrimination)
This is a family centered neighborhood(marital status and/or sexual orientation discrimination)
I understand that you are a veteran. Are you now drug free and receiving mental health counseling?Could be military status and/or disability discrimination.
This bank will not accept a Sec. 8 voucher as part of your monthly mortgage payment.(public assistance discrimination)
Predatory Lending: Definition
Predatory lending is when borrowers are given loans or encouraged to get loans that come with unreasonable terms and conditions. Often, these lenders target members of fair housing protected classes such as elders, women, as well as racial and ethnic minorities
What makes a loan predatory? The loan terms and conditions exceed those available to
other borrowers with similar levels of credit worthiness from other lenders elsewhere in the lending market.
The terms and conditions are not justified by the creditworthiness of the borrower.
The loans are excessively secured by the borrower's home, particularly around loans for home improvement.
What are the indications that a loan may be predatory
High pressure marketing that is deceptive. Loans are approved without realistic consideration to the
borrower's actual ability to manage payments. Excessive fees built into the loans. Interest rates that exceed what a borrower's credit would
allow. Pressure to finance home improvements that the
borrower does not need or want.
Reasonable Accommodation for Persons with Disabilities Definition:
A request for a change or waiver to policies, practices, procedures or services to provide greater use and accessibility of the housing services.
Request process:An internal formal process can be used but not mandatedAn verbal request is allowableA written note or letter from applicant or tenant is allowable
Reasonable Accommodation: Continued Approval/Denial:
A reasonable accommodation can only be denied if it causes an undue administrative/financial burden or changes the basic nature of the program.If the request does not meet either of these conditions, it must be approved.
Implementation:Must be done in a fair and good faith manner that meaningfully implements the reasonable accommodation request.
Reasonable Accommodation Examples Assistive animals Change of mortgage payment date Waivers to condominium agreements Live-in aide Relocation of residents meetings Large print Sign language Accessible parking spaces
Reasonable Modification for Persons with Disabilities Definition:
A physical alteration to provide greater accessibility and use of the premises to a person with a disability.
Request processAn internal formal process can be used but not mandatedA written note or letter from applicant or tenant is allowable.An verbal request is allowable
Conditions of Approval:Reasonable modification will be done in a professional and code compliant manner.Person(s) doing the reasonable modification is licensed and insured
Reasonable Modification: Continued Who pays for Reasonable Modification:
If under 10 units, the person making the request assumes all costs. If there are 10 or more contiguous units or the building/development is directly government subsidized, housing provider assumes all costs. This would view condominium governing boards as the responsible party for reasonable modifications.
Conditions of restoration: Alteration must be restored when resident vacates the premises if it is internal to the unit and would affect the marketability of such unit.If the alteration was to a common use area or external to the unit, resident is not responsible for restoration.
Implementation:Must be done in a fair and good faith manner that meaningfully implements the reasonable modification request.
Reasonable Modification Examples Ramp Installation of a grab bar Lowering of cabinets Lowering of shelves Flashing door bells Strobe smoke detectors Curb cuts Door hardware Sink hardware Air filtration systems Air conditioners
Fair Housing Complaint Process A complaint can be filed up to one year after the most
recent alleged violation if pursued through the state or federal administrative process. If through the court system, complaint can be filed up to two years of the most recent alleged violation.
The state and federal administrative process does not require filing fees or the use of a private attorney. Complaints should be resolved within 100- 300 days
If the fair housing complaint is pursued through the court system, it is advisable to have legal representation. There are no mandated resolution timelines.
Fair Housing Conciliation Process Generally, conciliation is offered to complainants and
respondents as an alternative to a full investigatory process in the state and administrative fair housing systems.
In the court system mediation is only offered at the request of the complainant and/or respondent. Mediation can be used to resolve the complaint without a full court hearing.
Government Agencies with Fair Housing Responsibilities
Federal: Department of Housing and Urban Development (HUD) & Department of Justice (DOJ)
State: MA Commission Against Discrimination (MCAD) & MA Attorney General’s Office (AGO)
Local: Municipal or county human rights commissions, fair housing commissions
Fair Housing Information Resources HUD Fair Housing & Equal Opportunity:
www.hud.gov DOJ: www.usdoj.gov/crt/housing/fairhousing Fair Housing Accessibility FIRST:
www.fairhousingfirst.org MCAD: www.mass.gov/mcad Attorney General’s Office:
www.mass.gov/ago
Fair Housing Assistance ResourcesBoston Fair Housing Commission1 City Hall Plaza, Room 966Boston, MA 0220Phone: 617.635.4408Web Site: www.cityofboston.gov/civilrights
MA Commission Against Discrimination One Ashburton PlaceBoston, MA 02108Phone: 617-994-6000TTY: 617-994-6196
Cambridge Human Rights Commission51 Inman Street, 2nd FloorCambridge, MA 02139Phone: (617) 349-4396TTY: (617) 492-0235www.cambridgema.gov/HRC
Worcester Fair Housing Partnership 405 Main Street Worcester , MA 01608 (508) 752-3718 / (800) 649-3718 / TTY (508) 755-3269 (phone) (508) 752-5918 (fax) [email protected], [email protected] and
Fair Housing Center of Greater Boston59 Temple Place #1105Boston, MA 02111Phone: 617-399-0491TTY users, please call the MA Relay Service at 1-800-439-
2370www.bostonfairhousing.org
Massachusetts Fair Housing Center57 Suffolk StreetHolyoke, MA01040Phone: 1-800-675-7309or 413-539-9796 ext-101Fax 413-533-9978www.massfairhousing.org
HUD FHEO Region IThomas P. O'Neill, Jr. Federal Building10 Causeway Street, Boston, Massachusetts 02222-1092(617) 994-83001-800-827-5005TTY (617) 565-5453
Conclusion
“It is not enough just to open the gates of opportunity. All our citizens must have the ability to walk through those gates. This is the next and the more profound stage of the a battle for civil rights. We seek not just freedom but opportunity. We seek not just legal equity but human ability, not just equality as a right and a theory but equality as a fact and equality as a result.”
President Lyndon B. Johnson