Federal fair housing laws prohibit housing discrimination based on race, ethnicity, religion, gender identity or other factors such as disability. They apply to a variety of scenarios in which such discrimination may occur, including when a homeowner refuses to negotiate a purchase or sale, when a landlord fails to make repairs, or when a mortgage lender denies financing.
President Lyndon B. Johnson signed the Fair Housing Act on April 11, 1968, just days after the assassination of Martin Luther King, Jr. Initially focused on racial discrimination, the act became the linchpin of the broader Civil Rights Act of 1968 and was later expanded to include other elements.
But discrimination complaints persist about everything from biased housing assessments to race-based instruction: In 2022, organizations across the country received more than 33,000 fair housing complaints.
Black homebuyers face discrimination from nearly half of the real estate agents and brokers they employ, according to a three-year Newsday investigative project published in 2019. A multi-year study conducted by the National Fair Housing Coalition a decade ago found that 87% of real estate agents engaged in racial steering, choosing to only show clients homes in areas where most of the neighbors were of the same race.
“Real estate agents have gotten a lot more sophisticated in the ways they perpetrate housing discrimination, but it still exists,” said Lisa Rice, president of the National Fair Housing Coalition. “Many real estate agents are misinformed and not genuinely supportive of fair housing.”
Who is protected by the Fair Housing Act?
The Fair Housing Act completely banned all discriminatory practices related to the home buying and renting process and made it a crime to treat people unfairly on the basis of race, religion, or national origin. Violators could be fined tens of thousands of dollars or more. Sex was added as a protected category in 1974.
Landlords and home sellers who refuse housing because of race can be sued for civil damages, and real estate agents who assist them can also be held liable.
Are there other fair housing laws?
Yes, it’s over 150 years old. America’s first civil rights law, the Federal Civil Rights Act of 1866, banned housing discrimination on the basis of race or skin color for over a century. The prevalence of racist terrorist groups like the Ku Klux Klan and a lack of federal penalties for those who violated the law meant that the law was ineffective for over a century, but today this early law remains the foundation of law.
“The law is very clear,” Rice said, “you cannot take race into consideration in any way when it comes to housing.”
What to do if you believe you have been discriminated against?
There are two agencies you can contact: the U.S. Department of Housing and Urban Development (HUD) and your state or local fair housing organization.
HUD allows anyone who believes they are a victim of housing discrimination to report it online, by phone, or by mail, and the Office of Fair Housing and Equal Opportunity will investigate cases where civil rights are suspected to have been violated. A reporting link can be found here.
All states are required to follow federal fair housing laws, and most states also have their own fair housing laws. HUD maintains an online database of state and local fair housing assistance program offices and encourages anyone who believes they have been discriminated against in the housing process to also contact the agency in the state where the incident occurred.
Many states and cities also work with local nonprofits and civil rights organizations that accept fair housing complaints and help put people in trouble in touch with legal counsel. Fair housing organizations often work in conjunction with agencies that handle employment discrimination, so don’t be surprised if you’re directed to an employment discrimination office when seeking help.
What obligations do real estate agents have under the Fair Housing Act?
Real estate agents are obligated not to discriminate against their clients and are also obligated not to assist clients who wish to discriminate, so if an agent represents a seller who refuses to offer a home to a black person, both the seller and the agent could be held liable for civil rights violations.
“If you’re a real estate agent and you think someone may be violating the law, you have to report it to your broker or your manager, and also to the seller involved. You have to let the seller know that this is the law and that discriminatory behavior will not be tolerated,” Rice said. Additionally, you have an obligation to let the seller know that you will not represent them if they demonstrate discriminatory intent, which could mean firing the client or terminating the sales contract.
Real estate agents who work with discriminatory clients could have their real estate licenses revoked by the State Real Estate Commission, and Rice added that homebuyers who believe their real estate agent has engaged in discriminatory behavior are encouraged to report it to the State Real Estate Commission, in addition to HUD and their local fair housing office.
