![Examples:
3BR: “No kids allowed.” Odessa, TX
3BR: “3 Adults” Keaau, HI
2BR: “Mature couple or single with no children” Brooklyn,
NY
2BR: “No children, pets ok” Brooklyn, NY
2BR: “[N]ot suitable for kids” HI
3BR: Duplex: “Christian atmosphere” Evansville, IN
2BR: “Christian landlord is living in one of the units.”
Chicago, IL
1BR: “Prefer clean Christian” AK](https://image.slidesharecdn.com/gctafairhousingandinternetadvertising-141208151940-conversion-gate02/75/Fair-Housing-and-Internet-Advertising-8-2048.jpg)
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Fair Housing and Internet Advertising
The document discusses fair housing laws and how they apply to internet advertising. It provides examples of housing advertisements that could violate fair housing laws by implying preferences based on protected classes like families with children, religion or race. Advertisers are advised to avoid words, phrases, symbols or photos that indicate limitations or preferences for certain groups in order to comply with laws prohibiting housing discrimination.
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Fair Housing and Internet Advertising
- 1. Fair Housing and Internet Advertising
- 3. Quick Intro Instructor at the Arizona School of Real Estate and Business for 5 years Mortgage professional for 18 years Former Big4 auditor ASU Grad (4th Generation) Husband and Father
- 4. Categories of Risk Compliance Risk Compliance risk is the risk to earnings or capital arising from violations of, or non-conformance with, law, rules, regulations, prescribed practices, or ethical standards. Compliance risk also arises in situations where the laws or rules governing certain activities or clients may be ambiguous or untested. Compliance risk exposes the institution to fines, civil money penalties, payment of damages, and the voiding of contracts. Compliance risk can lead to a diminished reputation, reduced franchise value, limited business opportunities, lessened expansion potential, and lack of contract enforceability. Compliance risk is often overlooked as it blends into operational risk and transaction processing. A portion of this risk is sometimes referred to as legal risk. This is not limited solely to risk from failure to comply with consumer protection laws; it encompasses all laws as well as prudent ethical standards and contractual obligations.
- 5. Internet Advertising Websites Craigslist Blogs Facebook Twitter Pinterest Zillow IDX and CRM Integration Lead Capture and Lead & Client Management Single-Property Websites Mobile Applications
- 6. Online Co-Marketing Co-BrandedVideo Marketing http://www.inman.com/next/co-branded-video-marketing-how-realtors-and-lenders-can-combine-efforts-costs-and- results-to-grow-their-business/
- 7. Online Co-Marketing RealEstate Marketing Software http://www.listingbooster.com/ http://www.marketleader.com http://www.domoreloans.com/ http://youtu.be/13NP7a37k_0 IDX and CRM Integration Lead Capture and Lead & Client Management Single-Property Websites Mobile Applications
- 8. Examples: 3BR:“No kids allowed.” Odessa, TX 3BR: “3 Adults” Keaau, HI 2BR: “Mature couple or single with no children” Brooklyn, NY 2BR: “No children, pets ok” Brooklyn, NY 2BR: “[N]ot suitable for kids” HI 3BR: Duplex: “Christian atmosphere” Evansville, IN 2BR: “Christian landlord is living in one of the units.” Chicago, IL 1BR: “Prefer clean Christian” AK
- 9. I. Federal FairHousing Legislation A. Fair and equitable treatment in housing and real estate transactions is a right by law. The Fair Housing Act was passed on April 11, 1969 It shall be unlawful, because of race, color, religion, sex, handicap, familial status, or national origin, to restrict or attempt to restrict the choices of a person by word or conduct in connection with seeking, negotiating for, buying or renting a dwelling so as to perpetuate, or tend to perpetuate, segregated housing patterns, or to discourage or obstruct choices in a community, neighborhood or development. (24 CFR Part 14, Section 100.70(a)).
- 10. The First FairHousing Law Civil Rights Act of 1866 All citizens of the United States shall have the same right, in every State and Territory, as is enjoyed by white citizens thereof to inherit, purchase, lease, sell, hold, and convey real and personal property. The U.S. Supreme Court in a 1968 decision stated that section 1982 of the Civil Rights Act of 1866 applies to all race discrimination in the sale or rental of property.
- 11. II. Federal FairHousing Act or Title VIII of the Civil Rights Act of 1968 A. Prohibits discrimination based on: 1. Race 2. Color 3. Religion 4. Sex 5. National origin 6. Disability 7. Familial status B. Covers all housing transactions and services including advertising, rentals, sales, lending, and insurance, as well as harassment. C. Prohibits using discriminatory advertising or any other notice that indicates a limitation or preference or intent to make any limitation, preference, or discrimination.
- 12. DISCRIMINATION BY PROTECTEDCLASS NFHA 2009 Fair Housing Trends Report Basis NFHA HUD FHAP DOJ Race 18.5% 31% 36% 39% Disability 31.3% 49% 43% 36% Family Status 17.5% 17% 16% 21% National Origin 9.5% 9% 14% 6% Sex 3.9% 9% 11% 9% Religion 1.5% 2% 3% 6% Color 0.6% 1% 3% n/a Other* 17.1% 4% 6% n/a
- 13. Advertising Disability Access HUD regulations make clear that is unlawful to discriminate based on individual’s disability. Regulations are not intended to prohibit any real estate provider from including information which highlights the availability of accessible housing. It is entirely proper for a real estate provider to advertise that a dwelling is accessible to people with disabilities or it may describe other features that make it accessible without violating any legal prohibition.
- 14. III. Fair Housingin Advertising A. Real estate advertising should take steps to ensure that advertising that they publish does not convey a message of preference for or against any protected group, whether through words, pictures or other images. Fair housing law prohibits not only real estate advertising that is explicitly discriminatory, i.e. “for whites only,” but also advertising which uses indirect means, such as words, cues, or photos to convey a discriminatory message (i.e. advertising which uses only white models).
- 15. III. Fair Housingin Advertising B. Use of Words, Phrases or Symbols 1. The use of words, phrases, and symbols to convey overt or implicit discriminatory preferences or limitations is prohibited. As a real estate advertiser it is important that one understand that the law prohibits not only advertisements that express a preference against certain homeseekers, i.e. blacks or children, but also those that express a preference for a particular type of person, i.e. “Jewish tenants sought” or “ideal for female tenant”. Both types of advertisements may indicate a “preference, limitation or discrimination” based on a protected class.
- 16. III. Fair Housingin Advertising a. words descriptive of dwelling, landlords and tenants - White private home, Colored home, Jewish home, Hispanic residence, adult building. b. words indicative of a protected class (1) Race – Black, Caucasian, Asian, American Indian. (2) Color – White, Black, Colored (3) Religion – Protestant, Christian, Catholic, Jew. (4) National origin – Mexican American, Puerto Rican, Philippine, Polish, Hungarian, Irish, Italian, Chicano, African, Hispanic, Chinese, Indian, Latino.
- 17. III. Fair Housingin Advertising words indicative of a protected class (5) Sex – the exclusive use of words in advertisements stating or tending to imply that the housing being advertised is available to persons of only one sex and not the other, except where the sharing of living areas is involved. (6) Disabled – physically impaired, blind, deaf, mentally ill, physically fit. Nothing in this part restricts the inclusion of information about the availability of accessible housing in advertising of dwellings. (7) Familial status – adults, children, singles, mature persons. Nothing in this part restricts advertisements of dwellings which are intended and operated for occupancy by older persons and which constitute housing for older persons.
- 18. III. Fair Housingin Advertising c. catchwords - words and phrases used in a discriminatory context should be avoided. (e.g. restricted, exclusive, private, integrated) Catchwords convey preferences for one group over another or send signals about a community's makeup. d. symbols and logotypes which imply a protected class
- 19. III. Fair Housingin Advertising e. colloquialisms - words or phrases used regionally or locally that seeks to imitate informal speech which imply or suggest a protected class Colloquialisms or colloquial language is considered to be characteristic of or only appropriate for casual, ordinary, familiar, or informal conversation rather than formal speech or writing. Slang or Dialect http://www.facebook.com/note.php?note_id=117545201594184
- 20. III. Fair Housingin Advertising f. directions to real estate for sale or rent that imply discriminatory preference, limitation or exclusion. For example, references to real estate location made in terms of racial or national origin significant landmarks, such as an existing black development (signal to blacks) or an existing development known for its exclusion of minorities (signal to whites). Specific directions which make reference to a racial or national origin significant area may indicate a preference. References to a synagogue, congregation or parish may also indicate a religious preference. g. area or location description - using the names of facilities which cater to a particular racial, national origin or religious group, such as country club or private school designations, or names of facilities which are used exclusively by one sex may indicate a preference.
- 21. Here’s an emergingtrend that we’re seeing in housing discrimination – agents using school districts as a proxy for race. This map of an area outside New York City. The colored areas indicate the percentage of African American and Latino students, with white being neighborhoods with the lowest percentage, and the red areas with the highest percentage. In our testing, we found that all of the White testers were told that School Districts 14 and/or 20 were the best. The green dots indicate the locations of homes seen by them, and you can see they are all in areas in white. The yellow dots indicate the locations of homes seen by African-American testers and you can clearly see that they are nearly all located in shaded areas where African American and Latino students reside.
- 23. Redlining and DisparateImpact
- 24. Appendix I: 1995HUD Memorandum, Guidance Regarding Advertisements Under §804(c) of the Fair Housing Act
- 25. C. Human ModelAdvertising 1. Real estate advertising including photos or drawings may not be used to indicate exclusiveness. 2. Should be clearly definable as reasonably representing majority and minority groups in the metropolitan area, both sexes, and when appropriate, families with children. 3. Should portray persons in equal social settings and indicate to the general public that the housing is open to all without regard to race, color, religion, sex, handicap (disability) familial status or national origin, and is not for the exclusive use of one such group.
- 26. C. Human ModelAdvertising
- 27. D. Equal HousingOpportunity Symbols 1. All advertising for the sale, rental, or financing of housing should contain an equal housing opportunity logo, statement or slogan. 2. Logo or statement should be a part of each advertisement and should be placed in visible location and be a comparable size of other symbols or text used in the advertisement. 3. Applicable to advertisement for sale, rental and financing of housing.
- 28. Advertising for Roommates There is confusion about what is or not proper language that can be used for advertisements in seeking roommates. Such advertisements may refer to the desired sex of the tenant, but only where the sharing of living areas is involved or where the advertisement is for a dormitory for an educational institution. Such preference is not permissible where the advertisement merely involves the rental of separate units in a single or multi- family dwelling (i.e. a landlord who seeks to rent a basement apartment with no shared living quarters, could not advertise for a male tenant only). The only exception regarding advertising for a roommate is with respect to the person’s sex. In no case may a housing advertisement seek a roommate of a particular race, religion, or other protected class.
- 29. IV. Print MediaPublishers Are Liable for Discriminatory Advertising A. United States v. Hunter, 459 F.2d 205 (4th Cir. 1972) cert denied, 409 U.S. 934 (1972): 1. Court ruled that congress intended for the Fair Housing Act to apply to publishers for placing discriminatory advertisements, as the widespread appearance of discriminatory advertisements may have a harmful effect on the general aims of the Act. B. Ragin v. The New York Times Co., 923 F.2d 995 (2d Cir.), cert. denied, 502 U.S. 821 (1991): 1. The New York Times, a publisher, was found in violation of the Fair Housing Act for the longstanding practice of allowing the publication of advertisements using "human models" that did not reasonably represent the percentage of blacks and other minorities in the New York City metropolitan area. The ruling showed that a plaintiff alleging discrimination need not establish that the defendant intended to express a racial preference in the ad.
- 30. V. Fair HousingApplication to Internet Advertising Fair Housing imposes legal requirements on anyone that participates in any fashion in the “making, printing or publishing” of a real estate advertising. This includes newspapers, magazines, radio stations, television stations, cable television outlets, advertising agencies, Internet web sites, as well as the persons or companies conducting the underlying sale or rental transactions.
- 31. V. Fair HousingApplication to Internet Advertising A. The Internet has replaced traditional print media as the primary source of housing advertisement. B. Most recent NAR statistics indicate that the majority of home shoppers use the Internet as part of their home search. C. Housing advertisers who post discriminatory online classified are in violation of the Fair Housing Act
- 32. V. Fair HousingApplication to Internet Advertising D. Position held by HUD 1. 2006 HUD Memorandum, Fair Housing Act Application to Internet Advertising (seeAppendix II) a. "Just as the Department has found newspapers in violation of the Fair Housing Act for publishing discriminatory classifieds, the Department has concluded that it is illegal for Web sites to publish discriminatory advertisements."
- 33. V. Fair HousingApplication to Internet Advertising E. Online Housing Providers Challenge to the Fair Housing Act 1. Online housing providers claim that they are exempt from liability under the Fair Housing Act. F. Communications Decency Act (CDA), 47 U.S.C § 230 1. Intended to protect families from online pornography and other forms of indecency. 2. States that the operators of Internet services are not to be construed as publishers, and thus are not legally liable for the words of third parties who use their services. 3. The CDA makes exceptions to this rule as it relates to federal criminal statutes and intellectual property law, but does not make explicit exceptions for the Fair Housing Act.
- 34. V. Fair HousingApplication to Internet Advertising G. Court Decisions Regarding Online Housing Providers 1. Two recent major court decisions have ruled in favor of online housing providers. 2. Chicago Lawyers' Committee for Civil Rights Under Law v. Craigslist, 519 F.3d 666 (7th Cir. 2008) a. The court ruled that the CDA protects online information systems from being treated as the publisher or speaker of any information provided by a third party, including discriminatory housing advertisements.
- 35. V. Fair HousingApplication to Internet Advertising G. Court Decisions Regarding Online Housing Providers 3. Fair Housing Council v. Roommates.com, 521 F.3d 1157 (9th Cir. 2008) a. The court ruled that an online housing provider could be held liable under the Fair Housing Act for drafting and publishing questionnaires that required members to answer questions that potentially enabled other members to discriminate against them. b. However, the court also ruled that a web service operator is provided immunity as a publisher within the meaning of the CDA, when it publishes the comments as written by a third party.
- 36. Website or BlogDisclaimer Fair Housing Notice All websites should print a notice that they will not knowingly accept advertising that violates fair housing laws. This notice may also include statements regarding the coverage of any local or state fair housing law as well as the federal fair housing laws. Ex. http://www.craigslist.org/about/FHA
Editor's Notes
- #10 The Fair Housing Act was passed on April 11, 1969, just one week after the assassination of Martin Luther King, who was one of our most foremost civil rights leaders. The law states that “it shall be unlawful, because of race, color, religion, sex, handicap, familial status, or national origin, to restrict or attempt to restrict the choices of a person by word or conduct in connection with seeking, negotiating for, buying or renting a dwelling so as to perpetuate, or tend to perpetuate, segregated housing patterns, or to discourage or obstruct choices in a community, neighborhood or development.” The Fair Housing Act is the only civil rights law with dual purposes, which is not only to eliminate housing discrimination, but also to promote residential integration. The Act was later amended in 1988 and together, the 1968 Fair Housing Act and 1988 Amendments give protection to 7 classes: race, color, national origin, sex, religion, familial status and disability.? The 1988 amendments were especially important because it not only added disability and familial status to the protected classes, but enforcement rights were added to provide government representation (for FREE) when investigations find violations of the FHA. This is the only federal law that – if your rights have been violated – HUD will appoint council to represent you. For disability, a landlord or builder must make what the Act defines as “reasonable modifications” to structure, and “reasonable accommodations” to rental or condominium policies to allow persons with disabilities to fully enjoy the property. Also, the cap on punitive damages was also removed. And as a result of the amendment, civil penalties can now be awarded in administrative hearings. Before the passage of this amendment, the penalties for littering were more severe than the penalties for discriminating. This amendment clearly gave the act some teeth. Housing-related hate activity, such as cross burning, property damage and harassment, is also covered by the Fair Housing Act. The Fair Housing Act provides legal and administrative recourse for victims of housing discrimination. Consumers may file complaints with the Department of Housing and Urban Development (HUD) or their local human rights commission, or contact a private fair housing organization (of which there are more than 100 across the country).
- #12 Fair Housing Act. passed on April 11, 1969 The law states that “it shall be unlawful, because of race, color, religion, sex, handicap, familial status, or national origin, to restrict or attempt to restrict the choices of a person by word or conduct in connection with seeking, negotiating for, buying or renting a dwelling so as to perpetuate, or tend to perpetuate, segregated housing patterns, or to discourage or obstruct choices in a community, neighborhood or development.” The Act was later amended in 1988 and together, the 1968 Fair Housing Act and 1988 Amendments give protection to 7 classes: race, color, national origin, sex, religion, familial status and disability.?
- #13 NFHA = National Fair Housing Alliance FHAP = Fair Housing Assistance Program The “other” category for NFHA complaints represents complaints arising from categories protected at the state or local level including sexual orientation, source of income, marital status, medical condition, age, or student status. The “other” category for HUD and FHAP complaints represents complaints of retaliation. HUD, FHAP, and DOJ data are for Fiscal Year 2008. Totals may exceed 100 percent, because a single complaint may have multiple bases. Other than NFHA’s data, percentages are rounded to the nearest whole number.
- #17 24 CFR Part 109 is no longer officially part of the Code of Federal Regulations. Part 109 was withdrawn from the Code of Federal Regulations by directive no. FR-4029-F-01, effective May 1, 1996. We have included the Part 109 regulations here because they still apparently represent the position of HUD on advertising, except as superceded by Roberta Achtenberg's memo of Jan. 9, 1995.
- #18 24 CFR Part 109 is no longer officially part of the Code of Federal Regulations. Part 109 was withdrawn from the Code of Federal Regulations by directive no. FR-4029-F-01, effective May 1, 1996. We have included the Part 109 regulations here because they still apparently represent the position of HUD on advertising, except as superceded by Roberta Achtenberg's memo of Jan. 9, 1995.
- #19 24 CFR Part 109 is no longer officially part of the Code of Federal Regulations. Part 109 was withdrawn from the Code of Federal Regulations by directive no. FR-4029-F-01, effective May 1, 1996. We have included the Part 109 regulations here because they still apparently represent the position of HUD on advertising, except as superceded by Roberta Achtenberg's memo of Jan. 9, 1995.
- #20 24 CFR Part 109 is no longer officially part of the Code of Federal Regulations. Part 109 was withdrawn from the Code of Federal Regulations by directive no. FR-4029-F-01, effective May 1, 1996. We have included the Part 109 regulations here because they still apparently represent the position of HUD on advertising, except as superceded by Roberta Achtenberg's memo of Jan. 9, 1995.
- #21 24 CFR Part 109 is no longer officially part of the Code of Federal Regulations. Part 109 was withdrawn from the Code of Federal Regulations by directive no. FR-4029-F-01, effective May 1, 1996. We have included the Part 109 regulations here because they still apparently represent the position of HUD on advertising, except as superceded by Roberta Achtenberg's memo of Jan. 9, 1995.
- #22 Here’s an emerging trend that we’re seeing in housing discrimination – agents using school districts as a proxy for race. This map of an area outside New York City. The colored areas indicate the percentage of African American and Latino students, with white being neighborhoods with the lowest percentage, and the red areas with the highest percentage. In our testing, we found that all of the White testers were told that School Districts 14 and/or 20 were the best. The green dots indicate the locations of homes seen by them, and you can see they are all in areas in white. The yellow dots indicate the locations of homes seen by African-American testers and you can clearly see that they are nearly all located in shaded areas where African American and Latino students reside. So, as you can see, housing discrimination continues to be very much a real problem. Let’s move now on to public policy and examine what the political landscape is for fair housing.
- #23 Here’s an emerging trend that we’re seeing in housing discrimination – agents using school districts as a proxy for race. This map of an area outside New York City. The colored areas indicate the percentage of African American and Latino students, with white being neighborhoods with the lowest percentage, and the red areas with the highest percentage. In our testing, we found that all of the White testers were told that School Districts 14 and/or 20 were the best. The green dots indicate the locations of homes seen by them, and you can see they are all in areas in white. The yellow dots indicate the locations of homes seen by African-American testers and you can clearly see that they are nearly all located in shaded areas where African American and Latino students reside. So, as you can see, housing discrimination continues to be very much a real problem. Let’s move now on to public policy and examine what the political landscape is for fair housing.