Know the Rules and Avoid a Fair Housing Violation!

Fair Housing testers are out in Metro Atlanta.  Although you may have attended many Fair Housing seminars and think you know the ins and outs of staying compliant, you can get caught in an innocent situation and be found liable for a fair housing violation.
 
The Department of Justice brings suit on behalf of the United States to enforce the Fair Housing Act.  The Georgia Commission on Equal Opportunity determines violations of the Georgia Fair Housing Act.  Suit can be brought by either or both for Fair Housing Violations.
 
There are multiple ways to get caught in the Fair Housing net.  One is through Fair Housing Testers and another is having a complaint filed by protected class members that think they have been treated unfairly.
 
The Testing Process
 
Fair housing testing is a strategy used to determine whether people looking for housing are being treated differently, based on their membership in a protected class. Testers are looking for differences in the quality, content, and quantity of information and services provided to seekers of apartments and houses.
The testing process often begins when an individual with a protected characteristic (e.g., race or national origin) files a complaint with a private fair housing advocacy organization that he or she has been treated unfairly.   The process can also be random, without a complainant initiating it.
The characteristics that are most commonly the subject of testing are race, disability, familial status, and national origin.  To determine if discrimination played a part in an applicant’s rejection or in the treatment the individual received, the advocacy group, many of which are funded by HUD, will send a “comparable” person to inquire about renting a unit at the same complex or purchasing a home from the same sales agent.
A testing method that is currently being used in Atlanta involves using 3 different callers to the same agent.  One is African American, another Hispanic and the third Caucasian. All ask the agent if the property is available.  All ask for more information. If the agent tells one caller about the community amenities, but doesn’t tell the others, a flag is raised as possible evidence of discrimination. If an agent requires a pre-qualification from one, but not others, a flag is raised.  If an agent spends more time on a call with one caller, a flag is raised. 
Sales agents do not use set scripts.  An agent may have more time to talk or may not have any time. Although the 3-caller method is supposed to be fair, maybe it’s not, but it is being used.  The key is to be consistent in that initial call.  Ask consistent questions. Give consistent information.  Be available for a follow up call or appointment.  Don’t give the impression that you’re too busy for a call.  That call may just be a tester looking for red flags!
Recently, an RMAA agent was accused of a Fair Housing violation by an applicant for a rental.  The Complainant was treated the same way that the eventual tenant was treated.  The home was presented to both in the same way, with private appointments. Both were sent applications for rent, including income and credit checks.  A third-party verification database was used to process and assess the rentability of each applicant.  The Complainant was informed that there was another application in process for rental of the house.  Both applicants were considered at the same time.  The eventual renter had a slightly higher credit score, although both were more than adequate.  The Complainant’s third-party report suggested that the income may not be as high as stated in the application.  The Caucasian applicant got the house. The African American applicant filed a complaint with the Georgia Commission on Equal Opportunity, stating that she was denied based on race.
Fortunately, the Complaint was found to have “No Reasonable Cause” for a violation.  Evidence of equal treatment of the 2 applicants and the superior third-party report were important factors.
To prevail under the Georgia Statute, the Complainant must show that:
​To prevail under the Georgia Statute, the Complainant must show that:

1. The Complainant is a member of a protected class.
2. The Complainant applied for a unit and met the minimum qualifications to rent.
3. The Respondents, knowing the Complainant was a member of a protected class, passed over or rejected the application of the Complainant.
4. The unit remained available to similarly situated persons who are not members of the Complainant’s class.

In this case, the Complainant failed elements 3 and 4 above and a “No Reasonable Cause” letter was issued.