Jacksonville Area Legal Aid, Inc. Fair Housing Unit. Fair Housing/Fair Lending

Transcription

1 Jacksonville Area Legal Aid, Inc. Fair Housing Unit Fair Housing/Fair Lending

2 WHAT IS THE FAIR HOUSING UNIT? The Fair Housing UNIT (FHU) was established to enforce the fair housing laws throughout Duval, Clay, Nassau, and Baker counties. There are no income requirements for FHU clients. FHU is committed to zealously advocate on behalf of victims of discrimination, and has a three-fold

3 approach to accomplishing this mission: 1. EDUCATION: The FHU educates housing consumers to recognize and report housing discrimination. If your group would like to receive a fair housing presentation, please call 904/ , ext INVESTIGATION: FHU often investigates cases of alleged discrimination through testing. Testing has proven to be a highly effective method of identifying unlawful housing discrimination. FHU also conducts ongoing research and monitoring efforts to determine the nature and extent of housing discrimination being practiced in our community. 3. ENFORCEMENT: FHU attorneys may negotiate a settlement for a client, represent a client in state or federal court, or may help a client file a case with a government agency, and advocate for him or her throughout the process. WHAT DOES THE LAW SAY? State and federal fair housing laws prohibit discrimination in housing based on: Race Color National Origin Familial Status (presence of minor children, expectant mothers or single fathers) Disability (Mental, Physical and developmental, also includes HIV related disabilities) Sex (including sexual harassment) Religion It is illegal for anyone to: THE LAW ALSO SAYS... threaten, coerce, intimidate or interfere with anyone exercising a right or assisting others to exercise their rights; and to advertise or make any statement that indicates a limitation or preference based on race, color, national origin, religion, sex, familial status or handicap. Many state statutes and local ordinances have been declared by the federal government to be Asubstantially equivalent@ to the federal Fair Housing Act. However, other federal, state and local laws can provide greater protection by prohibiting discrimination based on marital status, sexual preference, age, wealth, source of income, or other classifications. Therefore, it is not only important to check the federal law but also your state and local laws to see if your rights have been violated.

4 WHAT HOUSING IS COVERED? The state and federal Fair Housing Act covers most housing. The act exempts owner-occupied buildings with no more than four units, single family housing sold or rented without the use of a broker and housing operated by organizations that limit occupancy to members. Fair housing laws forbid discrimination in most housing related transactions, including: The refusal to rent, sell, or deal with a person who falls in one of the protected classes listed above; Discrimination in the terms or conditions of the sale, rental, occupancy, or in services or facilities; Falsely denying housing availability; Advertising in a discriminatory way; Discrimination in mortgage financing, sales, broker=s services, or homeowner=s insurance; Refusal to make a reasonable accommodation, or modifications for a person with a disability. WHEN SHOULD I CALL THE FAIR HOUSING UNIT? Housing discrimination is often subtle. The victim often feels discriminated against, but may have no definite proof of it. That is why a FHU investigation can be so helpful. Here are some examples of behavior which FHU could investigate: Race, Color, or National Origin Discrimination: Your phone messages are not returned. Your complex has a Ablack side@ and a Awhite side.@ You are told the house is rented, however you notice the house is still advertised. You are told one thing on the phone, but another when you meet with the owner or agent face to face. You are white, and you are told that you cannot have visitors of a different race or skin color in your home. Disability Discrimination You request a reasonable accommodation for your disability and your housing provider refuses to comply.

5 You request to build a ramp, or make some other modifications to the property to accommodate your disability at your own expense, but your landlord refuses. You are evicted by the housing provider either because of your disability or when the housing provider learns of your disability. Sex Discrimination You are sexually harassed by any member of the housing provider=s staff. Your landlord requests sexual favors in exchange for lower rent or to have repairs done. You are told Ano kids.@ Familial Status You are only told about units in the Akids area@ of a complex, or only shown units on the first floor when other units are available. You are told that your children do not have access to facilities, such as the swimming pool or playground. Religion Because of your religion, you are subjected to an increased security deposit. You are told only about areas of town with a synagogue or mosque. Christian symbols are used in advertising. WHAT FAIR HOUSING MEANS FOR PEOPLE WITH DISABILITIES If you or someone in your family has a disability, you might encounter housing discrimination when you apply for housing. You might face discrimination if a landlord refuses to make changes that would help you to avoid eviction or enable you to fully enjoy your housing. A person with a Ahandicap@ or Adisability@ is defined in the FHA as someone: (1) with a Aphysical or mental impairment that substantially limits one or more major life activities@; or (2) who has a record of having such an impairment; or

6 (3) who is regarded as having such an impairment. This definition also means that, even if you do not now have a disability, you are protected by the FHA if you are treated differently because you have a history of mental or physical disability or because someone believes you have a disability. Unfortunately, the current use of illegal drugs is not considered a Ahandicap@ under the federal Fair Housing Act. However, if you are currently in a rehabilitation program and/or are not a current user, then you can not be excluded from protection under the federal statute. Alcoholism, on the other hand, may be considered to be a Ahandicap@ and is subject to the protections under the Act. An exclusion can occur, however, if the person violates standards applicable to everyone. FAIR HOUSING LAWS AND THEIR RELEVANCE FOR THE MENTALLY, PHYSICALLY AND/OR DEVELOPMENTALLY DISABLED. WHAT ARE MY RIGHTS? Discrimination against the disabled is prohibited in most housing transactions. If you have a mental, physical, and/or developmental disability, you have the right to apply for housing without regard to your disability, enjoy your home without interference, and not be unjustly evicted. Here are some things you might not have known about your rights under the Fair Housing Act: Application process The landlord cannot impose a more stringent application criteria, security deposits, rental charges, or rental standards on tenants because they are disabled. A landlord may not ask a prospective tenant or resident whether he or she has a mental illness or another disability. It is also unlawful for a landlord to inquire about the severity of a tenant=s disability. A landlord is not entitled to see a tenant=s medical records. If a tenant is applying for housing suited for people with disabilities, the landlord may ask about the tenant=s disability to determine if he or she qualifies for the dwelling. Eviction Some circumstances may justify the rejection or the eviction of a tenant with a disability: (1) the person refuses or is unable to comply with tenancy rules that apply to all tenants, or (2) the person=s Atenancy would constitute a direct threat to the health or safety of other individuals or whose tenancy would result in substantial damage to the property of others.@ However, if a reasonable accommodation would eliminate the threat or enable the tenant to comply with the standard tenancy rules, the law requires the landlord to provide such an accommodation. CAN I REQUEST A REASONABLE ACCOMMODATION?

7 If you are a person with a disability, you may request a reasonable accommodation from a landlord to help you live independently and/or comply with the lease. In some cases, tenants may have to incur some costs. FHU recommends that if you wish to request an accommodation, do so in writing and keep a copy of the letter, (see example below.) Dear Landlord: (Date) I am a person with a disability and need a reasonable accommodation. I am requesting that you provide a reasonable accommodation (write what you wish your accommodation to be). I am entitled to this accommodation under the Fair Housing Act. Please contact me regarding your decision. Sincerely, (your name) (Make sure to sign and date the letter) When deciding whether to request an accommodation, make sure that it meets these requirements: The accommodation is REASONABLE. The landlord is not asked to provide non-housing services. The accommodation does not put undue burden on the landlord. The accommodation will specifically help the tenant because of the unique nature of the tenant=s disability If the tenant is facing a loss of housing, the benefit of continued housing for the tenant should outweigh the burdens and costs that the landlord must incur to make the accommodation. EXAMPLE: A woman with a psychiatric disability hears voices. To silence them, she hits walls with a broomstick and throws water at them. When the landlord starts eviction proceedings because of the damage, the tenant=s mother intervenes and asks the landlord to delay the eviction while she arranges for counseling and a community resource services program with her daughter=s case manager. You should call the Fair Housing UNIT if: you need assistance in pursuing your fair housing rights; if you would like a reasonable accommodation and want assistance requesting one; if you feel that your rights have been violated and want us to investigate your case; or if you simply have questions about your rights. Here are some examples of discriminatory behavior which we would investigate: A case manager is told by the manager of a complex that they won=t take Aprograms for the mentally ill because of their insurance.@

8 A landlord refuses to waive a no pet rule for a person with a mental illness who is dependent on a pet, and would be denied the opportunity to use and enjoy her home without a pet. A landlord refuses to change a policy that requires proof of prior employment or rental history, when a person with a disability does not have such a history because he has been in an institution. A landlord refuses to waive a no guests policy for a tenant with a disability who must employ a personal care attendant, therapist, nurse, etc. in order to live independently. A landlord or leasing agent tells a case manager who places the mentally ill in housing, AWe have nothing available,@ when in fact there are units available. A landlord charges disabled tenants a higher security deposit and/or more rent than non-disabled tenants. After a disabled tenant requests an accommodation, the landlord begins to harass or intimidate the tenant. SALES DISCRIMINATION: GET THE HOUSE YOU DESERVE WHAT IS SALES DISCRIMINATION? Steering Steering occurs when a real estate agent decides what area of town you should live in based on your race or ethnic origin. The most common form of steering occurs when a real estate agent steers African Americans towards sections of town which are predominantly African American or are experiencing racial turnover, and steers whites out of these areas. If an agent shows you property only in areas where many of the residents are the same race or ethnic background as you, or discourages you from looking at a particular neighborhood or subdivision, and you believe it is because of your race or ethnic origin, it may be illegal steering. Steering also occurs when a housing provider keeps the minorities in one section of the property, or has all persons with disabilities in one area. Falsely denying housing availability It is illegal for a person to lie to you regarding the availability of a housing. If you suspect that an agent has told you a property is sold, and it is not, it may be discrimination. Denying access to housing

9 It is illegal for a person to deny you access to a house, apartment, lot, mobile home, etc. because of your race or ethnic origin. Suspect discrimination if an agent cannot seem to make arrangements to show you a particular property, never returns your phone calls, won=t help you get a loan, or discourages you from making an offer on a house. Providing inferior service to minority customers It is illegal for a real estate agent to provide inferior service to minority customers. If you feel that you are receiving bad service from a real estate agent because of your race or ethnic origin, you may be encountering illegal discrimination. A qualified real estate agent can be a wonderful asset when it comes to finding the right home. Here are some guidelines which will help you as you work with your real estate agent. Select an agent you are comfortable with, and unless you have signed a buyers contract, you don=t have to stay with the same agent if you=re not happy. The agent should pre-qualify you. You and your agent should sit down and discuss what you can afford. Ask questions about anything that you=re not sure of. Being pre-qualified will help ensure that you are looking in the right price range, and that you=ll have a good chance of getting a loan to buy the house you choose. You can also get pre-qualified by most banks. Information about your choices. After you have a good idea of what you can afford, talk to the agent about what you=re looking for in a house. He or she will help you select houses which best meet your needs. Most agents can look in the Multiple Listing Service at homes in all neighborhoods in your price range. This will help you see what your money can buy in different neighborhoods. Drive through different neighborhoods - you may find some you haven=t considered before. The agent may help you prepare an offer when you have found the home you want. Your agent then brings your offer to the seller. If the seller doesn=t like your offer, he or she may counter offer. The agent may help you get a loan to buy the property. You should expect agents to have information about lenders and rates. He or she will most likely recommend places to look for a loan. FAIR HOUSING FINANCING YOUR HOME GENERAL INFORMATION ABOUT LENDING Banks, mortgage companies, credit unions, savings and loans - all make mortgage loans. They all have the same goal - to lend money to people

10 who are going to pay it back on time. They will all require proof of adequate income and a history of paying your bills, so that they can determine whether or not you are a good risk. They will need proof that the property you are buying is worth what you will be paying for it. But they should be able to tell you exactly what their standards are to approve a loan. The most important are: The percentage comparing your monthly income to the size of the monthly mortgage payment, including taxes and insurance (PIT). This is called the Afront end ratio.@ The percentage comparing your monthly income to all of your monthly debt, including the mortgage payment (the Aback end ratio@). Your credit history will be evaluated. The amount of money required for closing and how much they want you to have left over after purchasing the property. Each institution may offer many different loan Aproducts,@ with different requirements (such as how big a down payment you will have to make) for each one. AConventional loans usually have a lower rate, but require a larger down payment. Government-insured loans, such as FHA or VA loans, cost more over the long run, but may require only a minimal down payment. Before you apply WHAT TO EXPECT WHEN YOU APPLY FOR A LOAN A lender should be happy to talk with you about all the loan products they have available and the lending qualifications. Unless it becomes clear from the discussion that you do not qualify for any of their products (for instance, you may not have enough money for a down payment), they should be helpful and encouraging. They should give you information about how to apply for a loan, and what to bring with you when you come. Filling out the loan application Be prepared to be asked for a great deal of information about your finances - and be prepared to provide documentation. You will have to make a decision about what kind of loan to apply for - and you should be given enough information to make the decision for yourself. If the loan office automatically assumes that you want a particular kind, such as an FHA loan, that may indicate a problem. You may want to ask about other types of loans. The loan officer may help you fill out the application and may ask questions that will help you remember things you may have forgotten (like the fact that you have savings bonds or other assets). You will have an opportunity to explain issues that may present problems, such as slow or late payments on your credit history. If you have too many debts to qualify, the loan officer can find out how soon the debts can be paid off. Short term debt should not be counted. After you apply

11 Loan processing can take some time, and if interest rates are particularly low and the lender is very busy, it can take even longer. However, prequalification can be done in hours. Unless there are problems, however, you should hear about your loan application within two to six weeks. You may be asked to provide additional information during this time. If this is so, provide the information and keep a record of what you were asked for, and when you submitted the information. Include a letter stating what you are providing, why you are providing it, and when. Example: As you requested in your [date] letter, enclosed is a copy of my tax forms for If you are denied Find out why you were turned down, and write down everything you are told and who told you. Make sure you get a copy of your Aadverse action@ letter which the lender is required by law to send you within 20 days of the denial, giving all the reasons for which you were turned down. If credit is the problem, get a copy of your credit report. If the appraisal came in too low, get a copy of the report. The lender is required to give it to you, if you ask for it in writing. There are many legitimate reasons to turn someone down for a loan, like poor credit, or insufficient income, or too many debts. Not every denial or delay is discrimination. But if you think your credit is good or if you can explain a past credit problem, or if you are denied a loan for any reason OTHER than your income, debts, or credit history, be concerned. Take notes WHAT YOU SHOULD DO IF YOU THINK YOU HAVE BEEN DISCRIMINATED AGAINST. Try to get everything in writing, and call FHU. FHU will investigate the problem. We may send testers - people who pretend to want a loan - to the lending institution to see whether everyone is treated the same way. We=ll go over your qualifications and financial situation to see what the problem might be. We will explain how the law protects you and what you can do. We can investigate your case to make sure you are being treated fairly. We do not charge attorney=s fees for our services. If discrimination occurs Although every situation is different and we cannot guarantee outcomes, some possible results may be that: You may get the loan at a favorable rate You may be reimbursed, or compensated for the extra money you had to spend as a result of the discriminatory acts You may be compensated for all of the pain, suffering, and humiliation you and your family experienced as a result of the discrimination

12 The lender may be required to have fair lending training and change the way they do business The lender may have to make a special effort to make loans to the type of people who were denied loans illegally KNOW WHEN TO SUSPECT DISCRIMINATION Lenders who discourage you from even applying, no matter how nicely they put it. Negative statements or a denial based on the neighborhood, rather than the value of the house. A lender who doesn=t help you make your best case when you apply for a loan. Long delays and endless and repeated requests for additional information. Changes in the terms or conditions of the loan, such as raising the interest rate, requiring a larger down payment, or changing a 30 year loan to a 20 year loan. A refusal to make loans under a certain amount, such as the cost of your home. A low appraisal that talks about the neighborhood, or the age of the home. FAIR HOUSING INSURING YOUR HOME Anyone who buys a home and has it financed will be required to seek homeowner=s insurance. If your down payment is less than 20% of the loan, you will also have to pay mortgage insurance. Insurance is an important part of owning a home. You need to be protected in case anything happens to your house or possessions - and the bank or mortgage company that lends you the money to buy the house will insist on insurance to protect their own investment. Homeowner=s insurance can seem complicated, but if you know what to look for you can find a good policy. Become familiar with the terms and language in a policy, and shop around for the best coverage available. Unfortunately, housing discrimination is found even in the insurance business - especially if you live in certain neighborhoods. The biggest problems are cancellations, non-renewals, and differences in the cost and quality of coverage. The best type of coverage to have is one that not only covers the building and the contents of your home, but replaces the building and contents at today=s cost in case of a fire or other perils.

13 WHAT YOU SHOULD KNOW WHEN YOU BUY HOMEOWNER=S INSURANCE You don=t have to be an expert to select good coverage, but there are some things you should know. Although there are many variations among policies, there are two basic kinds of coverage: Replacement Value - insures your home for the cost of rebuilding it. Or, if you lose some of your covered possessions, under specific circumstances, the insurance company will pay for you to buy new ones. Market Value - insures your home for the price at which it would sell. If you have an older home, the market value is not likely to be enough to replace it. If something happens to one of your possessions, the insurance company will only pay for a used one of equal value. A good way to think about the difference is to imagine that you have a serious kitchen fire. A replacement policy will rebuild your kitchen and replace the damaged appliances with brand new ones. A market value policy might not even give you enough money to rebuild your kitchen, let alone pay to replace your appliances. A replacement value policy may cost more - but will provide greater protection if you have a claim. You should be able to choose which kind of policy you buy. Unfortunately, one way that insurance companies discriminate against certain people or certain neighborhoods is by offering only market value policies instead of replacement coverage. THE BEST WAY TO BUY HOMEOWNER=S INSURANCE Don=t rely on someone else to get insurance for you. You should call several different companies to get information before you decide which policy to buy. Ask the following questions: How much is the deductible? - You need to know the amount of the deductible - how much you will have to pay each time you have a claim. The higher the deductible, the lower the cost of the policy. How much does the policy cost? - This should depend on whether the policy is a replacement or marker value policy, the amount of the deductible, and extra coverage which the policy has. What is included in the coverage? - What is not included? (For example, water damage may require a separate insurance coverage.) Market or replacement value? How much coverage is there for your personal possessions? Are there extra features? Be prepared to tell the insurance company: Where the house is located; What kind of construction (such as brick or wood);

14 When the house was built; How much the house is worth; and How close are you to a fire station. After each conversation, write down the date and time of your call, who you spoke to, what you were asked, and what you were told. If no one returns your calls, write that down too. KNOW WHEN TO SUSPECT DISCRIMINATION One way in which insurance companies avoid doing business with certain people, or people living in certain neighborhoods, is by not returning their calls. Another form of discrimination found in the insurance industry is charging some people higher premiums for insurance. Sometimes it can be legitimate to charge different premiums if one property carries a higher risk than another. But, insurance companies may sometimes make assumptions that may not be true. They assume that some neighborhoods carry a higher risk than others. They may find all kinds of ways to avoid selling insurance in certain neighborhoods. Some examples which may be violations of the Fair Housing Act are when: An insurance company cancels the policy the first time you have a claim, or simply does not renew the policy. They may refuse to give you replacement coverage. They may charge so much that you won=t buy their insurance or you will buy less coverage. They may try to discourage you by refusing to give you a quote without inspecting the property. They may refuse to insure houses with flat roofs, or with other characteristics that are only found in certain neighborhoods. They may refuse to insure houses worth less than certain amounts, like for example $40,000. They may say your house is too old to insure, even if it is in good condition. They may insist on running a credit check before they issue a policy. They may simply tell you they don=t insure properties in YOUR neighborhood and refer you to another company.

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16 NOTES

17 JACKSONVILLE AREA LEGAL AID, INC. serves Duval, Clay, Nassau, and Baker Counties through the Jacksonville downtown office.

18 Jacksonville Area Legal Aid, Inc. 126 West Adams Street Jacksonville, Florida (904) Call FHU=s hotline to report housing discrimination or to request a fair housing presentation! The information provided in this brochure is not a substitute for legal advice. The laws described here may change without notice.