August 2008

Central Texas newspapers hit with Fair Housing complaints

Do your classifieds comply with FHA? Describe the property not the person

SIDEBARS:
U.S. Housing & Urban Development FHA Word & Phrase caution list (PDF)
HUD FHA Publisher's notice & logos

APARTMENT FOR RENT: No children. Great for singles. Mature renters only. Jewish community center nearby. 1-2 persons.

Are any of these phrases or similar words in your newspaper’s real estate classifieds? Then you may be setting yourself up for a Fair Housing Act complaint that could cost you thousands of dollars.

Local tenant councils and housing authorities scan newspaper classifieds to find problem language, and one council recently has been active in Central Texas where several newspapers received notice that some of their advertisements may have violated the FHA.

Problem Ads

The Gatesville Messenger and Fredericksburg Standard Radio Post are two of the newspapers that received complaint letters from the Austin Tenants’ Council about ads they published in April or May. The complaints against both newspapers are pending.

The Gatesville ads read:

“1 BR efficiency apartment. Mature renters only. $400/month single occupancy or $500/month double occupancy. All utilities paid, no pets, deposit required, Available 4/15.”

“Large 1-1 great for single, non-smoker, no pets, paid water, $350/mo., $350 deposit.”

“Upstairs 1 bedroom apt., very nice, all electric, no children or pets, stove, A/C, $235/month plus deposit. Available soon!”

The problem words in the Gatesville ads are “mature,” which appears to state a preference for older people, and “great for single” and “no children,” both of which appear to state a preference of a particular familial status.

The Fredericksburg ads read:

“House furnished or unfurnished, 2 bedrooms, large store room, washer, dryer, wood floors, garage, large fenced yard, 1-2 persons, near hospital. $775/mo. $500 deposit.”

“For rent. A very clean 2 bedroom apartment located in a respectable neighborhood, CH/A, washer/dryer hook-up. Kitchen appliance. 2-3 persons.”

“For rent: 2 bedroom, 1 bath with large enclosed porch. For 1-2 people. In quiet area, on edge of town. Some utilities furnished. 1 year lease.”

The problem in all three Fredericksburg ads is that they appear to state a preference for number of tenants, which is not allowed under FHA familial status protections. The second ad also could contain a problem word in describing the neighborhood as “respectable.”

FHA rules

Newspapers are subject to the FHA because they are the publisher of the information.

The FHA makes it illegal “to make, print, or publish, or cause to be made, printed, or published, any notice, statement, or advertisement, with respect to the sale or rental of a dwelling, that indicates any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or an intention to make any such preference, limitation, or discrimination.”

Thurman Miles, deputy director of the U.S. Housing and Urban Development’s Fort Worth regional office, said all housing advertisements must avoid discrimination in those seven protected classes.

Complaint Process

HUD takes FHA discrimination complaints very seriously. Miles said the agency investigates every complaint that is made to his office, which covers five states.

In complaints involving newspaper ads, HUD looks at the language used to determine whether a reasonable person would think the ad is discriminating, he said.

When an investigation finds problem language, HUD works with both parties to find an amenable solution. Many complaints result in voluntary conciliation where the publisher might agree to pay a set amount to the individual or agency making the complaint. In many cases good-faith restitution, such as public service announcements or staff training, also may be negotiated, Miles said.

Did you know human models in housing ads could violate FHA?

From HUD Fair Housing Advertising Part 109.25

(c) Selective use of human models when conducting an advertising campaign.  Selective advertising may involve an advertising campaign using human models primarily in media that cater to one racial or national origin segment of the population without a complementary advertising campaign that is directed at other groups. Another example may involve use of racially mixed models by a developer to advertise one development and not others. Similar care must be exercised in advertising in publications or other media directed at one particular sex, or at persons without children. Such selective advertising may involve the use of human models of members of only one sex, or of adults only, in displays, photographs or drawings to indicate preferences for one sex or the other, or for adults to the exclusion of children.

HUD does not levy fines for FHA violations, Miles said. If the parties do not reach an agreement, the complainant might file a lawsuit and then the courts would decide whether to award any monetary damages.

But even negotiated FHA complaints can cost thousands of dollars.

In 2004 the West Plains Daily Quill in Missouri paid $1,500 on a charge of discrimination in a rental property classified ad. In 2002, Georgetown News Inc. in Kentucky paid $1,500 to settle a familial status complaint stemming from an ad in one of its shoppers.

How to Avoid Problems

To avoid FHA complaints, Miles suggested that newspapers screen every real estate ad before publication, and edit all ads to ensure each ad only describes the property and not the person.

“Sometimes people get creative in describing the people they want and not the property,” Miles said.

Newspapers should not allow advertisers to state a preference for any type of tenant or buyer, even if the language is unintentional. Newspapers should refuse an ad if the advertiser insists on stating a preference; a few dollars for a line ad is not worth potential thousands later.

Miles also cautioned newspapers about stating the number of occupants for a house, such as the Fredericksburg examples. He said newspapers instead should state the number of bedrooms and square footage — again describe the property not the people.

Newspapers that use human models in real estate ads also need to be careful not to use what HUD calls “selective advertising” (see sidebar.)

HUD has an advertising word caution list (see sidebar) that describes specific language that should be avoided. This list should be clipped and posted in multiple places in every newspaper’s advertising department. Make copies and attach the list to the wall or to the desk where classified reps take calls. Post them at the typesetter’s workstation. If other staff members take classifieds, tape a copy of the list to their desks as well.

When a new person joins the staff, make sure that employee knows about the list and follows it.

For more FHA info log onto www.hud.gov/groups/fairhousing.cfm.

FHA Advertising Guidelines

From section 109 Fair Housing Advertising

Newspapers should publish a “Publisher’s Notice” at the beginning of each real estate section.

An example of the publisher’s notice from HUD’s Web site reads:

“All real estate advertised herein is subject to the Federal Fair Housing Act, which makes it illegal to advertise ‘any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation, or discrimination.’

“We will not knowingly accept any advertising for real estate which is in violation of the law. All persons are hereby informed that all dwellings advertised are available on an equal opportunity basis.”

Use of Equal Housing Opportunity logotype, statement, or slogan. Newspapers also should publish an Equal Housing Opportunity logo, statement or slogan.

All advertising of residential real estate for sale, rent, or financing should contain an equal housing opportunity logotype, statement, or slogan as a means of educating the homeseeking public that the property is available to all persons regardless of race, color, religion, sex, handicap, familial status, or national origin.

• The choice of logotype, statement or slogan depends on the space advertising, and on the size of the advertisement. (see table above)

• In any other advertisements, if other logotypes are used in the advertisement, then the Equal Housing Opportunity logo should be of a size at least equal to the largest of the other logotypes; if no other logotypes are used, then the type should be bold display face which is clearly visible.

• Alternatively, when no other logotypes are used, 3 to 5 percent of an advertisement may be devoted to a statement of the equal housing opportunity policy.

• In space advertising that is less than 4 column inches (one column 4 inches long or two columns 2 inches long) of a page in size, the Equal Housing Opportunity slogan should be used. Such advertisements may be grouped with other advertisements under a caption which states that the housing is available to all without regard to race, color, religion, sex, handicap, familial status,  or national origin.

• Equal Housing Opportunity statement example: “We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.

• Equal Housing Opportunity Slogan: “Equal Housing Opportunity.”

How to get the logo: The logo is available in various sizes and formats on the FHA Web site at www.hud.gov/groups/fairhousing.cfm.