Fair Housing Act
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The City of Columbia actively seeks to affirmatively further fair housing. The City not only has a strong commitment and actively seeks to affirmatively further fair housing, and it is a requirement for participating in US Department of Housing and Urban Development’s (HUD) many housing and community development programs.
The Fair Housing Act specifies that the HUD funded recipients shall administer programs and activities relating to housing and urban development in a manner that affirmatively furthers the policies outlined in Section 808 (e) 5.
Housing and Community Development Act of1974, as amended, is the dominant statute for the Community Development Block Grant (CDBG) program. It requires that each federal grantee certify to HUD's satisfaction that (1) the awarded grant will be carried out and administered according to the Fair Housing Act, and (2) the grantee will work diligently to affirmatively further fair housing. This certification to HUD may be implemented through the Consolidated Plan process.
Under the Consolidated Plan, HUD funded recipients are required to: (1) examine and attempt to alleviate housing discrimination within their jurisdiction; (2)promote fair housing choice for all persons; (3) provide opportunities for all persons to reside in any given housing development, regardless of race, color,religion, sex, disability, familial status, or national origin; (4) promote housing that is accessible to and usable by persons with disabilities; (5) and comply with the non-discrimination requirements of the Fair Housing Act.
Other Resources on the Fair Housing Act
- HUD Fair Housing/Equal Opportunity Manual, to view click here (pdf)
- HUD Fair Housing Brochure “Are You a Victim: Know your Rights”, to view click here (pdf)
To learn more about Fair Housing and Fair Lending visit HUD’s website at http://www.hud.gov/fairhousing.com.
Basic Facts about the Fair Housing Act
What Housing Is Covered?
The Fair Housing Act covers most housing. In some circumstances, 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 and private clubs that limit occupancy to members.
What Is Prohibited?
- In the Sale and Rental of Housing:No one may take any of the following actions based on race, color, national origin, religion, sex, familial status or handicap:
- Refuse to rent or sell housing
- Refuse to negotiate for housing
- Set different terms, conditions or privileges for sale or rental of a dwelling
- Provide different housing services or facilities
- Falsely deny that housing is available for inspection, sale, or rental
- For profit, persuade owners to sell or rent (blockbusting) or
- Deny anyone access to or membership in a facility or service (such as a multiple listing service) related to the sale or rental of housing.
In Mortgage Lending: No one may take any of the following actions based on race, color, national origin, religion,sex, familial status or handicap (disability):
- Refuse to make a mortgage loan
- Refuse to provide information regarding loans
- Impose different terms or conditions on a loan, such as different interest rates, points, or fees
- Discriminate in appraising property
- Refuse to purchase a loan or
- Set different terms or conditions for purchasing a loan.
In Addition: It is illegal for anyone to:
Threaten,coerce, intimidate or interfere with anyone exercising a fair housing right or assisting others who exercise that right.
Advertise or make any statement that indicates a limitation or preference based on race,color, national origin, religion, sex, familial status, or handicap. This prohibition against discriminatory advertising applies to single-family and owner-occupied housing that is otherwise exempt from the Fair Housing Act.
Fair Lending
Discrimination
in mortgage lending is prohibited by the federal Fair
Housing Act and HUD's Office of Fair Housing and Equal Opportunity actively
enforces those provisions of the law. The Fair Housing Act makes it unlawful to
engage in the following practices based on race, color, national origin,
religion, sex, familial status or handicap (disability):
- Refuse
to make a mortgage loan
- Refuse
to provide information regarding loans
- Impose
different terms or conditions on a loan, such as different interest rates,
points, or fees
- Discriminate
in appraising property
- Refuse
to purchase a loan or set different terms or conditions for purchasing a loan
Filing a Complaint
If
you have experienced any one of the above actions, you may be the victim of
discrimination. Recognizing the signs of lending discrimination is the first
step in filing a complaint. HUD investigates your complaints at no cost to you.
If you believe you have experienced lending discrimination, visit our housing discrimination
complaint website to learn more about the complaint process.
HUD Fair Lending Studies
Pre-application
inquiries about mortgage lending financing options represent a critical phase
in the home buying process. If potential home buyers cannot obtain full and fair
access to information about mortgage financing, they may give up on their
pursuit of home ownership, their housing search may be restricted, or they may
be unable to negotiate the most favorable loan terms. HUD has conducted a
number of studies to determine whether minority home buyers receive the same
treatment and information as whites during the mortgage lending process. Read
more on mortgage
lending discrimination studies .
Subprime Lending
Sub prime
loans play a significant role in today's mortgage lending market, making
home ownership possible for many families who have blemished credit histories or
who otherwise fail to qualify for prime, conventional loans. A recent HUD
analysis, based on HMDA and related data, shows that the number of home
purchase sub prime applications increased from 327,644 in 1997 to 783,921 in
2000.
While the sub prime mortgage market serves a legitimate role, these loans tend
to cost more and sometimes have less advantageous terms than prime market
loans. Additionally, sub prime lenders are largely unregulated by the federal
government. Data shows blacks are much more likely than whites to get a
sub prime loan, and many of the borrowers who take out these loans could qualify
for loans with better rates and terms. As such, many have expressed fair
lending concerns about the sub prime market. Read more on Sub prime Lending .
Predatory Lending
Some
lenders, often referred to as predatory lenders, saddle borrowers with loans
that come with outrageous terms and conditions, often through deception.
Elderly women and minorities frequently report that they have been targeted, or
preyed upon, by these lenders. The typical predatory loan is: (1) in excess of
those available to similarly situated borrowers from other lenders elsewhere in
the lending market, (2) not justified by the creditworthiness of the borrower
or the risk of loss, and (3) secured by the borrower's home. HUD is working
hard to fight against predatory lending .
Minority Homeownership
HUD is committed to increasing home ownership
opportunities for all Americans. HUD is engaged in a special effort to boost
the minority home ownership rate since the rate for black and Hispanic Americans
lags behind that of others. Read more about HUD's efforts to
Increase
Minority Home ownership .
