Commercial PropertyRealty Viewpoint: Fair Housing Groups Need To Be Regulated
Discrimination is an ugly thing, but so is unlimited power. When you think about it, prejudice is one of the manifestations of power.
And that"s why it"s wrong for the federal and state governments to give special powers to fair housing groups.
In trying to right the wrongs of housing discrimination, fair housing groups have been given seed money to target real estate professionals and landlords for violations. If they see one, they can shake the company or landlord down for cash, and threaten litigation if they don"t get a check fast.
Imagine Dog the Bounty Hunter negotiating a cash settlement with felons for their release, and you"ve got a pretty good idea of what happens.
If the targeted companies or individuals don"t pay whatever fines the fair housing group demands, the case moves forward at the state and/or federal level in a lawsuit. Damages are awarded to the fair housing group, not the person or persons who were actually harmed.
And the demands for settlements can be ridiculously steep -- millions for steering violations levied against Coldwell Banker Residential"s Chicago Gold Coast, an NRT company, and $4,000 against a California man named Dan Bader renting part of his house. He advertised in Craigslist that his 480-square foot unit was "perfect for 1 or 2 professionals," which the Fair Housing Council of Orange County felt discriminated against families with children.
What"s wrong with this picture is that the fair housing groups have unique powers to enforce fair housing laws. They can act as prosecutor, court and collection agency, but because they are funded by settlements, they have no incentive to issue warnings and accept apologies. They want settlements.
What that means is that other forms of arbitration or punishment won"t be used.
In Bader"s case, a few minutes of counseling could have easily solved the matter. In NRT"s case, the offending real estate agents could have been required to attend fair housing classes, or had their licenses to practice suspended or revoked.
Except that NRT was never told who the offending agents were, nor was the company supplied with any proof that the fair housing violations actually occurred.
And folks, there"s something wrong with that. Fair housing groups are either part of the governement or they aren"t. If they are vigilantes, they should not be given powers of prosecution or collection. If they are part of the government, they should be regulated.