Housing Counselors and Fair Housing Law in Maryland October 9, 2014

1. Housing Counselors and Fair Housing Law in Maryland October 9, 2014 Robert J. StruppExecutive DirectorBaltimore Neighborhoods, INC.2530 N. Charles St, Suite 200Baltimore, MD 21218rstrupp@bni-maryland.orgwww.bni-maryland.org

2. Mission and Vision • Justice in Housing • Integrated Communities • Viable Neighborhoods

3. History • Since 1959 • Fair Housing enforcement • Tenant-Landlord Hotline • Impartial • 20k Inquires

4. Tenant-Landlord Program

5. Tenant-Landlord Program • Improves relationships between tenants and landlords • Information on Maryland law • No charge • Hotline operates 9 a.m. to 5 p.m., weekdays • Receives 20 thousand plus calls per year • Trained counselors

6. Tenant-Landlord Program • Materials for sale: • Leases • Rental Applications • Guide to Local, State, and Federal Tenant-Landlords Laws governing tenant-landlord relations

7. Fair Housing Program

8. Fair Housing History and Law • Dodd Frank Act provides that Housing Counselors must become proficient in six areas: • Financial management • Property maintenance • Responsibilities of homeownership and tenancy • Fair housing laws and requirements • Housing affordability • How to prevent and respond to, rental and mortgage delinquency and avoid eviction and mortgage default.

9. Fair Housing History and Law • Introduce and update counselors with information and skills about the federal Fair Housing Act and local fair housing laws about discrimination regarding renting, lending, appraising, insuring and buying/selling of homes.

10. Fair Housing History and Law Updated May 16, 2014 HUD Office of Housing Counseling Frequently Asked Questions Housing Counselor Certification Proposed Rule: • Where can I find the Proposed Rule? https://federalregister.gov/a/2013-22229 2. How do I submit comments on the Proposed Rule? Comment period closed. Comments being reviewed and responses prepared for Final Rule.

11. Fair Housing History and Law FAQs-Housing Counselor Certification 3. Will counselors be able to substitute prior education and/or certification from other organizations instead of passing certification examination? HUD cannot make this change by rulemaking. Dodd-Frank deleted HUD’s discretion to certify counseling agencies or individual counselors. Statute now requires all individuals that provide counseling for HUD Programs be HUD-certified by passing a new written exam showing competency in each of the 6 areas. HUD cannot consider exemptions to individual certification requirement

12. Fair Housing History and Law FAQs-Housing Counselor Certification 4.Will I have to pass each module on the exam? You must pass the exam demonstrating proficiency in all six Dodd-Frank competency areas. 5. When will the exam be available? The Exam should be available at the time HUD publishes the Final Rule revising the regulations. 24 C.F.R. Part 214. 6.When will I have to take the exam? Within one year from the date of publication of Final Rule to be eligible to continue providing housing counseling related to HUD programs.

13. Fair Housing History and Law FAQs-Housing Counselor Certification 7. Will I need to take the exam more than one time? The Proposed Rule requires that an individual successfully pass the HUD Certification only once. 8. If someone fails, or does not take the exam, can he or she continue to provide counseling services? Counseling in connection with a HUD program must be provided by certified housing counselors. Noncertified counselors may be employed at an approved agency and assist certified counselors. Non-certified counselors can join a certified counselor in a counseling session, and it must be clear to client that certified counselor is the housing counselor.

14. Fair Housing History and Law • FAQs-Housing Counselor Certification 9. Can HUD limit the number of times a counselor can take the certification exam? Currently, HUD is not limiting the number of times a counselor may sit for the exam. 10. How can I prepare for the examination now? Housing counselors are encouraged to educate themselves on the Dodd-Frank Act competency topics. National and regional training providers may offer trainining. Classes will not be specifically designed to prepare for the Counselor Certification Exam but will educate on the six competency topics.

15. Fair Housing History and Law FAQs-Housing Counselor Certification 11. Will I have to recertify similar to HECM requirements? Will there be an expiration date for the certification? Not expiration date on the certification. Under the Proposed Rule, counselors will not have to recertify. 12. Will HECM counselors have to pass the Certification Exam as well as the HECM exam? Yes

16. Fair Housing History and Law FAQs-Housing Counselor Certification 13.Can a person take the exam without being employed by a housing counseling agency? Under the statute, all counselors providing housing counseling in connection with HUD programs must be certified. To become certified a counselor must successfully pass the examination and, under HUD’s proposed rule, be employed by a HUD participating counseling agency. OHC is considering allowing individuals to take the HUD Certification Exam but elect not to become certified.

17. Fair Housing History and Law FAQs-Housing Counselor Certification 14. Does my agency have to offer services for all six competency areas? We do not offer rental counseling, for example. Dodd-Frank only requires that HUD-approved counselors demonstrate competency in six areas. HUD approved agencies and counselors may choose to specialize as reflected in their official counseling work plans. Counselors are required by (Handbook 7610.1, Rev.5 Sections 3-5(E) and 3-12), to make a knowledgeable referral to an agency that provides type of counseling that clients need and note referral in the client's file.

18. Fair Housing History and Law FAQs-Housing Counselor Certification 15. Are managers required to become certified under the proposed rule? Only staff that provides housing counseling must be certified. 16. How will HUD implement the certification process? Office of Housing Counseling (OHC) must contract with one entity to develop training and certification testing HUD awarded a contract to Bixal Solutions, Inc. to develop certification training, examination, and host website..

19. Fair Housing History and Law FAQs-Housing Counselor Certification 17. Will the certification examination be available after the deadline for compliance? The certification examination will continue to be available after the deadline for counselors that failed the examination and for new counselors to take the examination.

20. Fair Housing History and Law • Declaration of Independence • “We hold these truths to be self- evident that all men are created equal…” • U.S. Constitution Article 1 Section 2 • “Representatives and direct Taxes shall be… determined by adding to the whole Number of free persons, including those bound to Service for a Term of Years, and excluding Indians not taxed, three-fifths of all other Persons”

21. Fair Housing History and Law • 13th Amendment • Abolished slavery, but did not give blacks equality • Civil Rights Act of 1866 • “All citizens of the United States shall have the same right, in every State and Territory, as is enjoyed by white citizens thereof to inherit, purchase, lease, sell, hold, and convey real and personal property.”

22. Fair Housing History and Law • 14th Amendment 1868 • “All persons born or naturalized in the US…are citizens…nor shall any State deprive any person of life, liberty, or property, without due process of law, nor deny any person…the equal protection of the laws” • 19th Amendment 1920 • “The right of citizens to vote shall not be denied or abridged…on account of sex”

23. Fair Housing History and Law • Civil Rights Act of 1964- Title VII • Prohibits employment discrimination based on race, sex, national origin, or religion • Age Discrimination in Employment Act of 1967 • (Pub. L. 90-202) (ADEA), as amended. ADEA prohibits employment discrimination against persons 40 years of age or older

24. Fair Housing History and Law • Civil Rights Act of 1968 • Also known as the Fair Housing Act.Prohibits discrimination based on race, color, national origin, religion, and sex in the rental, sale, and financing of a dwelling. • Amended in 1988 to include physical and mental disabilities and families with children. • Architectural Barriers Act of 1968 • Requires accessibility for disabled in buildings and facilities financed with federal funds

25. Fair Housing • Based on Current Law • What is “fair housing”? • Fair housing aims to eliminate discrimination in any housing related activities. • The belief is that every person has the right to own or rent without being discriminated against based on the following: • Race, Color, • National Origin, Sex, • Religion, Familial Status, and Disability

26. Fair Housing • State of Maryland Protections • Marital Status, Sexual Orientation, Gender Identity • Local • Annapolis: Source of Income • Baltimore City: Age, Ancestry, Gender Identity • Baltimore County: Age, Creed (Belief) • Frederick City: Source of Income • Harford County: Age, Creed, Occupation, Personal Appearance, Political Opinion • Howard County: Age, Creed, Occupation, Personal Appearance, Political Opinion, Source of Income • Prince George’s County: Age, Occupation, Personal Appearance, Political Opinion

27. Fair Housing • Maryland Commission on Civil Rights (mccr.maryland.gov) • Housing Discrimination • Pursuant to Article, § 20-702, Annotated Code of Maryland, it is the policy of the State of Maryland to provide for fair housing throughout the State, to all its citizens, regardless of race, gender/sex, ethnicity, national origin, religion, color, sexual orientation, physical or mental disability, marital status, or familial status

28. Fair Housing • Illegal to: • Refuse to rent a dwelling to any qualified buyer or renter; • Use discriminatory terms and conditions in selling or renting; • Set terms and conditions of home loans in such a way as to discriminate; Use discriminatory notices or advertisements indicating preference or discriminatory limitations; • Say a dwelling is not available when, in fact, it is available; • Attempt to steer persons into or away from neighborhoods or apartment due to being members of a protected class; • Treat a person differently because of race, disability, familial status (parent or legal custodian with children, pregnant), religion, sex, marital status, national origin or sexual orientation; • Request information about birth control and/or family planning practices; Refuse to consider both applicants' incomes when seeking to buy or rent; Commit acts of prejudice, violence, harassment, intimidation, or abuse directed against families, individuals or their property

29. Fair Housing • It is against the law to: • Refuse to permit, or at the expense of the renter, reasonable house modifications necessary for the daily life of a person with a mental or physical disability; • Refuse to reasonably accommodate or adjust rules, policies, services or practices that hamper the use of an apartment, condominium, or house by a person with a physical or mental disability • Have multi-family housing that is not accessible to people with disabilities... required to have accessible units and access routes (wide doors and hallways), accessible public and common areas, and • management must provide for effective communication as needed by a disabled person. • Harassment on the basis of a protected class (above, such as sexual harassment), and retaliation for filing a complaint or being involved in the investigation are both prohibited under law and enforced by MCCR.

30. Fair Housing • HUD Fair Housing and Equal Opportunity-Mission: • To create equal housing opportunities for all persons living in America by administering laws that prohibit discrimination in housing on the basis of race, color, religion, sex, national origin, disability, and familial status. • Particular activities carried out by the Office of Fair Housing and Equal Opportunity include implementing and enforcing the Fair Housing Act and other civil rights laws, including Title VI of the Civil Rights Act of 1964, Section 109 of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, Title II of the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Title IX of the Education • Amendments Act of 1972, and the Architectural Barriers Act of 1968. • In addition, we: manage the Fair Housing Assistance Program, administer the award and management of Fair Housing Initiatives Program grant propose fair housing legislation; work with other government agencies on fair housing issues

31. Fair Housing • HUD Fair Housing and Equal Opportunity-Mission: • manage Fair Housing Assistance Program, administer award and management of Fair Housing Initiatives Program grants, propose fair housing legislation; work with other government agencies on fair housing issues; review and comment on Departmental clearances of proposed rules, handbooks, legislation, draft reports, and notices of funding availability for fair housing considerations; interpret policy, process complaints, perform compliance reviews and offer technical assistance to local housing authorities and community development agencies conduct oversight of Government-Sponsored Enterprises, Fannie Mae and Freddie Mac, to ensure consistency with Fair Housing Act and fair housing provisions of Federal Housing Enterprises Financial Safety and Soundness Act; and work with private industry, fair-housing and community advocates on the promotion of voluntary fair housing compliance.

32. Fair Housing Complaint

33. Fair Housing • . U.S. Bank Accused of Racial DiscriminationCivil Rights Groups file Federal Complaint over Neglected Foreclosures — The National Fair Housing Alliance and member organizations announced new evidence of housing discrimination by U.S. Bank. The civil rights groups allege that U.S. Bank fails to maintain and market bank-owned foreclosures (REO properties) in African American and Latino neighborhoods to the same standard as in White neighborhoods. • Report: Banks and Fannie Mae Vendors Discriminate Against Communities of Color by Failing to Maintain and Market Foreclosures • Zip Code Inequality: Discrimination by Banks in the Maintenance of Foreclosed Homes in Neighborhoods of Color • “Bank Settlement” Relief?

34. Fair Housing • . HUD ANNOUNCES $5 MILLION WELLS FARGO SETTLEMENT AFTERCOMPLAINTS OF DISCRIMINATION AGAINST WOMEN ON MATERNITY LEAVE OR PREGNANT-Settlementresolving allegations that lender discriminated against women who were pregnant, had recently given birth, and on maternity leave. HUD has conducted intensive campaign to end maternity leave-related lending discrimination. Since 2010, 190 maternity leave discrimination complaints have been filed with HUD, resulting in more than 40 settlements for a total of nearly $1.5 million, prior to today’s settlement. • HUD REACHES SETTLEMENT WITH MIDLAND STATES BANCORPRESOLVING ALLEGATIONS OF REDLINING BY THE BANK -Conciliation Agreement with Midland States Bancorp, resolving allegations that bank avoided doing business in predominantly African American and Hispanic neighborhoods in St. Louis, Missouri and northern Illinois. • HUD AND MORTGAGE COMPANY SETTLE COMPLAINT ALLEGING DISCRIMINATION AGAINST APPLICANTS COLLECTING DISABILITY INCOME-Freedom Mortgage Corporation will pay $104,000 to settle allegations that it discriminated against loan applicants with disabilities by requiring them to provide medical or other documentation regarding disability. HUD alleging underwriting policies and practices subjected persons with disabilities to different terms and conditions .

35. Fair Housing • HUD Press Releases > 2013 > HUDNo.13-138 HUD CHARGES WEST VIRGINIA • MOBILE HOME PARK OWNERS WITH DISCRIMINATION FOR DENYING ASSISTANCE ANIMAL TO RESIDENT • Mobile home community ignored multiple reasonable accommodations requests and attempted to evict him. • Fair Housing Act requires housing providers to make reasonable accommodations in rules, policies, practices or services when needed to provide persons with disabilities equal opportunity to use or enjoy a dwelling. • According to HUD's charge, resident has difficulty sleeping and experiences severe anxiety as a result of a 2009 home invasion asked WHMC to waive "no pets" policy and allow him to keep an emotional support dog that assists with coping with his disability resident submitted a doctor's note attesting to his need for the animal, WHMC declined his requests and attempted to evict him. • HUD's charge will be heard by a United States Administrative Law Judge unless any party to the charge elects to have the case heard in federal district court. If an administrative law judge finds after a hearing that discrimination occurred, he may award damages to aggrieved persons for the harm caused by the discrimination. The judge may also order injunctive relief and other equitable relief to deter further discrimination, as well as payment of attorney fees. In addition, the judge may impose fines in order to vindicate the public interest. If the matter is decided in federal court, the judge may also award punitive damages.

36. Fair Housing • In a letter to Complainant dated July 7,2012, Respondent wrote: • "With the events of the recent months, and your addition to your family coming, The Trust is not renewing your monthly lease effective next month. The apartment is too small and not suitable. This will give you the opportunity to find a place more suitable for your growing family prior to the new arrival." • In an Eviction Notice dated July 10,2012, Respondent informed Complainant that her lease would not be renewed. As the reason for eviction, Respondent wrote: 'Too many people for Apartment." • FAIR HOUSING ACT VIOLATIONS • Respondent violated Section 804(a) of the Act by making housing unavailable when he evictedComplainants and their two children because Complainant was pregnant. 42 U.S.C. §3604(a);24 C.F.R.§ 100.60(a).Respondent violated Section 804(b) of the Act by imposing different terms and conditions by evicting Complainants and their two children because Complainant was pregnant. 42 U.S.C.§ 3604(b); 24 C.F.R.§100.65(a). • Respondent's written statements to Complainant on July 7,2012, July 10,2012, and August 25,2012, violated Section 804(c) of the Act by indicating "afl preference, limitation, or discrimination based on familial status... " 42 U.S.C. 3604(c); 24 C.F.R. § 100.75(a).As a result of Respondent's actions, Complainants and their two children suffered damages including, but not limited to, emotional distress, loss of a housingopportunity, and inconvenience.

37. Fair Housing on Residential Leases • HUD No. 12-160 • HUD CHARGES PROPERTY OWNER WITH DISCRIMINATING AGAINST SINGLE MOTHER AND DAUGHTER • WASHINGTON - The U.S. Department of Housing and Urban Development (HUD)announced today that it is charging a landlord with violating the Fair Housing Act for allegedly refusing to rent an apartment to a woman and her young daughter. HUD's charge alleges that the owner refused to rent to the family because he preferred not to rent to families with children. • According to HUD's charge, the woman contacted the owner after seeing an advertisement in a local newspaper for a one-bedroom apartment. When she told the owner that the unit was for her and her one-year-old daughter, the owner allegedly said that he had rented to families before and it "just doesn't work." During HUD's investigation, the owner admitted that he told the woman he preferred to rent the apartment to adults, not families with children. Two weeks after turning the woman down, the owner rented the apartment to an applicant without minor children. The lease included a provision limiting the unit to one person only.

38. Fair Housing on Residential Leases • HUD No. 12-160 • HUD, REAL ESTATE GROUP SETTLE CLAIM THAT GROUP DISCRIMINATED AGAINST BURMESE FAMILIES • Settlement ends alleged policy of denying rental housing to refugees • HUD announced today that it has reached a Conciliation Agreement with the Lancaster, PA-based Group that will end an alleged policy of refusing to rent to Burmese refugee families. The agreement is the result of a complaint HUD initiated against the Group after staff allegedly failed to renew the leases of three Burmese families because of national origin, and made statements to various people that the group would no longer accept rental referrals for refugees that were referred by Lutheran Refugee Services. The company denied the allegation. • Three Burmese families were notified by the company that their leases were not being renewed because of alleged lease violations. HUD's investigation showed that only the Burmese tenants received lease non-renewal letters, even though the company had similar concerns about other tenants. In addition, staff at the company told Lutheran Children and Family Services representatives and HUD investigators that the company would no longer rent to refugees. Under terms of the agreement, the company will donate $12,000 to Lutheran Refugee Services, provide fair housing training for all its employees, and include the phrase "Equal Housing Opportunity" or fair housing logo in all newspaper and other rental advertisements.

39. HUD and MCCR • 2013 Top 3 Protected Classes are Disability, Familial Status, and Race

40. Renters and Owners

41. Rentals Average rental prices for one and two bedroom apartments within the Washington-Baltimore DC-MD-VA-WV CMSA area as reported by renters on apartmentratings.com

42. Renters • D.C. Rental Affordability • Min. Wage Worker Has to Toil 132 Hours Per Week to Afford 2-Bedroom Apartment • National Low-Income Housing Coalition has found that someone making minimum wage in D.C. would have to work just about every waking hour in a week to afford average D.C. rent. D.C. • workers have to make at least $27.15 per hour so to afford the average two-bedroom rental cost of $1,412 while keeping something close to a 40-hour work week.

43. Renters

44. Does Renters Warehouse Comply with the Fair Housing Act? • The Renters Warehouse website list the following tenant criteria: • “All applicants must be employed. The employment be verifiable” • Violation of the Fair Housing Act • “We do not discriminate on the basis of affectionate orientation” • Not a recognized protected class • HUD requires equal housing logo on advertising

45. Does Renters Warehouse Comply with the Fair Housing Act? • Fair Housing Act prohibits Discrimination based on 7 protected categories • Race, color, national origin, religion, sex, disability and familial status (including children under 18 living with parents or legal custodians; pregnant women and people securing custody of children under 18). • Some local equivalents to the federal fair housing laws include source of income.

46. Questions???

47. Contact Us! Baltimore Neighborhoods, Inc. 2530 N. Charles Street, Suite 200 Baltimore, MD 21218 (Open Weekdays 9am – 5pm // No Walk-in Counseling) • Tenant-Landlord Hotline 410-243-6007 // 800-487-6007 • Fair Housing Hotline 410-243-4400 • Administration 410-243-4468 • Website www.bni-maryland.org // Email us your questions!