Prepared by: Community Development Department, City Of Decatur, Alabama. For more information on Fair Housing or on how to file a complaint, contact Fair Housing Center of Northern Alabama, Birmingham, AL, at 866-740-1040 or www.fhcna.com.
THE FAIR HOUSING ACT This federal law makes it unlawful to discriminate in connection to any housing-related transactions based on race, color, religion, national origin, gender, disability or familial status. This includes mortgage lending and homeowners insurance concerns.
Sources: Electronic Code of Federal Regulation Title 24: Housing and Urban Development, October 29, 2010; Fair Housing Council of Suburban Philadelphia, 2008
OTHER POTENTIALLY DISCRIMINATORY ACTIONS BY INSURANCE COMPANIES INCLUDE: • Basing coverage on the age of the home • Basing coverage on the value of the home
Lending Activities
Studies show that some insurance companies have
The Fair Housing Amendments Act of 1988 makes it
policies that restrict access to coverage or to the
illegal for a bank or other financial institution to take the
most desirable coverage, based on the value or
following actions based on race, color, religion, national
age of the dwelling. Age restrictions (which can
origin, sex, handicap, or familial status:
start at 30 years) and housing value limitations that restrict access to the most desirable policies have
• Refuse to make a mortgage loan on the basis
the basis of a protected class
• Set different terms and conditions for purchasing
a loan on the basis of a protected class
• Refuse to purchase a loan on the basis of
basis of a protected class
• Discriminate in the appraising of a property on
basis of a protected class
• Impose different terms and conditions on the
Insurance Concerns
of a protected class
• Refuse to provide information on loans on the
a protected class
a significant and disproportionate adverse effect
on minorities who are most likely to live in the neighborhoods with the older homes.
Homeowners insurance “red lining” is a form of discrimination where an insurance agency or agent treats homeowners differently – such as charging higher rates – not because of their minority status, but because of the minority composition of the neighborhood in which their home is located. Discrimination of this nature may take the form of: • Imposing different terms and conditions for
coverage of homes in minority neighborhoods
• Refusing/failing to write policies for applicants
in minority neighborhoods
• Refusing/failing to market its products in
minority areas
• Discouraging applicants from minority
neighborhoods