FHC files Federal Lawsuit alleging Florida SB264 Housing Law violates Federal Fair Housing Act

Today the Fair Housing Center of the Greater Palm Beaches, Housing Opportunities Project for Excellence (H.O.P.E., Inc.), National Fair Housing Alliance (NFHA) and the Asian Real Estate Association of America (AREAA) filed a fair housing discrimination suit in federal court in Miami challenging Florida’s SB 264, a state law that greatly restricts people from China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria from purchasing real property in the state.

The law almost completely prohibits Chinese citizens and people domiciled in China from buying property in the state. People domiciled in one of the other six countries are prohibited from buying real property within ten miles of critical infrastructure facilities or military institutions—a restriction that covers 98.5% of all residential land in the state.

“Xenophobia has no place in our country—and let there be no mistake, that’s precisely what SB 264 is,” said Noah Baron, Assistant Director of Litigation at Advancing Justice – AAJC. “This legislation echoes last century’s ‘alien land laws,’ which also restricted the property rights of Asian Americans on the basis of stereotypes and prejudice. The United States must not continue down this dangerous road; we know where it leads because we have traveled it before: during World War II when unfounded suspicions of Japanese Americans led to the forced imprisonment of over 120,000 Japanese Americans by the U.S. government and going as far back as the 1882 Chinese Exclusion Act.” 

“The people of Florida deserve better than a government that says ‘you are not welcome’ to large groups of people just because they were born in a particular country,” said Vince Larkins, President and CEO of Fair Housing Center for the Greater Palm Beaches. “We cannot sit idly by while housing discrimination is now the official policy of the State of Florida.”

The lawsuit filed by Relman Colfax, Asian Americans Advancing Justice – AAJC, and Courtney Cunningham asserts that SB 264 violates the federal Fair Housing Act, which prohibits acts that are motivated by a person’s national origin or have a disproportionate harmful effect on people from specific countries. As described in the complaint, SB 264 is based on stereotyped and xenophobic generalizations, and is transparently motivated by discrimination against people from the seven targeted countries.

“SB 264 is reminiscent of early twentieth century land laws that attempted to prevent Asian and other immigrants deemed undesirable from settling in the United States. This law is one of the most discriminatory housing prohibitions this country has seen since the Fair Housing Act was passed in 1968. Legislation such as this prevents people from purchasing homes and becoming, or continuing to be, valued members of the community. SB 264 cannot be permitted to stand,” said Keenya Robertson, President and CEO of Housing Opportunities Project for Excellence, Inc.

“This is a momentous day for AREAA and our 19,000 members as it is the first time we have filed suit to protect the rights of the AANHPI community,” said Jamie Tian, President of AREAA. “SB 264 must be defeated. Florida legislators and Governor DeSantis have wrongly targeted Chinese, and other select groups of immigrants. They have opened the door for greater discrimination while creating increased barriers of homeownership entry for prospective AANHPI homebuyers and sellers. My parents came to the U.S. from China as PhD candidates and they eventually bought a home in Irvine, California. I shudder to think about what my parents would have gone through today if they had settled in Florida. It’s infuriating to realize we now live in a reality where government leaders are putting homeownership out of reach for AANHPI people in Florida.”

The law was promoted by Governor DeSantis who described it as part of an effort to prevent people from certain countries from “worming” their way into American society. The bill’s sponsor described it as targeting foreign agents, but its broad sweep captures people lawfully in the United States and vetted by immigration officials such as people on student visas, domestic employment and seasonal worker visas, and visas for victims of criminal activity and human trafficking. People from the targeted countries who already own property in the state are required to register with the Florida Department of Commerce. The penalties for violating the law include felonies punishable by as much as five years imprisonment and can be applied to buyers, sellers, and real estate professionals.

“The federal Fair Housing Act was signed into law to eliminate the race-based barriers to housing that have plagued our nation since its inception. SB 264 is contrary to the spirit of our nation’s fair housing laws and tramples on the rights of people of Asian descent and other immigrants. It sends the dangerous message that discrimination in housing based on national origin is acceptable in the state of Florida,” said Lisa Rice, President and CEO of the National Fair Housing Alliance. “We look forward to vindicating the fair housing rights of Asians and other immigrants in Florida and making it possible for them to secure stable housing.”

The sponsors’ defense of the bill is to cite national security concerns, but people from the targeted countries make up a tiny percentage of all residential property buyers in the state and the legislative record identified no link between the purchase of residential property and security threats. With no basis, SB 264 explicitly targets individuals from the seven targeted countries for disfavored treatment while imposing no similar restrictions on nationals of any other country. The legislation impedes the pursuit of the American dream for families from China and the other countries who aspire to build a life in this country free from discrimination.

“It is our expectation that the court will find this explicitly discriminatory law as a violation of the Fair Housing Act and strike it down,” said Reed Colfax, a partner with Relman Colfax. 

To view the full complaint click here.

HUD Commemorates National Fair Housing Month

WASHINGTON – Today, Adrianne Todman, Acting Secretary of the U.S. Department of Housing and Urban Development (HUD), released the following statement in commemoration of Fair Housing Month and the signing of the Fair Housing Act of 1968, which prohibits discrimination on the basis of race, color, national origin, religion, sex (including sexual orientation and gender identity), disability, and familial status.

“For more than half a century, the federal government has sought to end discrimination in housing through enforcement of the Fair Housing Act. Under the Biden-Harris Administration, the Department of Housing and Urban Development takes its responsibilities under that law and other civil rights laws very seriously and works diligently to ensure people have full access to housing that meets their needs,” said HUD Acting Secretary Adrianne Todman. “Everyone in this country deserves to live free from discrimination, bias, and danger. This Fair Housing Month, we are recommitting ourselves to the important work of protecting individuals and families across America from harm.”

This year’s Fair Housing Month theme, Fair Housing: The ‘Act’ in Action, underscores the Biden-Harris Administration’s commitment to combating discrimination in housing, protecting fair housing rights for all who call America home, and redressing our nation’s past discriminatory policies and practices.

“This April, we reflect on the hard-fought battle for fair housing and recommit efforts to eliminate discrimination and disparities in housing across our country” said Demetria L. McCain, Principal Deputy Secretary for Fair Housing and Equal Opportunity. “This month and every month, HUD is taking meaningful action to advance housing justice and protect the rights of all people to live free from discrimination in the homes of their choice, regardless of their race, color, religion, national origin, sex (including sexual orientation or gender identity), disability, or familial status.”

Each April, HUD recognizes Fair Housing Month alongside communities, fair housing advocates, and fair housing organizations to underscore the significance of the Fair Housing Act, raise public awareness of fair housing rights and responsibilities, highlight fair housing enforcement efforts, and emphasize the importance of creating diverse and inclusive communities.

HUD will commemorate Fair Housing Month with an Opening Ceremony on April 11, 2024, at 2:00 P.M. (EDT), that will showcase HUD’s efforts to advance and protect fair housing rights to ensure that all people have the right to obtain the housing of their choice, free from discrimination. Register to attend the Fair Housing Month Opening Ceremony here. There is no cost to register. For a complete listing of HUD Fair Housing Month events and activities, visit: https://www.hud.gov/FHM. Follow the Office of Fair Housing and Equal Opportunity on Facebook for additional news and updates.

Mortgage Giant loanDepot.com Commits to Industry-Leading Best Practices for “Reconsideration of Value” in Settlement of Appraisal Discrimination

A landmark settlement has been reached with loanDepot.com, LLC, one of the ten largest residential mortgage lenders in the country, resolving a federal appraisal discrimination lawsuit brought against the lender.

Relman Colfax filed the case on behalf of homeowners Drs. Nathan Connolly and Shani Mott, a Black couple living in the mostly white historic neighborhood of Homeland in Baltimore, Maryland. The couple applied to loanDepot to refinance their mortgage and loanDepot had the home appraised by Shane Lanham of 20/20 Valuations, LLC. Drs. Connolly and Mott alleged that the appraisal was discriminatory on the basis of race, and that loanDepot discriminated and retaliated against them by failing to overturn the appraisal and/or have a new one conducted. The discrimination claims against Defendants Lanham and 20/20 Valuations remain pending.

Recognizing that fair and accurate appraisals are critically important to protecting the fair housing and fair lending rights of people of color, loanDepot commits in the settlement to maintain or implement a comprehensive set of industry-leading policies and practices for the “reconsideration of value” (ROV) process in mortgage lending. loanDepot will make clear to applicants that they can ask loanDepot to reconsider an appraisal if they believe it is flawed. loanDepot will explain how to make an ROV request, maintain a clear and thorough internal process for timely addressing them, escalate any that allege discrimination, and explain any denials in writing. Second appraisals will be ordered if loanDepot identifies any indicia of discrimination. Applicants will not be charged to utilize the ROV process.

loanDepot will require its employees to attend training on appraisal discrimination and appraisers to certify that they have not been found to have discriminated. The company will not utilize appraisers who cannot meet this certification requirement or if bias is identified. It will also conduct statistical analyses of appraisals and ROVs to identify any possible discrimination, maintain records, and report its findings. The settlement also provides for a payment to Drs. Connolly and Mott. The Settlement Agreement, which sets forth the required ROV best practices in greater detail, is available here.

Dr. Connolly stated that he is “pleased that loanDepot has agreed to these important best practices for ROVs and hopes that other lenders will follow loanDepot’s lead and commit to comparable policies and procedures.” While loanDepot denies the allegations in the litigation, it engaged constructively throughout the settlement process, demonstrating a commitment to combat bias in lending. 

The Relman Colfax litigation team includes John Relman, Reed Colfax, Jennifer Klar, Glenn Schlactus, Soohyun Choi, Gabriel Diaz, and David DePriest, with paralegal assistance from Don Scales, Max Niles, and Jazmin Trenco.

 

Eleventh Circuit Court of Appeals Blocks Florida law that Discriminates based on National Origin

The Eleventh Circuit Court of Appeals has temporarily halted the enforcement of an unconstitutional Florida law, known as SB 264, against two Chinese immigrants who have challenged the statute in court. SB 264 bans many Chinese immigrants, including people here as professors, students, employees, and scientists, from buying a home in large swaths of the state. This decision comes after a Florida district court ruled against the plaintiffs’ motion to preliminarily block the law while the case proceeded.

Judge Nancy Abudu acknowledged that “SB 264 was enacted for the specific purpose of targeting people of Chinese descent.” Judge Abudu concluded that the plaintiffs have shown a substantial likelihood that statute also violated the Equal Protection Clause of the United States Constitution. In doing so, Judge Abudu excoriated the District Court’s fraught reliance on the widely discredited century-old Terrace v. Thompson, 263 U.S. 197 (1923), case, determining that it “may have had support in 1923, but it is now 2024” and such laws are now subject to strict scrutiny. 

Florida’s ban violates the U.S. Constitution by specifically targeting Chinese citizens, said Bethany Li, legal director of the Asian American Legal Defense and Education Fund, one of the groups representing the plaintiffs.