City of Alexandria, Virginia
__________________
MEMORANDUM
DATE: JUNE 5, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of the Receipt of Results of FY 2013 Fair Housing Testing.
BODY
ISSUE: Receipt of the results of fair housing tests performed in Fiscal Year 2013.
RECOMMENDATION: That City Council receive the results of fair housing tests conducted in Fiscal Year 2013 for discrimination in mortgage lending on the basis of race.
BACKGROUND: The Fair Housing Testing Program uses pairs of trained testers to identify evidence of discrimination in the provision of housing by the rental, sales, and mortgage lending industries. The program is administered by the Office of Housing with review and oversight by the Executive Committee of the Alexandria Human Rights Commission, and tests for discrimination prohibited by the City's Human Rights Ordinance.
Federal fair housing law prohibits housing discrimination on the basis of race, color, religion, sex, age, familial status, national origin or handicap. The state fair housing law includes the same protections, and adds elderliness. The City's Human Rights Ordinance adds protection against housing discrimination on the basis of marital status and sexual orientation. Prohibited rental, sales, and lending practices include, but are not limited to, refusal to rent, sell, or negotiate the sale or rental of housing, but also discrimination in the terms, conditions, or privileges of rental or sale, as well as the provision of services or facilities.
Since the Fair Housing Testing Program started in 1990, the Office of Housing has conducted a series of tests to identify discriminatory housing practices in real estate sales, lending, and rental housing based on race, national origin, familial status, disability, and sexual orientation. A summary of the test results of all categories tested since the program was initiated in 1990 has been provided as an attachment to this report (Attachment I). This data allows for a comparison of the test results to measure progress in industry compliance with fair housing laws. This information is also helpful in evaluating the effectiveness of City programs, including testing, fair housing education, outreach, and enforcement activities.
DISCUSSION: In April and May 2013, the Office of Housing identified and tested 13 real estate lending institutions in the City for discrimination in pre-purchase real estate mortgage lending on the basis of race and national origin. Two teams of paired testers comprising black and white testers were trained and participated in the testing exercise. Testers were paired by race but were otherwise closely matched in their assigned credit, financial and employment profile. However, the minority tester was slightly more qualified with regards to income credit, and available funds for home purchase than the white tester. Each tester sought to buy a house within the Alexandria city limits.
A total of 13 real estate lending institutions in the city were tested. No evidence of differential treatment or discriminatory practices was indicated in any of the test sites. The Alexandria Human Rights Commission voted at its May 21, 2013 meeting to recommend that City Council receive the results of the Fiscal Year 2013 fair housing testing.
Fiscal Year 2013 testing results indicate that housing providers are aware of, and in compliance with fair housing laws. The City's commitment to fair housing and its ongoing testing, education, and outreach programs contribute to this awareness and compliance. Therefore, staff and the Human Rights Commission recommend that staff continue to evaluate and offer fair housing education and outreach services to property management, lending, real estate, and leasing professionals in Alexandria, and continue to conduct ongoing fair housing testing. The City's testing program, education, and outreach programs for property management and real estate professionals, combined with national and regional fair housing efforts, appear to have contributed in the increased awareness and understanding of fair housing laws in the housing industry, resulting in decreasing evidence of housing discrimination in Alexandria.
ATTACHMENT:
Attachment 1 - Summary of Fair Housing Testing Program Results
STAFF:
Mark Jinks, Deputy City Manager
Mildrilyn Davis, Director, Office of Housing
Melodie Seau, Division Chief, Landlord Tenant Relations
Onwuchekwa Okpara, Relocation Advisor, Landlord Tenant Relations