Preparedby:CommunityDevelopmentDepartment,

CityOfDecatur,Alabama.FormoreinformationonFairHousingoronhowtofileacomplaint,contact

FairHousingCenterofNorthernAlabama,Birmingham,AL,at866-740-1040

orwww.fhcna.com.

Sources: Electronic Code of Federal Regulation Title 24: Housing and Urban Development, October 29, 2010;

Fair Housing Council of Suburban Philadelphia, 2008

Thisfederallawmakesitunlawful

todiscriminateinconnectiontoany

housing-relatedtransactionsbasedon

race,color,religion,nationalorigin,

gender,disabilityorfamilialstatus.

Thisincludesmortgagelendingand

homeownersinsuranceconcerns.

THE FAIR HOUSING ACT

OTHER POTENTIALLY DISCRIMINATORY ACTIONS

BY INSURANCE COMPANIES INCLUDE:

• Basingcoverageontheageofthehome

• Basingcoverageonthevalueofthehome

TheFairHousingAmendmentsActof1988makesit

illegalforabankorotherfinancialinstitutiontotakethe

followingactionsbasedonrace,color,religion,national

origin,sex,handicap,orfamilialstatus:

• Refusetomakeamortgageloanonthebasis

ofaprotectedclass

• Refusetoprovideinformationonloansonthe

basisofaprotectedclass

• Imposedifferenttermsandconditionsonthe

basisofaprotectedclass

• Discriminateintheappraisingofapropertyon

thebasisofaprotectedclass

• Setdifferenttermsandconditionsforpurchasing

aloanonthebasisofaprotectedclass

• Refusetopurchasealoanonthebasisof

aprotectedclass

Homeownersinsurance“redlining”isaformof

discriminationwhereaninsuranceagencyoragent

treatshomeownersdifferently–suchascharging

higherrates–notbecauseoftheirminoritystatus,

butbecauseoftheminoritycompositionofthe

neighborhoodinwhichtheirhomeislocated.

Discriminationofthisnaturemaytaketheformof:

• Imposingdifferenttermsandconditionsfor

coverageofhomesinminorityneighborhoods

• Refusing/failingtowritepoliciesforapplicants

inminorityneighborhoods

• Refusing/failingtomarketitsproductsin

minorityareas

• Discouragingapplicantsfromminority

neighborhoods

Lending Activities

Insurance Concerns

Studiesshowthatsomeinsurancecompanieshave

policiesthatrestrictaccesstocoverageortothe

mostdesirablecoverage,basedonthevalueor

ageofthedwelling.Agerestrictions(whichcan

startat30years)andhousingvaluelimitationsthat

restrictaccesstothemostdesirablepolicieshave

asignificantanddisproportionateadverseeffect

onminoritieswhoaremostlikelytoliveinthe

neighborhoodswiththeolderhomes.