While it's unconscionable that any realty agents would steer people to or from certain housing or neighborhoods in this day and age, it's also sickening that the U.S. government empowers bounty-hunting nonprofit organizations to be in the position of judge, jury, and dealmaker over fair housing violations. One organization doesn't see it Realty Times' way.

Dear Ms. Evans:

"In reference to your article "Is NRT Being Blackmailed?" published on August 28 at Realtytimes.com: the answer is an emphatic, "NO".

"What is happening to NRT is enforcement of the law. The Fair Housing Act very simply states that it is a violation of federal law to refuse to "rent, sell, or negotiate" a place to live or to impose different treatment, rules, conditions, benefits, etc. because of race, color, national origin, religion, gender, disability or familial status. NRT simply just got caught in a "pattern and practice snag" when tester evidence indicated "different treatment because of race" against Coldwell Banker's Gold Coast office in Chicago and its parent company, NRT."

"When an entity is obligated to uphold the law that is not blackmail. Private Fair Housing agencies -- who are empowered by the Community Development Act of 1987 and HUD to perform private enforcement activities -- receive thousands of housing discrimination complaints collectively throughout all 50 states every year. Rather than "pooh-pooh" the efforts of NAFA and their Mission to end housing discrimination, your publication might well warn real estate agents and brokers that the Fair Housing Act is alive and well and that it will continue to be enforced."

"Shame on you and your publication for characterizing NRT as some innocent bystander just trying to make a buck in a difficult and complex market. In reality, NRT's subsidiary, Coldwell Banker DID treat African American testers differently than white testers -- over and over again! If NRT is pleading "innocence" they would not be in the settlement mode. They would be on their way to judge and jury. Unfortunately, they were caught red-handed in terms of the overwhelming tester evidence. No wonder they are so anxious to settle with Shanna Smith and NAFA!"

MJ Borelli, Executive Director, Fair Housing Council of Central California

Realty Times responded: "I didn't say that NRT was innocent, but I do have a problem with a third-party setting itself up as investigator and plaintiff."

Borelli explains,

"As I pointed out in my original e-mail to you, private Fair Housing Councils such as NAFA -- or my agency (the Fair Housing Council of Central California), for that matter -- are empowered by the federal Community Development Act of 1987. The federal government supports private enforcement initiatives from qualified fair housing groups because the problem of housing discrimination is so pervasive."

"The "third party" that you refer to -- outside of the claimant and the respondent (NRT, for example), is often the investigating entity, i.e., NAFA or any other HUD-qualified fair housing group. As such, private fair housing groups often have "standing" in fair housing lawsuits -- often because the discriminatory acts were egregious enough to divert the agency's limited resources and thus, frustrate the agency's mission to eradicate housing discrimination. Such may result in substantial financial damage."

"There are many legal precedents that both define and underscore the standing issue for private fair housing entities. To characterize the award of compensatory damages as "funding" for these agencies is also incorrect. Let's take the word "compensatory" (as in "compensate") and "damages" and together they mean compensation for damages done (to the plaintiff). Such damages vary from case to case and I will not portend to guess the damages of the NRT case in Chicago -- even though a settlement amount has been suggested by NAFA. In short, Fair Housing Councils and other such groups often have standing in such cases and this has been upheld in Supreme Court decisions. Sounds like you could use some fair housing training and thus, avoid problems in the future?"

Realty Times responds: "I know you have standing. I just have a problem with it. I'm not endorsing fair housing violations, but I don't endorse enforcement via blackmail either. The reason it's called blackmail is extortion from guilty parties. Just because they're guilty doesn't make what Smith and others are doing right. There's just something unsavory about pointing the finger with one hand and holding the other hand out to be paid."

Borelli soldiers on:

"When one breaks the law there must be justice and remedy. Apparently you don't understand this very important point. I think that you probably don't like the idea of real estate folks getting caught at something that has been in practice for far too long ... Shall we just slap the hand of such perpetrators and say, "Now, now let's not do that again.."??? I think not."

"When you run a red light, Ms. Evans, and the policeman pulls you over by the side of the road, he presents a ticket to you which represents (in most states) a hefty fine. This fine will hopefully be a deterrent to any future red-light running. If there was no deterrent, perhaps the next red light run may well result in injury or death to the unsuspecting motorist who just happened to be at the wrong place at the wrong time ... You see? Crime and Punishment, Ms. Evans. In the Case of the Chicago realtors and NRT -- whom you so vigorously defend -- one can only imagine the damage to all of unnamed African-American home-seekers who got the run around or no service at the Gold Coast Chicago Coldwell Banker ... ."

"Housing discrimination is real and harmful, Ms. Evans. It hurts individuals and communities ... and it is against the law. The efforts of organizations like NAFA, have done absolutely the right thing by putting the spotlight on NRT and Coldwell Banker. Maybe next time they will think twice about treating prospective customers differently because of the color of their skin ... ."

Realty Times responds: "I think you're missing my point. I'm not against enforcement. I'm against the bounty hunter being able to "make it go away" by taking a payoff. That's what I got directly from Ms. Smith."

Ms. Borelli continues:

"And I think you are missing the point. Shanna Smith and NAFA are not "bounty hunters." The National Fair Housing Alliance is one of many private enforcement entities the country. Coldwell Banker broke the law; NAFA caught them. Lawsuits act as deterrents to future housing discrimination. NAFA has legal standing in this particular lawsuit."

"You may have a negative "opinion" as to how fair housing law works or the justice system works -- you certainly have a right to your "opinion." However, as spokesperson for the industry, I am amazed that you are not repulsed at the housing discrimination issue at play here. How much influence you must have to underscore the importance of fair housing and fairlending opportunities to all!"

"These compensatory awards DO NOT fund fair housing agencies. The awards are always used to affirmatively further fair housing -- they certainly do not go to individual executive directors! You might do a little research on such fair housing cases and awards. I invite you to go to fairhousing.com and look at some of the news articles and databank of cases. You can do the same thing at Findlaw.com."

"Most importantly, look at the law ... ."

Published: September 12, 2006

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Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.