To access the new Handbook for MHA, inclusive of HAMP and HAFA, click here. While reviewing the Handbook you should be aware of the case of Flagstar Bank v. Walker wherein the Court held that the statutory good faith standard for a CPLR 3408 Foreclosure Settlement Conference is compliance with the Handbook. To review the case, click here.
This Handbook is the rules for banks / servicers to modify mortgages, so pay careful attention to detail and make sure that they comply.
Source of Income
discrimination in housing means not offering rental housing equally to those
who wish to pay their rent by way of housing choice vouchers, Social Security,
unemployment insurance, veteran's benefits, or other governmental
subsidy.
While neither the Federal Fair Housing Act nor
the New York Human Rights Law makes Source of Income a protected class, many
municipal laws do. Additionally, S83-2011 proposes to add this protected class
to the New York Human Rights Law. To read the bill, click here.
The bill's JUSTIFICATION states as follows:
"Currently, New York State law does not
prevent landlords from discrimination based on a person's source of income. As
a result, landlords often reject tenants with rental subsidies, such as Section
8 and subsidies tied to the Nursing Facility Transition and Diversion and
Traumatic Brain Injury Medicaid Waivers. Many people with disabilities rely on
those subsidies and other assistance programs to live independently in the
community. This legislation would make discrimination by landlords based on a
tenant's source of income illegal under New York State Human Rights Law.
Similar laws have already been passed in New York City and Nassau.
This topic recently came to the forefront as New
York City’s Human Rights Law does make source of income a protected class and
an individual, Keith Short, who believed that he was discriminated against
brought a claim thereunder. In pursuing his claim, Keith Short sued MANHATTAN
APARTMENTS, INC., ABBA Realty Associates, Inc., Soni Realty LLC, Kimberly Place
Realty Corp., and Askarinam Realty, Inc. Mr. Short claimed that the Defendants
refused to rent to him because he had acquired immunodeficiency syndrome (AIDS)
and received public housing subsidies. Mr. Short’s subsidy was from HIV/AIDS
Services Administration (“HASA”). Mr. Short claimed that as a result of the
discrimination he experienced several months of homelessness as wells as
emotional distress. The Court awarded Mr. Short $20,000 as a result of the
discrimination.
Now, we are often asked about discrimination
and what is permitted and what isn’t. The rule is you can discriminate against
anyone you want for any reason you want unless the discrimination falls into a
protected class. Be mindful that while there is a Federal Law, the Fair Housing
Act and a New York State Law, the Human Rights Law, both of which have their
own set of protected classes, many municipalities such as New York City have
far more expansive laws with a multitude of additional classes. It is the duty
of a real estate agent to know the laws in the municipality where you work. Be
careful not to discriminate. Also, pay attention to the bill to modify the
State’s Human Rights Law because one day it is likely that source of income
will be a protected class throughout the State as it becomes a more and more
visible form of discrimination.
