The federal Department of Housing and Urban Development (“HUD”) issued some recent guidance (“The Letter”) regarding what licensees can and cannot say to prospective buyers regarding neighborhood crime rates and school quality data. This guidance, issued as a “Dear Colleague” letter from the Assistant Secretary for Fair Housing and Equal Opportunity, sought to push back on claims that licensees violate the Fair Housing Act merely by discussing with prospective home buyers or renters the prevalence of crime or the quality of schools in neighborhoods.

The Letter cites a blog post from NAR, entitled “‘Is This a Safe Neighborhood?’ Don’t Answer That”, as evidence that professional guidance has discouraged real estate brokers and agents from providing information regarding schools and crime to their prospective clients. NAR had previously cautioned that getting into neighborhood crime and school conversations could inadvertently lead licensees toward steering. Steering occurs when someone directs prospective buyers to—or away from—a certain area based on the prospective buyer’s race. The Letter clarifies that in order for a statement to constitute steering, it has to be made with the intent to direct a client based on his race or prevailing racial characteristics of a neighborhood. In other words, providing information without discriminatory intent could not be deemed as steering.

However, NAR has long agreed that the disclosure of neighborhood demographic data is explicitly allowed, except for information about racial, ethnic, or religious makeup. Sharing objective, factual statistics about schools and crime—provided by a third-party source—is actively encouraged by NAR. What is discouraged is substituting commentary for fact. Subjective, personal opinions regarding school quality or neighborhood safety can cross the line into discriminatory conduct. It’s always safer to provide clear, reliable, and objective facts and let your clients make their own judgments based on those facts.

And remember, this guidance only covers federal Fair Housing cases. As a licensee in Virginia, you are still bound by Virginia Fair Housing law. 18VAC135-50-100 defines “unlawful steering practices” as, among other things, “Discouraging the purchase or rental of a dwelling because of [a protected class] by exaggerating drawbacks or failing to inform any person of desirable features of a dwelling or of a community, neighborhood, or development.” That’s a broad definition that could prove problematic if you try to editorialize about the crime or schools in a certain neighborhood. As always, we advise you to stick to objective facts concerning neighborhoods. If you have any questions, please contact us on the Legal Hotline.