2006 Equal Opportunity - Cultural Diversity Committee National Association of REALTORS® 2006 Midyear Legislative Meetings& Trade Expo Omni Shoreham Palladian Room, Main Floor Wednesday, May 17, 2006 10:00 AM - 12:00 PM
Chair: Alice Martin, Phoenix, AZ Vice Chair:Bonnie Casper, Cincinnati, OH Committee Liaison: Ron Phipps, Warwick, RI Committee Executive: Fred Underwood, Washington, DCI. Call to OrderOwnership Disclosure Policy
1. When NAR has an ownership interest in an entity and a member has an ownership interest* in that same entity, such member must disclose the existence of his or her ownership interest prior to speaking to a decision making body on any matter involving that entity.
2. If a member has personal knowledge that NAR is considering doing business with an entity in which a member has any financial interest**, or with an entity in which the member serves in a decision-making capacity*, or wit, then such member mustdisclose the existence of his or her financial interest or decision making role prior to speaking to a decision making body about the entity.
3. If a member has a financial interest in, or serves in a decision-making capacity for, any entity that the member knows is offering competing products and services as those offered by NAR, then such member must disclose the existence of his or her financial interest or decision-making role prior to speaking to a decision making body about an issue involving those competing products and services.
After making the necessary disclosure, a member may participate in the discussion and vote on the matter unless that member has a conflict of interest as defined below.
Conflict of InterestPolicy
A member of any of NAR’s decision making bodies will be considered to have a conflict of interest whenever that member:
1. Is a principal, partner or corporate officer of a business providing products or services to NARor in a business being considered as a provider of products or services (“Business:); or
2. Holds a seat on the board of directors of the Business unless the person’s only relationship to the Business is service on such board of directors as NAR’s representative; or
3. Holds an ownership interest of more than 1 percent of the Business.
Members with a conflict of interest must immediately disclose their interest at the outset of any discussions by a decision making body pertaining to the Business or any of its products or services. Such members may not participate in the discussion relating to that Business other than to respond to questions asked of them by other members of the body. Furthermore, no member with a conflict of interest may vote on any matter in which the member has a conflict of interest, including votes to block or alter the actions of the body in order to benefit the Business in which they have an interest. ________________________________________ *Ownership interest is defined as the cumulative holdings of the member, the member’s spouse, children, siblings and to any trust, corporation or partnership in which any of the foregoing individuals is an officer or director, or owns, in the aggregate, at least 50% of the (a) beneficial interest (if a trust), (b) stock (if a corporation) or (c) partnership interests (if a partnership).
**Financial interest means any interest involving money, investments, credit or contractual rights.II. Welcome and Introduction of GuestsIII. Approval of Previous Meeting's Minutes
IV. Fair Housing Forum Report
V. Diversity in Leadership Recommendations and StatusRecommendation 1: Diversity in Leadership Campaign Materials and information prepared by the 2006 Leadership Summit
At the Leadership Summit, the following materials will be distributed to key audiences to support a message from NAR leadership highlighting the importance and value to NAR of diverse leadership and participation and encouraging stateand local associations to take action to increase diversity in leadership.
For state and local association Presidents and staff:
· An update for the Diversity Toolkit, which can also stand alone, which will provide templates, sample articles, talking points, advertisements and suggested steps an association can take to encourage minority members to volunteer and participate and become leaders in the association. Success stories will be included, along with tips, sample agendas and talking points for state association leadership meetings. · Articles and advertisements for the Realtor Association Executive Magazine promoting diversity in leadership. · Information on how to apply for NAR diversity grants specifically to initiate programs that will lead to increase diversity in leadership.
For Regional Vice Presidents:
· Talking points, PowerPoint presentations, key diversity contacts in their regions, promoting their role in helping NAR leadership identify and recruit new leadership representing NAR’s growing minority membership.
For NAR Liaisons, Committee Chairs and Staff Executives:
· Talking points and diversity tools to facilitate greater diversityamong participants in NAR committees and discussions.
For NAR members:
· A brochure and updated material on realtor.org encouraging diversity participation by outlining the value of diversity in leadership, the value of participation, the committee structure and how to get involved (based on Adorna Carroll’s presentation to committee chairs and vice chairs). · Advertisements and articles prepared for use in NAR publications as well as offered to state and localpublications promoting the value and need for diversity in leadership, highlighting success, and encouraging members to volunteer.
Actions after the 2006 Leadership Summit and in 2007
· A Diversity Speaker’s Bureau comprised of local or regional experts on diversity in leadership (for example successful minority state association Presidents, state or local association executives with successful programs). These speakers would be available to address state or local associations seeking to initiate or expand programs to encourage diversity in leadership.
· New articles, advertisements and talking points highlighting diversity in leadership and success stories will be created for distribution at the 2006 Annual Conference, 2007 Legislative and Regulatory Conference, AE Institute, Leadership Summit and Annual Conference.
· New materials to promote NAR’s committee appointment process ready for the 2008 committee appointments. This will include materials to be mailed to state association executives, current NAR committee leaders and leadership and others, encouraging that members recommended for committees represent the diversity of NAR’s membership.
Recommendation 2: Assisting State and Local Associations
· The Diversity Grants program will be expanded to provide funding for more local association diversity programs by raising the maximum amount funded from $3,000 to $5,000, and by increasing the number of boards funded to 30 from 15, the additional grants earmarked for diversity in leadership activities. This will be implemented in the second half of 2006.
· Two pilot studies, one each in 2006 and 2007, will provide consultant assistance tostate associations seeking to plan and implement diversity in leadership programs. These studies, along with focus groups of state association executive officers, will be used to develop recommendations for programming that will effectively provide the technical expertise needed at the state and local level to increase diversity in leadership.
Recommendation 3: Supporting Opportunities for Minority Leaders
· At the May 2006 Midyear Meetings, amend the purpose of the Equal Opportunity Cultural Diversity Forum to add diversity in leadership as a forum topic.
· In 2006, NAR Federal Political Coordinators for members of the Congressional Black Caucus will meet with the leadership of the Congressional Black Caucus todiscuss housing issues and strategies to achieve policy objectives shared with the Caucus. In addition, this group of Federal Political Coordinators will participate in and seek to host educational sessions on housing and community development issues at the Caucus’s Annual Legislative Conference in September.
· In 2006, NAR will seek to begin work with Federal Political Coordinators for the Congressional Hispanic Caucus by flying in a limited number of these Federal Political Coordinators to the Caucus’s Policy meetings in late September. This will be followed by meetings between Federal Political Coordinators and leadership of both the Congressional Hispanic Caucus and Congressional Hispanic Conference with a goal of greater participation by Federal Political Coordinators in the Caucus and Conference policy meetings
· In 2007, these activities will continue and be expanded to include the Congressional Asian Pacific American Caucus.
· At the 2007NAR Conference and Expo, host a major diversity event highlighting the Association’s commitment to diversity, highlight successful state and local leadership diversity activities, and encouraging networking among and between minority members and association leaders. Since many related industries have active diversity or expanding markets programs, there is an opportunity to seek sponsorships for this event.Ongoing Discussion at the Equal Opportunity Cultural Diversity Committee
Expanding Diversity in Leadership is a key goal and objective of the Equal Opportunity Cultural Diversity Committee. The Committee will continue to discuss successes at the state and local level, review research and information concerninghow best to provide technical assistance to state and local associations, and additional approaches to expand diversity among those participating in NAR committees and activities.
VI. Fair Housing Testing ReportsThe National Fair Housing Alliance has announced a number of complaints against real estate sales companies over the past year. Last month, in their annual trends report, they claimed that incidents of steering were found in most of their tests. Resulting publicity has focused on the perception of widespread steering.
The tests came about as a result of HUD's 2000 Housing Discrimination Study. That study showed that overall discrimination in sales was down significantly. However, the study pointed to increases in steering, both in terms of the areas in which homes were shown and in the types of comments agents made to testers. The overall level of steering was up to 16% of all tests, a slight increase from a decade earlier. HUD then contracted withthe National Fair Housing Alliance to conduct further tests on those it had previously identified as steering. HUD wanted NFHA to develop complaints if it found further evidence of steering.
In the latest tests, the National Fair Housing Alliance found steering in most tests. In 87% of the tests of those previously found to have steered, there was further evidence of steering. The National Fair Housing Alliance has so far filed less than a dozen complaints based on these tests.
Priorto this round of tests, NAR updated the At Home with Diversity course to include a greater emphasis on steps to take to prevent steering. In addition, NAR released, in November 2005, a Fair Housing training DVD that includes training regarding steering.
The types of complaints the National Fair Housing Alliance filed are based on statements allegedly made by real estate sales agents that are discriminatory on their face. For example, there were statements about the racial or religious composition of communities, differing statements about the quality of schools based on the race of the tester, and statements by the agents that even though the agent knew not to make the statement, made it anyway. These complaints also allege geographic disparity in the homes offered and shown.
In response to a complaint in the Detroit suburbs, the Michigan Association of REALTORS® is designing a self testing program in cooperation with local fair housing centers in the state. In response to a complaint in Atlanta, a large company has revamped its training program, buying enough copies of NAR materials for each of its agents.
A copy of the National Fair Housing Alliance report may be found at www.nationalfairhousing.org. VII. Discussion Regarding Internet AdvertisingHow does the Communications Decency Act impact the Fair Housing Act when it comes to advertisements and notices for housingposted on web sites? The Communications Decency Act, among other things, states that providers of interactive computers services are not publishers under other federal laws. The Fair Housing Act prohibits making, printing or publishing an advertisement,notice or statement that is discriminatory. Based on the Communications Decency Act, the courts have dismissed at least one complaint against an internet providers even though they it carried housing ads that included discriminatory language. Similarly, MLS systems and online presentations of homes for sale on sites such as Realtor.com may also be exempt from Fair Housing Act coverage for comments and statements entered as part of listings. The Communications Decency Act does not limit the applicability of Fair Housing Laws to the provider of the discriminatory statement or notice. Most MLS systems have filters in place to screen out potentially discriminatory terms.
NAR supports Equal Housing Opportunity and the Fair Housing Act. NAR opposes government rules that unnecessarily increase consumer costs or unnecessarily burden the business community.
Certain web publishers claim they are completely exempt for the content of third party advertisements and notices placed on their web sites. Fair housing organizations and HUD maintain that the Fair Housing Act does cover these web publishers and that the Communications Decency Act does not over ride the Fair Housing Act in this regard.
The Fair Housing Act prohibits discrimination in housing, with several exemptions including homes for sale by owner. However, the Fair Housing Act also prohibits advertising, notices or statements which express discrimination, with no exemptions. REALTORS® and others who do not discriminateare protected from advertisements by those exempt from the anti-discrimination provisions of the law. Since the publisher of the advertisements and notices is also subject to the Fair Housing Act, there are few, if any, discriminatory ads in newspapers, for example. By allowing an exemption on the internet, REALTORS® ads could be interspersed with those "for sale by owner" ads that do express discrimination. Even though these ads themselves are illegal, it is not likely that fair housing groups willhave the time and resources to pursue each individual violation. Filters, however, do not catch every use of discriminatory language and publishers are liable even with one discriminatory ad being published. It is relatively inexpensive to install filters, like those used by MLS providers, but extremely costly to review each individual advertisement or listing. These costs could be passed on to REALTORS®, making internet listings much more expensive.
Several courts have already ruled thatthe Communications Decency Act exempts internet providers from the publishing provisions of the Fair Housing Act. HUD has regulations addressing the liability of publishers for advertisements and notices they publish. In general, HUD will not pursue complaints against publishers for statements or notices that are not, on their face, discriminatory. They will pursue complaints against publishers if statements made by third party advertisers are discriminatory on their face. There are currently no regulations in this area codifying this practice.
