New York State Assemblywoman Kimberly Jean-Pierre (D-Wheatley Heights) has announced that the Assembly has passed legislation (A.8903-A) to help end discriminatory practices in the real estate industry that disproportionately affect minority homebuyers. The legislation, which passed the state Senate earlier this week and is sponsored by Senator Jim Gaughran (D-Huntington), makes clear that real estate brokers and salespersons may be fined and their licenses suspended or revoked for subjecting prospective homebuyers to discriminatory practices.

“Homeownership is the cornerstone of the American Dream, and real estate agents and brokers play a significant role in this momentous part of their client’s lives,” said Assemblywoman Jean-Pierre. “Discrimination and segregation have no place in our modern society, and certainly have no place within the real estate and housing industry.”

“New York has long been a champion of civil rights, but my colleagues and I in the Assembly Majority know that there is still work to be done,” said Assembly Speaker Carl Heastie. “No one seeking to buy a home should be subject to different treatment by their real estate broker on the basis of the color of their skin, ethnicity or any other personal trait. This legislation reflects our commitment to protecting the rights of every New Yorker.”

“This legislation will ensure that real estate agents who violate New York’s Human Rights Law by ‘steering’ minority families towards certain communities, or other racial practices that deny individuals the dignity of choosing their home and neighborhood, face license revocation,” said Senator Gaughran. “Our nation’s soul is in crisis and public officials must speak out against racism and segregation and discrimination in our society, once and for all.”

The New York Department of State has the authority to fine, suspend or revoke the license of a broker or real estate salesperson for violations of law, but the statute does not specify that this includes discrimination in their capacity as an agent or broker. This important legislation changes this, expressly confirming the Department’s authority to punish such conduct in order to deter future behaviors and to better secure for homebuyers the right to fair and equal treatment in the real estate and housing marketplace.

A comprehensive, 3-year investigation conducted by Newsday into real estate practices in 2019 found widespread evidence of biased treatment against minority homebuyers. The subsequent report revealed that agents were steering potential homebuyers to certain neighborhoods based on their race and were requiring pre-approval for mortgages from minority clients, but not from their white counterparts. Newsday also found that nearly half of black testers, 39% of Hispanic testers and 19% of Asian testers received unfair treatment from agents involved in the investigation.[1]

This legislation will now be sent to the governor’s desk for signage into law.

[1] projects.newsday.com/long-island/real-estate-agents-investigation