One of the nation’s largest real estate services companies has settled a lawsuit brought forward by the the National Fair Housing Alliance. Redfin will reportedly pay $4 million to settle the fair housing suit, and additionally will change its minimum housing price policy.
The lawsuit argued that Redfin’s minimum home price policy violated the Fair Housing Act by discriminating against sellers and buyers of homes in communities of color. NFHA and the other nine plaintiffs alleged that policies that limit or deny services for homes priced under certain values can perpetuate racial segregation and contribute to the racial wealth gap.
According to NFHA, the impending changes at Redfin will increase access to its services and help counter redlining and residential segregation that NFHA and the other plaintiffs alleged Redfin’s policies perpetuated.
“Our goal was to ensure that all neighborhoods are treated fairly and have access to the full range of services provided by any real estate company,” said Lisa Rice, President, and CEO of NFHA. “We must also ensure that companies do not use their technologies, including digitally-based platforms, to deny people the housing opportunities and services they deserve. The steps Redfin has agreed to take are a positive move toward stamping out some of the nation’s most harmful practices, like redlining and appraisal bias.”
The $4 million settlement will reportedly be used to conduct monitoring and compliance programs that expand homeownership opportunities in the cities covered by the lawsuit, as well as cover litigation expenses.