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Fair Housing: military status, a new protected class in Maryland

By
Real Estate Agent with Thompson Company, REALTORS® 240.593.2860 MD594797

Maryland's Fair Housing laws make it illegal to discriminate based on sexual orientation, gender identity, marital status, and source of income. These 4 are in addition to protected classes under the federal Fair Housing Act (race, color, national origin, religion, sex, disability, and familial status). 

In October 2024, Maryland will add a fifth protected class: military status. Active duty, members of the reserve, and their dependents qualify. Although retired is very much a military status that deserves recognition, it is not specifically mentioned. 

This means that Real Estate professionals and their clients cannot:

- refuse to rent or sell a property
- make a property unavailable
- refuse to negotiate
- offer different terms (e.g. asking for a higher deposit, or application fee)

to any active-duty servicemember, member of the reserves, and their families.

It is important to note that with protected classes, licensed Real Estate agents and their clients are also prohibited from favoring certain classes, making concessions because of their status, or making any statements that indicate a preference. Waiving a rental application fee for active-duty servicemembers, for example, or choosing an offer because of military status would be against the law (I have worked with sellers who have done just that). 

While protecting military members and their families from housing discrimination is a noble cause and the right thing to do, making military status a protected class can come with a loss of certain preferential treatment

Having spent 14 years as an active-duty military spouse, I am intimately familiar with the trials, tribulations, and sacrifices that this life entails. I've represented many active-duty and retired military members and their families with pride over the last 20 years. When we are no longer able to use military status to promote our clients' best interests, it may become even harder to compete. VA loans still have a stigma attached (but I am very much a fan) and are not often chosen over offers with conventional loans. Protecting a class against discrimination shouldn't come with negative consequences - yet, it may. 

What should end, however, is seeing or hearing statements like "I don't take VA" (post published in 2013 but it wasn't the only or last time I heard these words), or excluding VA loans as acceptable financing unless the property is part of a condominium that is not approved by the Department of Veterans Affairs. Too many sellers/agents fear the VA appraisal. But there's no reason to if the property has been prepared properly for the market and any safety or health concerns were eliminated (or never present to begin with). 

This blog post is intended for informational purposes only. If you have experienced possible discrimination you can contact the Equal Rights Center info@equalrightscenter.org. In Maryland, you can also contact the Maryland Commission on Civil Rights.  

Posted by

Andrea Bedard
Thompson Co., REALTORS®

Silver Spring, Maryland
andreabedard.com

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Comments(13)

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Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Andrea Bedard, I have heard many agents say this, but it really is not their decision. It is the sellers. Many never even ask the seller as the agent is not educated about VA loans 

Apr 29, 2024 04:30 PM
Andrea Bedard
Thompson Company, REALTORS® 240.593.2860 - Silver Spring, MD
Fluent in Real Estate & German, M.A. ABR ASP CIPS

I have my doubts, Hannah Williams, if it was the seller's call or the agent's preference/influence. In the future, I may point out that such a statement could be considered discriminatory if my buyer is active duty or a member of the reserves. I am not sure why retirees don't appear to be included in this protected class.   

Apr 29, 2024 06:30 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Andrea Bedard ,

I for one am glad this one has been added! VA loans have changed so much and a seller should always consider a Vet purchasing a home. The lease one can do for their service.

Apr 29, 2024 06:32 PM
Andrea Bedard

The intention is great, Dorie Dillard Austin TX but the potential of losing out on preferential treatment is an unintended consequence. I've successfully sold VA loans to sellers and their agents more than once, but won't be allowed to use military service as leverage anymore. That's a shame.  

Apr 30, 2024 10:31 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Andrea - laws, rules as well as suggested guidelines have consequences.  Both intended and unintended.   It can be difficult to be up to date on local, state and federal requirements.   

Apr 30, 2024 03:24 AM
Andrea Bedard

I doubt that the loss of preferential treatment was an intended consequence. Waiving application fees, giving a credit, or offering a free warranty, for example, as a Thank you for your service wouldn't be allowed anymore. 

Apr 30, 2024 10:37 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Interesting. I wonder how this will affect programs like Homes for Heroes which give money back to military and first responders. Which is preferential treatment. I wonder if that will no longer be allowed in Maryland???

Apr 30, 2024 04:58 AM
Andrea Bedard

I wonder, too, Kat Palmiotti, and hope for some guidance from our state and local associations. There are also counties here that waive the state portion of the property tax for 100% disabled vets. Now, vets aren't specifically mentioned but I don't see why they would be excluded.

I'll update this post when more information is made public.  

Apr 30, 2024 10:39 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I saw that you mentioned this in the Q&A and I find it very interesting.  It seems like eventually, everyone will fall into a protected class, haha.

Apr 30, 2024 06:28 AM
Andrea Bedard

That may just be the case. 

Apr 30, 2024 10:41 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

Good morning, Andrea... on the one hand the rules against discrimination are great... on the other hand... we see unintended consequences that hurt our veterans in their quest to become homeowners.

Apr 30, 2024 06:44 AM
Andrea Bedard

Yes, exactly! I am hoping for less stigma when it comes to VA loans & appraisals, however. 

Apr 30, 2024 10:42 AM
Eileen Burns 954.483.3912
Trans State Commercial Realty Inc. - Fort Lauderdale, FL
FLorida Real Estate Connector

Andrea Bedard I believe most agents do not keep up with education at all.  Many fail to understand finance and how it affects a transaction. 

I fear with all the condo requirements for 25, 40 and 50 year certification here in my area to fully fund a structural column in the reserve account will disqualify VA loans for non compliance.  Worse the condo assoc in deferred maintenance status will fall into the hands of developers who will buy them out and bull doze the current structures for vertical building here on the southeast coast of Florida.

Apr 30, 2024 07:18 AM
Andrea Bedard

I am aware of a couple of condominiums that failed building inspections and are now required to make major repairs. It far exceeds their reserves and the work will have to be covered by special assessments for many years to come. But I haven't heard about any developments around here where owners are getting bought out. I could imagine that some may like that thought!  

May 01, 2024 07:33 AM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Andrea- When I began reading your post, my initial thought was "yea" it's time we give back to those who've served our country. But reading the comments opened my eyes to the unintended consequences. Please follow this up with more information. 

Apr 30, 2024 07:31 PM
Andrea Bedard

I will do that, Kathy Streib!  

May 01, 2024 07:34 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Oh wow, Andrea! This is NOT a good thing - especially if you are a patriot, supporting those who have served our country so selflessly. I can 'sort of' see how it may be discriminatory to some but, can't imagine anyone ever complaining about a serviceman/woman being given a little push to the top. After all they've done for us, it's the least we can do for them.

Thank you for sharing. OH and like you, I don't see how retired are not included but, glad they're not! I love that loophole!

May 01, 2024 01:42 AM
Andrea Bedard

That loophole would be super important for vets with a 100% disability rating who are getting their county's property taxes waived! Otherwise, wouldn't that be considered preferential treatment under the Fair Housing laws? 

May 01, 2024 07:36 AM
Debe Maxwell, CRS

Agreed, Andrea Bedard but, the entire military protected class shouldn't be a thing, in my mind! 

May 01, 2024 07:42 AM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

To make this change really serve the military, some huge efforts will have to be taken to improve the VA loan user experience for everyone involved in the transaction. The appraisal process in this area for both VA and FHA loans is a nightmare. 

And I agree with Debe - we can't do enough for men and women who serve our country in the military.

May 01, 2024 02:06 PM
Andrea Bedard

I can honestly say that I haven't encountered any difficulties with the VA process or appraisal, Patricia Kennedy. Just the opposite, tidewater is a huge plus that can benefit both sides. 

Right now, the allowable expenses need urgent attention. VA buyers will be at a huge disadvantage on any homes that may offer a subsidy but no coop commission moving forward. VA buyers deserve professional representation but cannot use a subsidy to cover compensation for it. I just asked this question in a town hall with the NAR president. At this point, the Department of Veterans Affairs is not willing to reconsider that rule. It may take an act of Congress - and we all know how long that can take. 

May 01, 2024 02:51 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Hi, Andrea!

This post made it onto today’s list of Last Week’s Favorites on ActiveRain. So, thank you for writing it!

A thumb up with a green sleeve

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May 05, 2024 09:05 AM
Andrea Bedard

Thank you, Pat, for selecting and including my post! 

May 06, 2024 06:47 AM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

The law of unintended consequences seems to have stricken.     

May 09, 2024 11:09 AM