Lansing, MI

Here is another summary of a recent legal case involving a fair housing issue. This case is a little different than the typical fair housing case because it involves the criminal interference with the right to fair housing instead of the usual civil violation. Although this case doesn’t provide much guidance about the "dos and don'ts" under the Fair Housing Act for real estate professionals, I thought it was nevertheless interesting and worth posting.

On Tuesday (October 13, 2009), a Louisiana man plead guilty to firing three shots from a shotgun at the home of three Hispanic men and, after they fled, entering the home and setting a fire that burned it to the ground.

Johnny D. Mathis plead guilty to three criminal counts, including (1) criminal interference with the right to fair housing; (2) use of fire to commit a felony; and (3) use of a firearm during a crime of violence. Each count carries a maximum penalty of ten years in prison, a $250,000 fine, or both. Furthermore, the ten year penalties for use of fire to commit a felony and use of a firearm during a crime of violence are mandatory, meaning that Mr. Mathis now faces a maximum sentence of 30 years and a mandatory minimum of 20 years in prison. Sentencing is scheduled for January 13, 2010.

Testimony presented at the plea hearing established that on June 15, 2008, Mr. Mathis fired three shots from a shotgun at the home of three Hispanic men who shared the residence in a rural area of western Louisiana. Mr. Mathis’ home was across the street from the victims’ house. After hearing two shots, the victims fled their house. Once outside, the victims watched as Mr. Mathis fired a third shot into the trees and then entered the house, left briefly, and then returned. Minutes later, the house was engulfed in flames as Mr. Mathis exited the house. Subsequent investigation determined that the fire started in the kitchen where the victims had seen Mr. Mathis. Mr. Mathis admitted that his crime was motivated by the victims’ race and national origin and was intended to interfere with their right to live in their home.

Although this matter did not involve a real estate professional or a real estate transaction, it is important for all real estate professionals to remember that the federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Real estate agents who violate the Fair Housing Act face only civil (monetary) damages and not prison time. The case against Mr. Mathis was different for (hopefully) obvious reasons.

Source: U.S. Department of Justice press release (portions of press release used with permission)

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To learn more about fair housing issues (along with a variety of other real estate topics), please visit us at www.123ConEd.com. We are the leading online provider of Michigan real estate continuing education. All of our courses are fully approved and properly certified by the State of Michigan, and are offered online.

Copyright © 123 ConEd LLC 2009. All rights reserved.

Well the new website is up and I am very pleased with it. Please feel free to roam around on it and if you have any comments or questions I would love to hear them. We have some great new features on there including a free home search specified to your criteria. As new homes come on the market that match your criteria, they will automatically be emailed to you. This is a FREE service! Check out our new website at www.robertdowding.com and let us know what you think! Happy Friday all!

WASHINGTON - Thousands of first-time home buyers will be able to get short-term loans so they can quickly make use of a new $8,000 tax credit to pay for some of the costs of buying a home.

The Federal Housing Administration on Friday released details of a plan in which borrowers who use FHA loans can get advances from lenders that let them effectively receive the credit in advance, so they don't have to wait to get the money from the Internal Revenue Service.

Most borrowers will still have to come up with the FHA's required 3.5 percent down payment, unless they work through a state or local housing agency or an approved nonprofit.

Ten states have such programs in place, according to the National Council of State Housing Agencies.

But there are many other potential uses, such as for closing costs and fees, or to beef up the down payment beyond the minimum level.

The FHA, which insures about a quarter of new home loans, is projected to guarantee about 2.2 million loans in the next budget year.

Any buyer who has not owned a home in the past three years is considered a first-time buyer and eligible for the program. Borrowers can claim the credit by filing an amended 2008 tax return or can wait for their 2009 return.

The change "will present an enormous benefit for communities struggling to deal with an oversupply of housing," Housing Secretary Shaun Donovan said in a statement.

The tax credit was included in the economic stimulus package signed by President Barack Obama in February. It is not available to individuals with incomes above $95,000 or couples with incomes above $170,000 and it expires Nov. 30.

Real estate agents and home builders generally welcomed the change.

Jerry Howard, CEO of the National Association of Home Builders, called it a "great step in the right direction." On Wall Street, shares of such builders as Toll Brothers and D.R. Horton rose on the news.

Still, some real estate agents were concerned that many buyers won't benefit at all if they can't use it for a down payment - a big hurdle for many first-time buyers.