Discrimination is an ugly thing, but so is unlimited power. When you think about it, prejudice is one of the manifestations of power.

And that's why it's wrong for the federal and state governments to give special powers to fair housing groups.

In trying to right the wrongs of housing discrimination, fair housing groups have been given seed money to target real estate professionals and landlords for violations. If they see one, they can shake the company or landlord down for cash, and threaten litigation if they don't get a check fast.

Imagine Dog the Bounty Hunter negotiating a cash settlement with felons for their release, and you've got a pretty good idea of what happens.

If the targeted companies or individuals don't pay whatever fines the fair housing group demands, the case moves forward at the state and/or federal level in a lawsuit. Damages are awarded to the fair housing group, not the person or persons who were actually harmed.

And the demands for settlements can be ridiculously steep -- millions for steering violations levied against Coldwell Banker Residential's Chicago Gold Coast, an NRT company, and $4,000 against a California man named Dan Bader renting part of his house. He advertised in Craigslist that his 480-square foot unit was "perfect for 1 or 2 professionals," which the Fair Housing Council of Orange County felt discriminated against families with children.

What's wrong with this picture is that the fair housing groups have unique powers to enforce fair housing laws. They can act as prosecutor, court and collection agency, but because they are funded by settlements, they have no incentive to issue warnings and accept apologies. They want settlements.

What that means is that other forms of arbitration or punishment won't be used.

In Bader's case, a few minutes of counseling could have easily solved the matter. In NRT's case, the offending real estate agents could have been required to attend fair housing classes, or had their licenses to practice suspended or revoked.

Except that NRT was never told who the offending agents were, nor was the company supplied with any proof that the fair housing violations actually occurred.

And folks, there's something wrong with that. Fair housing groups are either part of the governement or they aren't. If they are vigilantes, they should not be given powers of prosecution or collection. If they are part of the government, they should be regulated.

Published: April 10, 2008

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.