Key Takeaways
- The Rumford Fair Housing Act (1963) was California's first fair housing law, later incorporated into FEHA
- Proposition 14 (1964) attempted to repeal Rumford but was struck down by courts as unconstitutional
- Beginning January 2024, all California real estate license applicants must complete implicit bias training
- Implicit bias training covers recognizing unconscious biases and actionable steps to address them
- Steering, blockbusting, and redlining are illegal under both state and federal fair housing laws
Rumford Fair Housing Act and Implicit Bias
History: The Rumford Act
The Rumford Fair Housing Act (1963), named after Assemblyman Byron Rumford, was California's first comprehensive fair housing law. It prohibited discrimination in the sale and rental of most housing based on race, color, religion, national origin, and ancestry.
Proposition 14 (1964)
Shortly after the Rumford Act passed, opponents placed Proposition 14 on the ballot. This initiative:
- Would have amended the California Constitution
- Gave property owners "absolute discretion" to sell or rent to anyone they chose
- Effectively repealed the Rumford Act
- Passed with 65% of the vote
However, the U.S. Supreme Court in Reitman v. Mulkey (1967) struck down Proposition 14, ruling that it violated the 14th Amendment's Equal Protection Clause by authorizing private discrimination.
Legacy
The Rumford Act's provisions were eventually incorporated into FEHA. The Proposition 14 episode remains an important reminder that fair housing protections cannot be eliminated by popular vote.
Implicit Bias Training Requirement
Beginning January 1, 2024, California requires all new real estate license applicants to complete implicit bias training as part of the Real Estate Practice course.
What is Implicit Bias?
Implicit bias refers to unconscious attitudes or stereotypes that affect our decisions without our awareness. In real estate, implicit bias can lead to:
- Steering clients to certain neighborhoods
- Making assumptions about what clients can afford
- Treating clients differently based on appearance
- Providing different levels of service unconsciously
SB 1495 Requirements
Senate Bill 1495 (signed in 2022, effective January 1, 2024) requires real estate courses to include:
| Component | Description |
|---|---|
| Recognition | How to identify implicit biases |
| Impact | How bias affects real estate transactions |
| Action steps | Practical strategies to address bias |
| Best practices | Fair treatment protocols |
Exam Note: Expect questions about implicit bias recognition and mitigation strategies on the California exam.
Prohibited Practices in Detail
Steering
Steering is directing or influencing clients toward or away from areas based on protected characteristics.
Examples of illegal steering:
- "You'd probably be more comfortable in this neighborhood"
- Showing only homes in certain areas without client request
- Discouraging clients from viewing homes in certain areas
- Making comments about neighborhood demographics
Blockbusting
Blockbusting (panic selling) is inducing sales by suggesting that protected classes are moving into an area and property values will decline.
Examples of illegal blockbusting:
- "You should sell before prices drop—families with kids are moving in"
- Sending mailers suggesting demographic changes
- Cold-calling with fear-based messages about neighborhood changes
Redlining
Redlining is refusing to lend or insure in certain geographic areas based on demographics rather than risk factors.
Examples of illegal redlining:
- Refusing to write loans in certain ZIP codes
- Charging higher rates based on neighborhood demographics
- Requiring additional documentation for certain areas
Fair Housing Best Practices
Real estate professionals should:
- Document equally - Keep records showing equal treatment
- Train regularly - Stay current on fair housing requirements
- Question assumptions - Challenge unconscious biases
- Provide same service - Equal effort for all clients
- Avoid comments - Don't discuss neighborhood demographics
- Report violations - Refuse discriminatory instructions
Fair Housing Testing
Fair housing organizations conduct testing to detect discrimination:
- Sending matched pairs (testers) of different protected classes
- Comparing treatment received by each tester
- Using results as evidence of discrimination
Real estate professionals should assume every client interaction could be a test and treat all clients equally.
Advertising Requirements
All real estate advertising must comply with fair housing laws:
| Requirement | Example |
|---|---|
| No preferences | Cannot say "perfect for young professionals" |
| No limitations | Cannot say "adults only" (unless senior housing) |
| Equal opportunity | Should include equal housing logo or statement |
| Accessible format | Must provide alternatives for disabled persons |
What U.S. Supreme Court case struck down California Proposition 14?
Beginning January 1, 2024, California requires new real estate license applicants to complete training on:
Which prohibited practice involves inducing sales by suggesting that protected classes are moving into an area?