2001 Annual Report
Message From the President
We have just completed a milestone year in the life of the Fair Housing Council of Suburban Philadelphia.... the 45th Anniversary of the oldest fair housing council in the United States. Historically, the Council has undergone several name changes, beginning as the Committee for Democracy in Housing and incorporated in 1976 as the Lansdowne-Upper Darby Fair Housing Council. Another change to the Fair Housing Council of Delaware County was made in 1984. Finally, demonstrating the expansion of services to encompass the boroughs external to Philadelphia, the name was changed in 1992 to the Fair Housing Council of Suburban Philadelphia.
The 45th Anniversary of the Council was celebrated with a fun-filled silent auction fundraising party at The Lagoon in Essington, Delaware County. The event was planned and coordinated under the leadership of Marion Murphy, Chairperson of the Board's Fundraising Committee, ably assisted by Board member Elaine Saraceni. Past presidents of the Board were recognized. Especially acknowledged was Margaret Collins, broker of Suburban Fair Housing, Inc. the pioneer real estate firm that sold houses in suburban Philadelphia on a non-discriminatory basis for 20 years until it decided to close in 1976. This trip down memory lane reminded us of the long struggle that has taken place and still continues to be necessary to assure housing access for all. The event also achieved one of the fundraising goals of the 1999 Planning Advance. Increased financial support and expanded membership on the Council are essential to continuing the Council's positive achievements.
With the rest of the nation, the Council was stunned by the September 11th tragedy and the threat on our democratic way of life. We mourn for those who died and for their families and friends, some of whom are known to some members of the board. We are reminded also that as the law requires, we must remain alert to the importance of assuring that housing discrimination is not practiced against persons based on their national origin.
On behalf of all members of the board and staff I thank you for your support and urge your continued advocacy in keeping our democracy alive through supporting the cause of fair housing.
Jean E. Moore, Ed.D., ACSW
President, Board of Directors
Jim Berry, Executive Director, FHCSP
Dr. Jean Moore, President, FHCSP
Education Report
The Council’s Education program is one of its most important programs. Through our educational activities we disseminate information to consumers, housing counselors, advocates, government employees and housing providers. We all know that information is power. Without information individuals cannot know what their rights and responsibilities are under the law. Fair Housing is a Civil Rights law with very little public enforcement. Housing discrimination today rarely occurs in the blatant ways that it did a decade ago. Now it usually happens with a smile and a handshake. The Council attends and hosts educational programs, and prepares educational materials so that individuals can recognize housing discrimination when they encounter it, so that housing counselors can recognize it when their clients encounter it, so that government employees understand the ramifications of housing discrimination on their constituents, and so that housing providers understand their responsibilities under the law.
This year, Council staff spoke at 47 different agencies and events and more than 1,480 individuals were trained in Fair Housing. The following is a list of the many events:
Delaware County First Time Homebuyers Program (12 sessions) Delaware County Housing Authority Section 8 Voucher Briefings (9 sessions) La Comunidad Hispana, Kennett Square Women’s Center of Montgomery County Fox Valley Condominium Association Association for Delaware County Real Estate Assessors Pressing Issues in Fair Housing 2001 Temple Real Estate Institute Chester Economic Development Authority Delaware County Housing Voucher Choice Program for Landlords Chester County Housing Voucher Choice Program for Landlords Montgomery County Housing Voucher Choice Program for Landlords Housing Opportunities of Northern Delaware Community Association Institute Woodbrook House Apartments Chester Homebuyer Fair Delaware County Fair Housing Task Force (2 sessions) Darby/Lansdowne Rotary Club Local Housing Options Team Chester Homeowners Seminar (2 sessions) County Office of Services for the Aging Information and Referral Task Force Homeless Services Coalition The Hankin Group (2 sessions) Delaware County Housing Authority DGC Corporation
On Friday April 6, 2001 FHCSP hosted a workshop “Pressing Issues in Fair Housing 2001” to celebrate National Fair Housing month. This was a practical workshop for government employees, elected officials, housing counselors, non-profit employees and all others interested in a better understanding of fair housing issues as they relate to our communities. The topics presented at this year’s workshop included: Predatory Lending and How to Enforce Violations by David Scholl, Esq., How to Assist Persons with Disabilities by Patrick Comorato of the U.S. Dept. of H.U.D., and Insurance Redlining in the City of Chester by Jan Chadwick of FHCSP.
This year the Council published two issues of the publication Delaware County Fair Housing News. This publication is currently mailed to 1,692 industry professionals and advocates in Delaware County and receives rave reviews from various recipients. This publication is sponsored by a grant from the Delaware County Office of Housing & Community Development.FHCSP published three issues of its fair housing newsletter Fairways this year. This newsletter once referred to as the “cutting edge of fair housing issues in the region” by Tri-County MLS, currently has a circulation of 1,112 members, consumers, housing providers, government employees, and fair housing advocates across the nation.
Two meetings of the newly resurrected Delaware County Fair Housing Task Force were held in 2001. The purpose of this Task Force has been to gather information about impediments to fair housing choice in Delaware County; develop an action plan to address the impediments identified; and disseminate information that will help you deal with and remove impediments to fair housing.
In 2001, FHCSP created four new fair housing educational booklets. We now have a full array of educational materials available free of charge: Non-Discriminatory Rental Practices: A Fair Housing Guide for Apartment Management; A Fair Housing Guide to Homeowners Insurance; Need a Loan? Would you like some extra money? Don’t Lose Your Home! (a guide about predatory lending); and A Fair Housing Guide for Persons With Disabilities. In addition to these materials, the Council also has fair housing materials in Spanish, Chinese, Korean, and Vietnamese.
Finally, in the year 2001 Council staff assisted more than 750 people with information and referral requests over the telephone.
Enforcement Report
FHCSP’s educational programs are at the core of the Council activities. Yet doing education without also having investigational tools to follow-up complaints along with enforcement mechanisms to assure fair housing compliance, would make our educational activities worthless. FHCSP’s programs of education and enforcement go hand-in-hand.
This year FHCSP spent considerable time working on a Fair Housing Initiatives Program Grant from the U.S. Department of Housing & Urban Development through their Private Enforcement Initiatives Program. This funding helps FHCSP continue its complaint testing program and to test for compliance with fair housing laws throughout the housing industry.
In addition, FHCSP completed a contract with the City of Chester to test local homeowner’s insurance agents for complaince with Fair Housing Laws. Unfortunately, FHCSP found that 60% of the tests showed evidence of differential treatment.
FHCSP Sues Prudential Insurance for Redlining African American Neighborhoods
On October 23, 2001, the Fair Housing Council of Suburban Philadelphia (FHCSP), the National Fair Housing Alliance (NFHA), Housing Opportunities Made Equal of Richmond Virginia, the Toledo Fair Housing Center, and Metropolitan Milwaukee Fair Housing Council filed suit in federal district court in Washington, D.C. against Prudential Insurance Company of America and Prudential Property and Casualty Insurance Company (Prudential) for violations of the federal Fair Housing Act. The suit is based on ongoing evidence that Prudential continues to engage in pervasive discriminatory practices and policies that restrict, limit or deny homeowners insurance in predominantly African American, Latino and integrated neighborhoods in the United States.
“Despite industry-wide awareness that age and value restrictions violate civil rights laws, Prudential persists in using standards that intentionally hurt homeowners and damage neighborhoods throughout the United States,” said Shanna Smith, Executive Director of NFHA. “Since the 1970s, Prudential has been repeatedly put on notice by fair housing and community groups that insurance discrimination is prohibited by the 1968 federal Fair Housing Act. Yet the company continued to apply underwriting standards, policies and practices that illegally deny equal insurance protection.”
In Suburban Philadelphia, matched paired tests comparing the predominantly African American West End of the City of Chester with predominantly white neighborhoods surrounding Chester verified the differential treatment. Some examples of the differences encountered by testers included:
An African American tester whose home was selling for $33,000 was told their property must be worth between $75,000 and $100,000 to be qualified for insurance while the white tester was given a quote for a home with a selling price of $62,000. An African American tester was quoted a market value policy costing 98% more than the replacement cost policy quoted the white tester An African American tester was told they would only qualify for a market value policy whereas the white tester was offered a replacement cost policy.
“Access to affordable insurance is essential for homeownership, business and commercial development and urban redevelopment initiatives,” said James Berry, Executive Director of FHCSP. “If insurance is not available, or is available only on unfavorable terms and conditions, efforts to achieve fair housing, to nurture economic opportunity, and the basic rights of citizenship are undermined.”
In 2001, FHCSP settled complaints against 3 housing providers. The McKee Group voluntarily entered into an agreement resolving a dispute involving FHCSP’s claims that the McKee Group failed to construct dwelling units at Golf View Estates and Fox Hill Farms in complete compliance with the accessibility requirements for new construction under the federal Fair Housing Act. As part of the settlement, the McKee Group will mail a letter to each current condominium owner at Fox Hill Farm and Golf View explaining that the units were not designed and constructed in a manner that completely complies with the Fair Housing Act’s accessibility requirements.
The owners may then opt to have the McKee Group correct the defect(s). The McKee Group will make the necessary arrangements for the construction work and bear all the costs for that work. In addition, owners who have already incurred expenses correcting the defects shall be reimbursed for those expenses.
For those units where the homeowners did not wish to have the defects on their units corrected, an escrow account will be established. The McKee Group will administer this fund and use it to pay for construction work on units with accessibility defects that change ownership. This account will be in effect until September 2003.
In October, FHCSP settled a familial status complaint against Creek Bank Apartments in Eddystone, and the owners, DGC Development Group and Giuseppe and Mariano Pecorari (DGC). Without admitting guilt, DGC agreed to settle the complaint, and do the following:
 | Abide by all fair housing laws; |
| Attend a fair housing training session; |
| Place fair housing logo on all applications, contracts, agreements, and letterhead as well as a statement that "all units are shown and made available without respect to color, sex, religion, national origin, familial status or handicap;” |
| Display fair housing posters prominently in each room where rental business is conducted; |
| Advertise using the Equal Housing Opportunity logo; |
| Develop a written policy designed to prevent discrimination in housing in accordance with the Fair Housing Act; |
| Pay the complainant $10,000 and FHCSP $5,000 in compensation. |
Finally, in 2001, FHCSP settled a familial status complaint against Elizabeth & Robert Ruff, owners of a small apartment building in Upper Darby. The Ruffs agreed that their policy of not renting to families with children violated the federal Fair Housing Act. The Ruffs no longer own the apartment building, but have agreed to pay the complainant $2,500 in compensation and should they return to the business managing and renting apartment units:
| Abide by all fair housing laws; |
| Attend a fair housing training session; |
| Place fair housing logo on all applications, contracts, agreements, and letterhead as well as a statement that "all units are shown and made available without respect to color, sex, religion, national origin, familial status or handicap;” |
| Display fair housing posters prominently in each room where rental business is conducted; |
| Advertise using the Equal Housing Opportunity logo; |
| Develop a written policy designed to prevent discrimination in housing in accordance with the Fair Housing Act. |
Once again, FHCSP saw an increase in the amount of complaints of discrimination received this year. The following chart shows a breakdown based on the type of discrimination individuals are reporting.
When the Council receives a complaint, staff members may assist the victim in filing a complaint, help the disabled victim to negotiate a reasonable accommodation or a reasonable modification, refer the victim to an outside agency or private attorney or investigate the site by sending testers to test for compliance with fair housing laws. In addition to complaint based tests, the Council worked on special testing projects this year with the U.S. Department of Housing & Urban Development, the National Fair Housing Alliance, and the City of Chester Economic Development Authority. The following charts show a breakdown of these tests based on the housing type tested and the protected class tested for.
Protected Class
Housing Type/Transaction
Fair Housing Council of Suburban Philadelphia
Statement of Activities
Year Ended December 31, 2000*
Revenues & Support
Government Contracts 171,811
Grants 29,500
Litigation
22,000
Contributions
46,631
Dues
2,175
Consulting
8,750
Total Revenues
$280,867
Expenses
Compensation
119,517
Conferences
719
Consultants
24,122
Copying & Printing
5,424
Depreciation
1,789
Employee Benefits
5,195
Employee Travel
4,750
Fundraising Expense
550
In-kind
18,500
Insurance
506
Memberships, Contrib. & fees
1,341
Office Supplies
2,742
Payroll Taxes
12,350
Postage
2,079
Professional Fees
5,000
Rent
18,625
Repairs & Maintenance
340
Telephone
4,338
Testing
5,866
Training
4,672
Utilities
1,617
Total Expenses
$240,042
Change in Net Assets
$40,825
Net Assets—January 1, 2000
$126,652
Net Assets—December 31, 2000
$167,477
*This is an audited income statement as of December 31, 2000. The Council’s financial records are audited yearly by Ostroff, Fair & Company, P.C., Certified Public Accountants. A final audited Statement of Activities for the year 2001 will be available by July 2002.
The Fair Housing Council of Suburban Philadelphia would like to thank its many individual and corporate supporters who have made the year 2001 activities possible.
In addition special thanks to:
The U.S. Department of Housing & Urban Development Delaware County Office of Housing & Community Development Chester Economic Development Authority Lower Merion Township Department of Planning and Community Development Philadelphia Foundation National Fair Housing Alliance Liberty Mutual Group Fund
