HUD called on the real estate industry to “review its ethics training materials and reconsider its public statements” on this topic.
“Sharing crime and school data is incorrectly equated with racism,” Craig W. Traynor, the Department of Housing and Urban Development’s (HUD) Under Secretary for Fair Housing and Equal Opportunity, argued in a new open letter.
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The letter cited an article by the National Association of Realtors titled “Is This a Safe Neighborhood? Don’t Answer That,” and said, “Contrary to public disclosures about the operations of industry leaders, real estate agents and brokers do not violate the Fair Housing Act simply by discussing the prevalence of crime in their neighborhoods or the quality of schools with prospective homebuyers and tenants.”
Both NAR and real estate portals have made a point in recent years of encouraging agents to prevent directing customer inquiries about schools or crime statistics by directing them to third-party resources to avoid expressing subjective evaluations of neighborhoods.
Trainor’s letter characterizes this advice as a result of Biden-era policies, pointing to the 2021 HUD memorandum, “Redressing our Nation’s and Federal Government’s History of Discriminatory Housing Practices and Policies,” which it says is superseded by President Trump’s April 23, 2025 executive order, “Restoring Equal Opportunity and Meritocracy.”
In arguing for permissible disclosure of school and crime statistics, Trainor’s letter cites First Amendment concerns, arguing that “a law that makes it illegal for real estate agents to discuss neighborhood schools and crime would raise serious First Amendment concerns. Indeed, the law states that “within constitutional limits, it is the policy of the United States to provide fair housing throughout the United States.”
Additionally, Trainor emphasized that the agent’s intent is part of the equation in assessing whether steering has taken place, stating:
Case law and the department’s own regulations make clear that statements made without the intent to direct a customer based on the customer’s race or the general racial characteristics of the neighborhood do not constitute unlawful race management. The department’s regulations emphasize that racial steering consists of discouraging, communicating, or acting “because of” race. Discriminatory action taken “because of” a particular factor necessarily involves a deliberate selection that that factor plays some role in social discrimination. [actor’s] thought. “
Mr. Trainor concluded by calling on the real estate industry to “review its ethics training materials and reconsider its public statements” on the subject.
In comments on the letter, HUD Secretary Scott Turner called the Biden-era policy changes “an effort to put into practice the ideology of diversity, equity, and inclusion (DEI).” He also said these changes would result in “less transparency” for both homebuyers and renters, and “threat” real estate agents and agents who “seem responsible” for providing information to their customers.
Mr. Inman requested a response from NAR to the letter and received the following statement:
We appreciate the government’s continued dialogue and guidance on this important issue. As the leading voice for real estate professionals, the National Association of REALTORS® brings deep expertise in fair housing and how it is applied in daily practice. We are carefully considering this letter and its implications for our members and the consumers they serve. We look forward to continued engagement with governments and other stakeholders to ensure clear guidance that supports both compliance and the ability of REALTORS® to effectively serve clients in every zip code nationwide.
The industry group also said it would soon announce a more detailed policy response.
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