Fair housing organizations have announced a settlement with real estate services company Redfin that could expand homebuying opportunities in communities of color in the Chicago suburbs.
Redfin will make an initial payment of $4 million, with much of it being used by the National Fair Housing Alliance to monitor changes to Redfin’s business practices. Also, within a year of the settlement agreement, Redfin agrees to make an additional payout of $1 million. Michael Chavarria, HOPE’s executive director, said the settlement “brings much needed financial relief to communities harmed by Redfin’s policies while changing those policies to prevent future harm.”
The lawsuit alleged that Redfin’s minimum home price policy violated federal fair housing laws by discriminating against sellers and buyers of homes in communities of color. Redfin will need to extend real estate services to 11% of buyers seeking to purchase homes under those target home sale prices, Petruszak said.