New HUD Guidance
On April 24, 2026, the U.S. Department of Housing and Urban Development (HUD) issued a “Dear Colleague” letter advising real estate licensees that discussing neighborhood crime rates and school quality with clients may be permissible under the Federal Fair Housing Act (“FHA”). HUD stated that such discussions, in and of themselves, would not constitute a violation of federal fair housing requirements. HUD’s statement that factual conversations do not violate the law is accurate, but New Jersey licensees should remember that federal and state courts have held that conversations about crime and schools can be used as “code words” for race or national origin, and evidence of intentional steering. As such, real estate licensees should continue to exercise caution when discussing topics related to crime rates, schools, and any neighborhood characteristics with clients, as such discussions could still expose licensees to liability.
HUD’s Fair Housing Act guidance and enforcement priorities does not bar private individuals, fair housing groups, or other regulators from pursuing litigation in federal courts, where judges are not bound by HUD’s guidance. Moreover, New Jersey licensees also remain subject to New Jersey laws, rules, and regulations governing discrimination in the sale, rental, financing and advertising of real property. HUD’s position and the full text of the “Dear Colleague” letter can be accessed here. NAR’s initial report on the letter may be found here.
