The National Fair Housing Alliance (NFHA) and nine other agencies filed a federal lawsuit in October 2020 claiming the Seattle-based real estate brokerage offers its services in predominately white neighborhoods at a substantially greater rate than it does in communities of color.

The brokerage has agreed to pay $4 million to settle the case – including $1 million to fund programs devoted to expanding homeownership opportunities.

Redfin was accused of violating the Fair Housing Act by setting minimum home listing prices in each housing market on its website under which it will not offer any real estate brokerage services to buyers or sellers.

The housing associations sought actual damages, punitive damages, an injunction and attorneys’ fees and costs. The groups also asked the court to require Redfin to train all current and future employees and agents on fair housing laws; monitor the company’s digital platform and its policies to ensure future compliance and retain records to allow for appropriate compliance monitoring.

The plaintiffs and Redfin recently agreed to resolve all claims in the suit. Redfin noted that nothing in the settlement was an admission that it engaged in any conduct alleged in the complaint.

“They agree that this agreement, as a compromise to avoid protracted expenses and litigation, reflects a full and fair resolution of the dispute between the parties,” National Fair Housing Alliance CEO Lisa Rice and Redfin Chief Legal Officer Anthony Kappus said in the settlement agreement. “Plaintiffs and Redfin jointly request that the court retain jurisdiction to enforce the terms of this agreement.”

Redfin has agreed to make multiple national operational changes and enhancements, including eliminating a minimum home price in which it will not offer either Redfin or partner program residential real estate services on its website for five years - beginning one month after the agreement’s effective date.

Redfin also agreed to eliminate the use of partner program thresholds and to design, test and implement a Redfin Price Threshold monitoring and alert system.

“The Redfin Price Threshold monitoring and alert system will be designed to allow Redfin to identify and address instances in which Redfin Price Thresholds in predominantly non-white service regions exceed those in predominately white service regions located within the same business market or business area,” the agreement states.

 Redfin will also provide annual reports to NFHA regarding implementation of the monitoring system.

In addition, Redfin market managers must obtain approval at the director level or above before drawing service regions or re-drawing existing service regions.

Redfin must also:

• Develop and implement a written outreach and recruiting plan for hiring employee agents and contracting with independent agents and partner agents to increase racial diversity in its workforce.
• Adopt and implement an advertising plan that promotes Redfin’s services to prospective sellers and buyers of homes in non-white communities.
• Identify a senior executive to serve as fair housing compliance officer to ensure Redfin’s real estate brokerage policies comply with fair housing laws.
• Develop new fair housing training content for employees, associate agents and partner agents.

The case is National Fair Housing Alliance; Fair Housing Center of Metropolitan Detroit; Fair Housing Justice Center; Fair Housing Rights Center in Southeastern Pennsylvania; Hope Fair Housing Center; Lexington Fair Housing Council; Long Island Housing Services; Metropolitan Milwaukee Fair Housing Council; Open Communities, and South Suburban Housing Center v. Redfin Corp. (U.S. District Court, Western District of Washington at Seattle, No. 20-cv-01586).