The Illinois Department of Human Rights has reached a $120,000 settlement with Coldwell Banker LLC over allegations of housing discrimination against recipients of Housing Choice Vouchers, often called Section 8.

The department said it is the largest monetary settlement secured for the state through a department-initiated charge. The agreement resolves eight charges against Coldwell Banker and its agents alleging discrimination based on source of income.

One charge was filed by the department and seven were filed by Housing Rights Initiative, a nonprofit organization that conducts fair housing testing. Coldwell Banker also agreed to pay Housing Rights Initiative $105,000 to settle its charges. A separate charge filed by an individual was settled privately in a separate agreement.

The department said Coldwell Banker LLC is one of the nation's biggest real estate brokerages, with multiple branch offices in Illinois.

What the charge alleged

The department-initiated charge alleged that Coldwell Banker systemically discriminated against prospective tenants with Section 8 in Illinois based on their source of income, and that it did not adequately supervise its real estate brokers to prevent such discrimination.

According to the charge, Coldwell Banker agents refused to show rental properties based on source of income and told prospective tenants that property owners would not accept a Section 8 voucher.

Terms of the settlement

In addition to the monetary settlement, Coldwell Banker agreed to:

  • Have all licensed agents, realtors and brokers at the four branch offices named in the charges undergo fair housing training — more than 400 agents in total;
  • Establish a fair housing policy that specifically prohibits source-of-income discrimination in its Illinois offices;
  • Display a fair housing statement and posters in those offices;
  • Designate a representative to help handle voucher-related issues in connection with rentals.

"For too many people, finding safe, stable and affordable housing is already an uphill battle," said IDHR Director Jim Bennett. "No one should face additional barriers simply because they rely on a housing voucher or another lawful source of income to pay their rent." Bennett said the settlement "sends a clear message that Illinois will not tolerate unlawful practices that make securing housing even harder."

"Fair housing enforcement is about more than holding the real estate industry accountable. It's about ensuring that every family has a fair shot at putting a roof over their heads," said Aaron Carr, founder and executive director of Housing Rights Initiative.

Background on the law

The Illinois Human Rights Act was expanded to protect against discrimination related to source of income in housing and real estate transactions, effective January 2023. The act defines source of income as "the lawful manner by which an individual supports himself or herself and his or her dependents."

How to file a charge

The department said any Illinoisan who believes they have been a victim of discrimination can file a charge within two years of the date of the incident (effective Jan. 1, 2025) or within one year of a housing violation. To file a charge, call (877) 236-7703, or 7-1-1 for TTY users, or visit dhr.illinois.gov/filing-a-charge.

Source: the original release