STATE OF WISCONSIN Fair Housing Plan Update to the Analysis of Impediments to Fair 2010-2014 Consolidated Housing and Actions to Overcome Plan Them State of Wisconsin •Jim Doyle, Governor Department of Commerce •Dick J. Leinenkugel, Secretary Division of Housing and Community Development • Jim O’Keefe, Administrator Fair Housing Plan Table of Contents INTRODUCTION | WHAT IS FAIR HOUSING? .........................................................1 Historical Overview....................................................................................................1 State Agency Contact................................................................................................2 Purpose of the Plan...................................................................................................2 PART ONE | ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE ............3 Affordable Housing and Fair Housing Issues: Where Is the Line? ...........................3 Fair Housing Law Overview ......................................................................................6 Federal Fair Housing Act ........................................................................................6 Wisconsin Open Housing Law ................................................................................7 Protected Classes ...................................................................................................8 Prohibited Discriminatory Actions in Wisconsin ....................................................10 Exemptions from Federal and State Fair Housing Law ........................................11 Comparison of Wisconsin and Federal Fair Housing Law....................................12 The State Law’s Lack of Equivalency with Federal Law.......................................13 Administration Enforcement and Complaints........................................................14 Other Federal Laws...............................................................................................16 Demographic and Economic Characteristics ..........................................................16 Fair Housing Implications......................................................................................16 The State of Wisconsin in Context........................................................................16 Racial Composition ...............................................................................................17 Household Profiles................................................................................................21 Homeownership ....................................................................................................23 Age Distribution.....................................................................................................26 Disability................................................................................................................26 Income and Employment ......................................................................................27 Transportation .......................................................................................................30 Housing Supply Characteristics ............................................................................31 Education ..............................................................................................................32 Victims of Sexual Assault and Domestic Violence................................................36 Discrimination in Wisconsin.....................................................................................36 Extent of Discrimination ........................................................................................36 Housing Discrimination Complaint Data ...............................................................39 State and Local Resources in the Arena of Fair Housing .......................................40 State Agency Activities..........................................................................................40 Local Resources ...................................................................................................46 Page i Fair Housing Plan An Evaluation of Wisconsin’s Procedures, Policies and Practices in Relation to Fair Housing ...................................................................................................................46 State Laws Relating to Fair Housing in Wisconsin ...............................................47 Other Fair Housing Issues ....................................................................................64 PART TWO | SUMMARY OF IMPEDIMENTS TO FAIR HOUSING CHOICE .........91 State and Federal Government-Related Impediments............................................91 Lack of State Law’s Equivalence to Federal Law .................................................91 Local Land-Use Regulations.................................................................................92 Wisconsin Smart Growth Law Concerns ..............................................................93 Wisconsin Housing and Economic Development Authority’s (WHEDA) Low-Income Housing Tax Credit (LIHTC) Qualified Allocation Plan (QAP) Scoring .................93 Sexual Harassment, Sexual Assault, and Domestic Violence..............................94 Extent of Discrimination Reported ........................................................................95 Private Market Impediments....................................................................................95 Lack of Equal Housing Opportunity in the Mortgage Lending Market ..................95 Online Housing Market..........................................................................................97 Discrimination in the Homeowners Insurance Market...........................................97 Accessible Housing Supply...................................................................................99 Substandard Housing and Overcrowded Housing Conditions............................100 Language Barriers...............................................................................................101 PART THREE | ACTION PLAN / STRATEGIES TO OVERCOME BARRIERS TO FAIR HOUSING ................................................................................................................102 Lack of State Law’s Equivalence to Federal Law..................................................102 Local Land Use Regulations .................................................................................102 Wisconsin Housing and Economic Development Authority’s (WHEDA) Low-Income Housing Tax Credit (LIHTC) Qualified Allocation Plan (QAP) Scoring .................103 Sexual Harassment, Sexual Assault, and Domestic Violence ..............................103 Extent of Discrimination Reported.........................................................................104 Lack of Equal Housing Opportunity in the Mortgage Lending Market...................105 Online Housing Market..........................................................................................107 Discrimination in the Homeowner’s Insurance Market ..........................................107 Housing Stock .......................................................................................................108 Language Barriers.................................................................................................108 Other Actions.........................................................................................................109 Time Frame for Fair Housing Actions....................................................................111 SOURCES...............................................................................................................113 Page ii Fair Housing Plan List of Figures and Tables Table 1 | Comparison of Protected Class Definitions……………………….. 9 Table 2 | Population Distribution in the Upper Midwest…………………….. 17 Table 3 | Population Change from 1980-2007 by Race…………………….. 19 Table 4 | Total Household Size by Race……………………………………….. 22 Table 5 | Homeownership by Race from 2000-2007……………………….... 23 Figure 1 | Homeownership by Race in Wisconsin………………………..….. 24 Table 6 | Homeownership Rate by Minority Status in Wisconsin……..…… 25 Table 7 | Homeownership by Race in the Upper Midwest Sates…..……… 25 Figure 2 | Unemployment Rates for U.S. & Wisconsin…..…………………. 27 Figure 3 | Unemployment Rates for the Upper Midwest………………….... 28 Figure 4 | Median Earnings for Wisconsin Employees……………..………. 29 Table 8 | Means of Transportation to Work……………..……………………. 31 Figure 5 | Number of Homes Sold in Wisconsin from 2001-2008…..…….. 31 Table 9 | Housing Units by Year Structure ……………..……………………. 32 Table 10 | Housing Unit Size Built………..………..………………………….. 32 Figure 6 | Educational Attainment for the State of Wisconsin…….………. 33 Figure 7 | People 25 and Over Who Are High School and / or College Graduates………………..…………………………………………… 34 Figure 8 | Foreign Born Population in the Upper Midwest States…………. 35 Table 11 | Percent of Consistent Adverse Treatment……………………….. 38 Table 12 | Housing Discrimination Complaints Referred to Other Agencies Outside of MMFHC………….……………………………. 39 Figure 11 | Number of Housing Discrimination Complaints from ’04-’09… 40 Table 13 | Comparison of Responsible High-Cost Lending Laws…………. 67 Table 14 | Loan Application Data by Race of Applicant and Loan Type…. 81 Tale 15 | Conventional Home-Purchase Loan Application Data by Race of Applicant and Income………………………………………….. 83