NAR Is Criticized for Donating to Anti-LGBTQ+ Candidates

Can a politician be "pro-housing" and also be in favor of discrimination which violates Fair Housing laws? Should Realtors donate to a candidate who doesn't support our Code of Ethics?

The National Association of Realtors (NAR) is one of the biggest donors to political candidates and incumbents, donating only to those deemed to be “pro-housing.” Realtor Political Action Committees (RPACs) are run at the local, regional and state levels. These RPACs are charged with identifying candidates for public office and supporting them with funds.

The LGBTQ+ Real Estate Alliance is one of the several diversity groups in the real estate industry,  and it is leading an effort they call “Stop Hate in Real Estate” challenging donations by some Realtor associations to candidates who push laws which violate both Fair Housing laws and the Realtor Code of Ethics, both of which prohibit discrimination against a person or persons “on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.”

For example, the Florida Realtor association and its RPAC donated $200,000 to Gov. Ron DeSantis, despite his well-known anti-LGBTQ+ policies such as the “Don’t Say Gay” law. Here in Colorado, our Realtor association donated to three members of our General Assembly who have since sponsored an anti-trans bill. Knowing that, will those incumbents receive Realtor donations in the next cycle? When interviewed, are candidates questioned and judged on the topic of Fair Housing?

NAR itself is a member of the Real Estate Alliance, and 29 state and local Realtor associations (none in Colorado) are listed as association partners on the Alliance’s website. Supporting LGBTQ+ rights and issues is to be expected from Realtor associations, because discrimination by Realtors would not only be a federal and state crime, it would violate Article 10 of the Code of Ethics. The Alliance calls its campaign against donating to candidates who favor LGBTQ+ discrimination “The Article 10 Rule.”

The Alliance’s rationale is simple. If a Realtor is prohibited from discriminating, how can Realtor associations support those politicians who do discriminate? It is therefore asking that before endorsing or donating funds, Realtor associations ensure that candidates or incumbents have not engaged in promoting discriminatory bills and laws. If they are identified with such activity, then they should not get funding, even if they are otherwise “pro-housing.”

The Alliance has addressed similar issues in Texas and has its Article 10 Rule has been endorsed by Realtor associations in Washington State, Washington D.C. and Palm Springs. Here is the Alliance’s vision and mission from their website:

I sent an email on this topic to the chairs of the relevant committees of both the Denver and Colorado Realtor associations last week but haven’t heard back.

My writing ends here. For a deeper dive, copied below is a handout from the LGBTQ+ Real Estate Alliance spelling out their “Article 10 Rule” talking points:

What is Article 10?

·       Article 10 of the Realtors Code of Ethics addresses that members of the National Association of Realtors shall not discriminate. It was amended in January of 2014 to make sexual orientation and gender identity protected classes. Article 10 of the Realtors Code of Ethics reads in part:

Realtors^® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. Realtors^® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.

What is RPAC?

·       The Realtor Party, as it is known, is the Political Action Committee for the National Association of Realtors and its 1.6 million members. NAR is the nation’s largest trade organization.  The Realtor Party describes itself as:

The REALTOR® Party is a powerful alliance of REALTORS® and REALTOR® Associations working to protect and promote homeownership and property investment. The REALTOR® Party speaks with one voice to advance candidates and public policies that build strong communities and promote a vibrant business environment.

How does RPAC funding work?

·       It is a complicated process, but members of the National Association of Realtors are automatically “opted in” for at least a $25 donation. It is not straightforward at membership renewal or joining that you can opt out.

·       From there, there are different levels of support at the local, regional and state levels along with national.

·       It has a separate governing body from the National Association of Realtors even though it is made up of members and receives its funding from members.

·       For more, I suggest calling the Realtor Party at 800-874-6500.

Explain the “Article 10 Rule”?

·       How can the Realtor Party claim to “advance candidates and public policies that build strong communities…” if they support those who discriminate and tear communities apart?

·       Though they can be sanctioned for discriminatory behavior,  Realtors through their local, regional, and state RPACs are providing financial support for elected officials who are discriminating as they write and support anti-LGBTQ+ bills in statehouses across the nation. Many are also discriminating against the Black, Hispanic, AANHPI communities as well.

·       Realtors are therefore held to a higher standard than those elected officials and candidates their own lobbying group supports. It makes no sense.

·       That is why we launched a campaign to have NAR and EVERY state, regional and local Realtor association adopt our “Article 10 Rule.” We are asking that before distributing funds or support, RPACs ensure that candidates or elected officials are not engaged in discriminatory behavior. If they are, or have a history of, or refuse to support a commitment to protect all NAR protected classes, then they do not get funding.

·       These officials should be held to the same guidelines that Article10 of NAR’s Code of Ethics

When did the “Article 10 Rule” campaign begin?

·       In June 2022, LGBTQ+ Real Estate Alliance CEO Ryan Weyandt and then President Dave Gervase sent a letter to then NAR President Leslie Rouda Smith and Realtor Party Director Hagan Stone, calling on NAR and RPAC to cease funding local, state or nationally elected officials or candidates who participate in anti-LGBTQ+ rhetoric or publicly support or vote for anti-LGBTQ+ bills.

Did NAR respond?

·       Leslie responded and explained that “National RPAC is a voluntary program, and its mission is to ensure the association engages in a nonpartisan way on behalf of members and consumers. Disbursement decisions are a locally led process, operating independently of NAR and governed by its Trustees.” 

·       In good faith we invited RPAC senior leader David Alan Cox to speak at our October conference to learn about their rationale.

·       When we learned that Florida Realtors endorsed Governor Ron DeSantis and funded his campaign in September 2022, we pulled David’s invite.

Why did the Alliance call for the Florida Realtors and its RPAC to pull support of Ron DeSantis?

·       In September 2022, LGBTQ+ Real Estate Alliance has called on Florida Realtors^® and Florida Realtors PAC to pull its endorsement of Governor Ron DeSantis based on his repeated discriminatory actions towards diverse groups including the LGBTQ+ community.

·       They also donated several hundred thousand to his campaign.

·       He has been at the forefront of anti-LGBTQ+ rhetoric and his “Don’t Say Gay” is plain and simple discriminatory. 

·       This was a HUGE slap in the face to our more than 300 members in Florida, who are almost all members of Florida Realtors. Florida has the second the greatest number of Alliance members behind California.

What was Florida Realtors response?

·       Nothing

Now you are addressing concerns in Texas?

·       In April 2022, we asked Texas Realtors President & CEO Travis Kessler to stand up and work to ensure that those elected officials who discriminate are not supported by TREPAC. This includes several state Senators and Representatives, Governor Greg Abbott, Lieutenant Governor Dan Patrick, and Attorney General Ken Paxton, who have authored or supported multiple discriminatory bills against the LGBTQ+ community.

Did you hear from Mr. Kessler?

·       He had a conversation with our current President Erin Morrison along with member of his own Diversity Committee. Erin is a Realtor based in Austin.

·       He encouraged those who want to impact change should get involved and ultimately be appointed as a RPAC Trustee, which, by the way, likely “requires” substantial donation levels and a few years of service.

·       Essentially, unless those who want to stop discrimination are voted into local leadership, Texas Realtors and TREPAC will continue supporting discrimination.

Why is your effort so important?

·       NAR is the nation’s largest trade group with 1.6 million members. It’s a lobbying machine led by RPAC. It touts itself as “nation’s largest direct contributor to candidates that stand up for American homeowners and individual communities.” Realtors have a huge presence, and it is time to put the power of our industry behind making sure NO ONE in our nation is discriminated against.

·       Too many enthusiastic RPAC supporters have blinders on. As we’ve heard, they believe RPAC “needs to stay in its lane.” That means if a candidate supports Fair Housing or is pro-Realtor, we will consider them. It doesn’t matter if they discriminate. It doesn’t matter that their discrimination may damage communities, create barriers for financial stability and generational wealth, which all go against our industry’s desire to ensure homeownership for all. These results are EXACTLY what the Realtor Party claims to stand for.

How prevalent are anti-LGBTQ+ bills and what is their impact?

·       The past several years have seen an explosion of anti-LGBTQ+ bills in state houses across the nation including more than 340 that have been introduced already in 2023. There were 315 and 191 discriminatory anti-LGBTQ+ bills introduced in 2022 and 2021, respectively¹. The ACLU is currently tracking more than 435 anti-LGBTQ+ bills in the U.S. 

·       The impact of these bills is having a profound impact on the LGBTQ+ community. More than half of LGBTQ+ adults (51%) reported that discriminatory bills and rhetoric moderately or significantly affected their mental health or made them feel less safe¹. The number jumped to 81% for transgender people¹ (Center for American Progress: Discrimination and Barriers to Well-Being: The State of the LGBTQI+ Community in 2022, January 12, 2023)

·       Nearly 70% of LGBTQ+ Real Estate Alliance members believe that the current number of anti-LGBTQ+ bills being passed or discussed in statehouses around the nation will negatively impact the financial stability of LGBTQ+ people. Alliance members also have shared how these bills are forcing LGBTQ+ people and those with LGBTQ+ children to consider or actually move from their homes for safer regions and states.

·       I can put you in touch with several of our members who are dealing with ostracized LGBTQ+ clients or parents with LGBTQ+ children.

Is the LGBTQ+ community a growing force in homeownership?

·       It is important to recognize that almost everyone in the U.S. already loves and/or is very close to an LGBTQ+ person.

·       The documented LGBTQ+ population is growing as a February 2023 Gallup poll found that the presence of LGBTQ+ adults in America has risen to 7.2% from 5.6% in 2020. It was 3.5% in 2012 and grew to 4.5% in 2017.

·       But because society continues to be more and more welcoming, the documented percentage of LGBTQ+ community members steadily rises in younger generations

o   Gen Z (born 1997-2003)                        19.7% LGBTQ+     

o   Millennials (1981-1996)                         11.2%

o   Generation X (1965-1980)                     3.3%

o   Baby boomers (1946-1964)                   2.7%

o   Traditionalists (before 1946)                   1.7%

·       The U.S. Census recently shared there are 1.2 million same-sex households in the United States, 710,000 were married couples with 500,000 unmarried. The number of households is up from 550,000 in 2008. Many observers believe the number of LGBTQ+ households is low as unmarried couples are hard to track.

·       UCLA’s Williams Institute reports that the LGBTQ+ homeownership rate is 49.8% which is far lower than the U.S. Census reports for the national average of 64.6%.

ABOUT THE LGBTQ+ REAL ESTATE ALLIANCE

·       We are a 501(c)6 non-profit dedicated to empowering the LGBTQ+ community on their path towards and enjoyment of homeownership.

·       We launched in June 2020 led by top real estate agents, brokers, brand leaders, lending and title professionals along with members LGBTQ community and allies.

·       Membership opened on October 1, 2020.

·       We strive to improve the professional lives of our members while providing consumers with the proper resources to assist in buying, selling and enjoying their home.

·       Our advocacy platform includes:

o   Growing LGBTQ+ homeownership levels

o   Eliminating housing discrimination based on sexual orientation and gender identity

o   Passage of the Equality Act