Alabama real estate group fights against lawsuit that alleges racial quotas in board appointments

Alabama real estate group fights against lawsuit that alleges racial quotas in board appointments
Alabama real estate group fights against lawsuit that alleges racial quotas in board appointments

An advocacy group for Black realtors in Alabama is joining in on an ongoing legal battle over the use of racial quotas in some of the state’s public licensing boards.

The Alabama Association of Real Estate Brokers – a trade association and civil rights advocacy organization for Black real estate professionals – filed a motion Friday to intervene in a federal lawsuit that alleges discrimination against a white applicant seeking to join a state real estate board, a woman who acknowledged in court records that she does not work in real estate appraisal.

The American Alliance for Equal Rights sued Gov. Kay Ivey on Feb. 23 for choosing a person of color instead of a white applicant to serve on the Alabama Real Estate Appraisers Board.

The group argued that the white applicant was unfairly impacted by a law establishing the board’s diversity policy, which requires membership to reflect the state’s diversity, and states that no less than two of its nine members must belong to a racial minority group.

That month, Ivey had appointed three white members and three members of color to join the board.

The lawsuit in Alabama is one of at least seven challenges to board composition provisions across the country, including in Louisiana, Tennessee, North Carolina, Montana, Alaska, Arkansas and California.

The Alliance, led by conservative activist Edward Blum, has been challenging diversity efforts across the nation since the Supreme Court’s repeal of affirmative action last summer. In February, the group took aim at the Alabama Real Estate Appraisers Board, which it said was unfairly using racial quotas to determine its membership.

Kyle Herring, a spokesperson for the state real estate brokers trade group, said they decided to get involved because Black professionals in Alabama need representation on state boards.

“Having a racially and otherwise diverse board is crucial for fairness both for the industry and for those who are appraisers or seeking to become appraisers,” Herring told AL.com.

Alabama does not have a state law that requires all public boards to maintain a quota based on members’ race or sex.

However, several professional and licensing boards require that their membership reflect the diversity of the state — whether by gender, race, economic status or geography. Some, like the board for real estate brokers, may also require that a portion of members belong to a minority group.

Alabama Attorney General Stave Marshall denied the allegations of discrimination in an answer to the lawsuit filed in court records in March. But Marshall noted that the state does not — and will not — enforce the board’s diversity requirements, which he said were unconstitutional, served no “compelling government interest” and furthered racial stereotypes.

The white complainant was initially anonymous in the suit, but later filings identified her as Laura Clark, a Prattville resident and member of the American Alliance for Equal Rights, the conservative organization that’s suing. In a statement to the court, the applicant said she does not work in the business of real estate appraising.

The person chosen to serve on the board according to court documents, held a master’s degree, had several years of experience in the field, was an avid volunteer and was involved in numerous professional organizations.

The Alliance asked the court in March to require the governor to withdraw all of his recent appointments and eliminate the board’s quota system.

The judge, R. Austin Huffaker, Jr., quickly denied that motion, but now, advocates say they’re concerned that the board’s diversity policies could still be threatened.

In a recent filing, the Alliance and the state indicated that they are discussing a settlement. If a settlement is reached, both parties could resolve the matter without agreeing to enforce state public board laws – which among other things, request public boards in the state to promote diversity.

In Friday’s filing, lawyers for the state real estate brokers group said such a resolution could impact the appraisal board’s ability to regulate racial bias in the field and ensure equitable outcomes in licensing, investigation and discipline issues.

The group is now seeking to intervene in the lawsuit in an effort to protect the board’s policies.

“Given their authority, having racial minorities and other groups, like women and Alabamians from rural areas, included on the Appraisers Board is paramount,” lawyers for the brokers wrote.

The judge will determine whether the group can move forward in the suit. An update on the proposed settlement is due to the court by May 1.

 
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