A regional fair housing advocacy group filed a civil lawsuit in federal court on Thursday for discrimination after a couple from Marin received real estate appraisals nearly 50 percent apart because of their race, according to the complaint.

The Fair Housing Advocates of Northern California filed a lawsuit in U.S. District Court in San Francisco on behalf of Paul and Tenisha Tate-Austin.

According to the action, the Marin City couple remodeled their home purchased for $ 550,000 in December 2016. In a 2020 refinance, the Austins got a $ 995,000 appraisal by Janette Miller from appraisers Miller & Perotti. The San Rafael Company was hired by AMC Links LLC to inspect the home owned by the black couple.

Miller, his firm and the Lehi, Utah Company are all named as defendants. Neither Miller nor AMC Links returned calls seeking comment.

Suspecting the valuation to be low, the Austin’s ordered a second valuation three weeks later by another company. The costume says they staged the house, removing all evidence of their African American culture, such as pictures and art, and patted their white friend to greet the reviewer. The estimate was $ 1.48 million, which roughly matches the median value of a single-family home in Marin County.

“Few of these cases happen, but it has been going on for years,” Julia Howard-Gibbon, a fair housing watchdog lawyer, told the Business Journal. “Evaluators seem to think they should stick to the makeup of the neighborhoods.”

Howard-Gibbon argues that the appraisal should have included “coms”, such as in comparable homes to gauge adequate value, from out of town to get a broader view of what the homes are for in the county. by Marin.

The attorney believes the appraiser was solely influenced by the home owner and minority representation in the unincorporated area of ​​the county.

According to a recent demographic report released in July 2019 by the U.S. Census, the population of Marin County is 85.3% white; 2.8% black; 16.3% Latino; and 6.6% Asian residents.

The plaintiffs, including the defense group, seek unspecified damages.

“As a result of the defendants’ illegal housing practices, as alleged herein, plaintiffs Tenisha Tate-Austin and Paul Austin suffered damages, including loss of housing finance opportunity, economic losses, emotional distress accompanied by physical injury and a violation of their civil rights, ”the legal complaint read. “In addition, the discriminatory housing practices of the defendants lead to a decline in property values ​​in Marin City in general, to the detriment of the plaintiffs. “

The lawsuit says the defendants’ actions violated California’s Fair Employment and Housing Act, which states the following violations: race. “

“We believe Ms. Miller rated our home at a lower rate due to our race and the current and historical racial demographics of the location of our home,” Paul Austin said in a statement. “The selling prices that the appraiser chose to use were not right and guaranteed a drop in the value of our home.”

The advocacy group cites circumstances in which appraisers choose comparisons of other sales of homes that are much closer to the property being appraised if they are in a black or Latino census tract, noted. Executive Director Caroline Peattie.

“We believe that is exactly what happened with the valuation of the Austins,” she said, further explaining that using comparisons of other sales of properties located exclusively or primarily in Marin City results in a biased and race-based valuation of the property. This bias occurs when the selection of comps in areas historically devalued by discrimination perpetuates and exacerbates the undervaluation of black-owned homes in black neighborhoods, the complaint adds.

North Bay realtors in three counties have heard a few cases of this type of court challenge, including a notable one in Long Island, NY, which has alerted the National Association of Realtors. Labeled “Long Island Divided,” Newsday reported in November 2019 that it had carried out a three-year sting operation that resulted in 86 tests showing bias in the booming real estate sector.

“It’s something that the whole real estate community grapples with with this diversity issue, this equity issue,” said Carol Lexa, Compass Healdsburg real estate broker and past president of the North Bay Association of Realtors.

In 2020, the national association also defined new guidelines to guard against alleged discrimination against minorities.

“It’s something we all take very seriously,” Lexa said.

Marin City, located southeast of Mill Valley and northwest of Sausalito, was populated in the 1940s by those who migrated to work in the Sausalito shipyards. Ironically, the Austines’ address at 20 Pacheco St. is in Sausalito.