FOR IMMEDIATE RELEASE	CR

THURSDAY, MAY 14, 1998                                                                                                                        (202) 616-2765

                                                                                                                                                                            TDD (202) 514-1888




LARGEST REAL ESTATE COMPANY IN ALABAMA SETTLES RACIAL


DISCRIMINATION CASE WITH THE JUSTICE DEPARTMENT





	WASHINGTON, D.C. -- The largest real estate company in Alabama
will no longer steer prospective African American homeowners to
homes in minority neighborhoods, under an agreement reached today
with the Justice Department, two private citizens and a civil
rights organization.

 	The agreement, filed together with a complaint in U.S.
District Court in Birmingham, resolves complaints that First Real
Estate Corporation engaged in unlawful discriminatory conduct that
violated the Fair Housing Act.  

	In the complaint, the Justice Department alleged that African
American clients were steered toward predominantly minority
neighborhoods while white clients were directed to white
neighborhoods.  It also alleged that potential customers were
steered to company sales agents based on race, and that properties
located in areas with a high minority population were advertised
differently than properties in other areas.

	"We are pleased that First Real Estate has chosen to work

cooperatively with the United States and the private plaintiffs to
assure that the guarantees of the Fair Housing Act are a fact of
life in our community," said G. Douglas Jones, the U.S. Attorney in
Birmingham.  "The decree should serve as a model for all realtors."
	Under the agreement, First Real Estate will:

	not consider the race of a prospective homeowner and
neighborhood in deciding where to show a home;




	assign customers to agents without regard to race;




	modify its advertising so the availability of homes that it
has listed for sale is provided to everyone;




	educate agents and employees of their responsibilities under
the Fair Housing Act; and,




	establish a $100,000 fund to compensate persons who may have
been injured as a result of the company's alleged
discriminatory practices.




	First Real Estate also has agreed to promote fair housing in
the Birmingham metropolitan area by sponsoring clinics for
prospective home buyers and by developing a marketing plan to
promote all communities in the metropolitan area as open to all
races and nationalities.  

	The Justice Department first became involved in the matter
after learning about a private civil suit that was filed in
November 1995, by two African American former sales agents.  The
agents alleged the company only referred African American customers
to them, and discouraged them from showing homes in white areas.  

	In December 1997, the Fair Housing Center of Northern Alabama,
a private organization, filed a private civil suit raising similar
allegations.  The Center will assist First Real Estate in its
efforts to promote fair housing in Birmingham.  

	Today's settlement resolves the two private suits as well as
the Justice Department suit.

 	"The Justice Department is firmly committed to making fair
housing a reality for all Americans," said Joan Magagna, Acting
Chief of the Housing Section of the Civil Rights Division.  "No one
should ever be denied the right to live where they choose simply
because of the color of their skin."		

	The monetary fund will be paid to victims identified through
a claims process conducted by the Justice Department and the
private plaintiffs.  Any person who believes that he or she has
been a victim of race discrimination by First Real Estate should
contact the Civil Rights Division at 1-800-896-7743 or the Fair
Housing Center of Northern Alabama at 205-324-0111.

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