Ch.5 - Fair Housing Laws Flashcards
Fair housing
The federal fair housing act prohibits discrimination in the sale or rental housing on the basis of race, color, religion, national origin, sex, handicap, and familial status
Conciliation
This is an agreement that must protect both the person filing a complaint with HUD and the public interest.
When the person the complaint has been filed against remedies the alleged violation.
What are the actions taken of the conciliation agreement is signed vs breached?
If the agreement Is signed, HUD will take no further action on the complaint
However if HAD has reasonable cause to believe that the agreement is breached, HUD will recommend that the attorney general about suit
Americans with disabilities act (ADA)
This act became a law in 1990.
It mandates that persons with disabilities have equal access to jobs, public Accommodations, government services, Public transportation, and telecommunications
When did the Americans with disabilities act become a law?
1990
*what act became a law?
Blockbusting
Making a profit by persuading owners to sell by telling them that persons have a protected class are moving into the neighborhood.
That will result into negative outcomes such as lowering property values, increase in criminal behavior, or a decline in the quality of the school district
Steering
Channeling home buyers toward or away from homes in certain neighborhoods in order to preserve or alter the make up of that neighborhood
Redlining
Restricting the number of loans in certain areas of the community because it is racial or ethnic makeup
Discriminatory advertising
Advertising that indicates a preference, limitation, or discrimination based on race, color, religion, handicapped, sex, familial status, or national origin
Equal Credit Opportunity Act (ECOA)
This act prohibits lenders from discriminating against applicants on the basis of race, color, religion, national origin, sex, marital status, age, or dependency on public assistance
Home Mortgage Disclosure Act (HMDA)
What is it?
When did it pass?
How often must it be disclosed?
Passed in 1975
Requires financial institutions to maintain and disclose data about home purchases, home purchase preapprovals, home-improvement, and refinance applications involving 1 to 4 unit and multi family dwellings.
Must be disclosed annually
Testing
A simulated housing transaction designed to obtain evidence of differential treatment based on an individuals protected class status
Disparate impact
Policies that are considered to be discriminatory if they have a disproportionate “adverse impact” against any protected class (race, nation of origin, color, religious beliefs, sex, familial status, or disability) when they are other valid non-discriminate options available
If the ALJ decides that discrimination occurred the respondent can not be ordered to do what?
To pay the federal government $60,000 as a civil penalty to vindicate the public interest
What is not a reason to understand fair housing laws?
It is recommended.
Reasons to understand- it is a right, the law, and reduces risk
If a person believes he or she has been discriminated against how long does he or she have to file an HUD complaint?
1 year to file a complaint
When did the first housing laws begin?
With the civil rights act of 1866
Fair Housing Act of 1968
title VIII of the Civil Rights Act of 1968
Prohibited discrimination in housing based on
- race,
- color,
- religion,
- or national origin
Jones v. Mayer
A legislation part that supports the federal fair housing laws
- Ruled that discrimination on the basis of race is strictly prohibited
- This means there can be no exemption or exception with regard to race
Housing and Community Development Act (1974)
The legislation that added sex to the list of protected classes.
Fair Housing Amendments Act (1988)
The legislation that added handicap and familial status to the list of protected classes
How does the Fair Housing Amendments Act (1988) protect physical or mental disability individuals?
A property owner may not refuse to let the person make reasonable modifications to the dwelling or common use areas
Cannot refuse to make reasonable accommodations in rules, policies, practices, or services if necessary for person to use the housing
What are the four legislations that were significant to the federal fair housing laws?
- Fair housing act of 1968
- Jones v. Mayer
- Housing and community development act 1974
- Fair housing amendments act
Who administers the federal fair housing act?
By the office of fair housing and equal opportunity (FHEO)
The Office of Fair Housing and Equal Opportunity is under whose direction?
The secretary of housing and urban development (HUD)
How long does a person have to file a complaint if they feel they were discriminated against and who do they file it with?
They have a year to file a complaint with HUD
What happens during the investigation period of a discrimination complaint filed with HUD?
HUD can attempt to resolve the complaint by getting assurance that the person that the complaint has been filed against will remedy the alleged violation.
How else can a person file a discriminatory complaint and how long do they have?
A person can file a suit in a state or federal court within two years of the alleged violation.
What three federal laws should the American civil rights policy?
- Plessy v. Ferguson (1896)
- Buchanan v. Warley (1917)
- Brown v Board of Education (1954)
When did the Americans with Disability Act (ADA) become effective?
1992
*what act became effective?
What does the ADA mandate a person with a disability to have equal access to?
- Jobs
- public accommodation
- government services
- public transportation
- telecommunications
What are some discriminatory activities in real estate?
Refusing to sell, rent, or negotiate with any person who is a member of a protected class
What are the three specific real estate activities that the fair housing laws prohibit?
- Blockbusting
- Steering
- Redlining
Why is knowing the Federal fair housing laws necessary for a real estate professional?
- It’s the law
- it’s a right
- It reduces risk
How would you avoid discriminatory advertising?
When advertising it is important to have a perspective of all the protected classes.
Ask questions like how you would feel if they were a member of a minority in reading the ad?
If an ad simply described the property itself that it is most likely acceptable
How many cities in Texas have additional protected classes in their fair housing law?
5
In what ways in Texas can discriminatory complaints be filed?
In addition to HUD in federal Court…
- Texas complaints can be filed with the Texas Workforce Commission Civil Rights Division within one year
Community Reinvestment Act (1977)
What does it prevent?
Passed by Congress to prevent redlining
And encourage banks and other lenders under federal oversight to help meet the credit needs of all segments of their communities
Company is covered under HMDA (home mortgage disclosure act) are required to keep what?
Loan Application Register (LAR)
Loan Application Register (LAR)
Required under HMDA
It is where lenders report statistical information each year to ensure that lenders are not restricting loans to certain individuals
What tool have private fair housing groups along with government agencies, developed to uncover housing discrimination?
Testing-
A tester from a protected class will go to a real estate office or view an available unit and see if they are treated differently…
if they have good documentation and recordkeeping this can demonstrate innocence or violations
What do you do when you are faced with questions that are outside your realm of expertise or knowledge?
You should refer questions to people who are experts in that appropriate field
How should you discuss aspects of a home, selling, buying, and listing properties?
- Avoid giving opinions
- Focus on factual statements based on various features within the home
- Explain to the buyer that you ethically and legally cannot recommend housing based upon the protected classes that make up the neighborhood. (Can’t give out demographics)
What should a real estate professional do if the seller is withholding property from a protected class individual?
The real estate professional must not be involved
otherwise the sales person or broker will be found in violation along with the seller
What type of changes my a commercial property make to bring a property into ADA compliance?
Adding ramps to the front entrance or accessible parking spaces,
Widening doorways/isles
Installing elevators
Improving restroom facilities by adding wider styles, higher toilets, or grab bars
List four practices that would be considered discrimination in mortgage lending
- refusing to give a loan or provide loan information
- Refusing to purchase a loan
- Setting different conditions for a loan purchase
- Giving different terms for loans, such as interest rates or fees
Readily achievable
Means easy to accomplish without much difficulty your expense
What is the readily achievable requirement based on?
The requirement is based on the size and resources of the business
What kind of houses were called separate but equal with the supreme court decision?
Racially segregated accommodations
Which fair housing law is violated when an agent shows a white couple properties only in white neighborhoods and African-American buyers in African American neighbors?
Steering
*give an example
And I should never read males only, men only, females only or other like phrases, with one exception what is that exception?
If the ad is describing shared living areas or homes used exclusively as dormitories by educational institutions
Give four examples of words or phrases that would be considered discriminatory and advertising
- couples only
- Empty-nesters
- single person
- no families
- mature individuals
- senior discount
When advertising by newspaper, how would you avoid an impression of racial steering?
Use a wide variety of these papers not just a local or neighborhood paper
The federal reserve board designed the HMDA to accomplish what three requirements?
- help public officials distribute public sector investments
- Discover if financial institutions are serving the housing needs of communities
- Identify where there are discriminatory lending practices
What metric is used to describe if the rate given to the borrower is above a certain threshold of the prevailing rates at the time of application?
Rate spread
What does the community reinvestment act require community banks to do?
It requires federal financial institution regulators to assess the record of each bank and thrift in helping to fulfill the obligations to the community
How can testing be beneficial?
When coupled with the documentation and recordkeeping, it can demonstrate a real estate agencies innocence when faced with the fair housing complaint
Scenario:
What do you do if someone asked to see the Hispanic only areas?
Explain to the buyer that you are ethically not allowed to show them homes passed on ethnic makeup of the neighborhood because that would be violating fair housing laws
What could happen if one of your sellers declines to show a property to minorities or members of other protected classes?
This is illegal. If you proceed then you and the seller could be sued for violating fair housing laws.
