Chapter 12 - Fair Housing Laws

Question 1

Civil Rights Act of 1866

Answer 1

Enacted after the Civil War and slavery was abolished:

• -All persons born in the US are considered US citizens
• -Citizens have the right to sue, be party to a contract, give evidence, purchase, sell, lease, hold and convey personal & real property
• -Illegal to deny people based on their race - banned discrimination when it came to housing including the use, sale, lease, or transfer of both real & personal property
• **If a claim is made, it goes directly to the Federal Courts

Question 2

Federal Housing Act (FHA)

Answer 2

group of laws that broaden the original group of people that cannot be discriminated against, when it comes to housing. The laws that make up the entire act are the Civil Rights Act of 1968, the Fair Housing Amendments Act of 1974, the Fair Housing Amendments Act of 1988, and the Housing for Older Persons Act (HOPA)

• -illegal to refuse to rent, sell or negotiate with any person
• -cannot change the terms/conditions for different individuals as a tool to discriminate
• -illegal to state or advertise that the property has restrictions
• -illegal to tell an interested prospect that a property is not for sale/rent when in fact it’s available
• -blockbusing & redlining are illegal
• -illegal to deny a person entry into a multiple listing service

Question 3

Blockbusing

Answer 3

The practice on the part of unscrupulous speculators or real estate agents of inducing panic selling of homes at prices below market value, especially by exploiting the prejudices of property owners in neighborhoods in which the racial make-up is changing or appears to be on the verge of changing.
–practice of encouraging a person to sell their home based on the fear their home will start losing value as a particular group, generally of a different race, national origin, or religion, start moving into the area.

Question 4

Steering

Answer 4

The practice in which real estate brokers guide prospective home buyers towards or away from certain neighborhoods based on their race. Steering is highly illegal. Steering can be a subtle act such as saying “this is a nice neighborhood.”

Question 5

Redlining

Answer 5

An illegal lending policy of denying real estate loans on properties in older, changing urban areas, usually with large minority populations, because of alleged higher lending risks without due consideration being given by the lending institution to the credit worthiness of the individual loan applicant.
–occurs when lenders predetermine certain areas that they will not lend to based on the makeup of the people in that area.

Question 6

Testers

Answer 6

Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers.
–Hired to reach out and meet with real estate professionals

Question 7

In a real estate deal, are you allowed to disclose the demographics of a potential buyer to your client?

Answer 7

No, you are not allowed to share that information–the decision should be made based on the contract terms being presented by the other party.

Question 8

While you should not allow discrimination in any real estate transactions, which types of properties does the Federal Housing Act (FHA) apply to?

Answer 8

• -Single family homes, if the owner owns more than 3 properties
• -Dwelling with 5+ units
• -Dwelling that is property of the federal government
• -Properties financed via a loan insurance or thru the government
• -Properties that are purchased from a state receiving federal assistance for slum clearance

Question 9

What agency is in charge of administering & enforcing the FHA?

Answer 9

The US Department of Housing & Urban Development aka the HUD - has federal jurisdiction to enforce the Act and it’s the agency that people can go to and file a claim if they feel as though they have been discriminated against.

Question 10

What guidelines does HUD have in place to prevent housing discrimination?

Answer 10

• -prohibits certain words to be used in advertising that are discriminatory, i.e., “exclusive”, “great for singles,” “Homes for the Irish,” “not suitable for handicapped” - should not reference any of the protected classes including race, handicap, national origin, religion, sex, gender, familial status, or age in your advertising
• -prohibits certain types of media or failure to use certain media, i.e., cannot advertise in publications that are only read by certain ethnic or religious groups for the purpose of only attracting those groups
• -Equal Housing Opportunity Poster must be displayed in all Real Estate Broker offices

Question 11

Equal Housing Opportunity Poster

Answer 11

simple reminder that it is against the law to discriminate in real estate transactions on the basis of race, color, religion, sex, handicap, national origin, or family status–reminds clients of their rights.

• -The 11x14 poster MUST be displayed in all Real Estate Broker offices, dwellings that are being offered for rent/sale, vacant land for sale & on construction sites
• -Transactions include the sale, rental, financing, appraisal, & brokerage of housing
• -It includes contact information for the HUD.

Question 12

Civil Rights Act of 1968 aka Title VIII

Answer 12

makes it illegal to participate in any discriminatory activities in real estate transactions on the basis of race, color, religion, or national origin.

Question 13

Fair Housing Amendments Act of 1974

Answer 13

amendment to the Civil Rights Act of 1968 - broadened the groups of protected classes to include sex (+ race, color, religion, & national origin). The intent of the bill was to help protect women.

Question 14

Fair Housing Act Amendments of 1988

Answer 14

Amendment to the Fair Housing Amendments Act of 1974 - broadened the groups of protected classes to include people with disabilities & families with children (+ race, color, religion, national origin, & sex).
–landlords are required to accommodate residents with disabilities, i.e., landlords could no longer refuse housing to people because they required modifications such as widening of a doorway. The modifications are often at the tenants’ expense, but the request cannot be denied.

Question 15

To be protected by the Americans with Disabilities Act, you must be considered one of the following…

Answer 15

1. A person who has a physical or mental impairment that limits 1+ major life activities
2. A person who had a record of an impairment that limits 1+ major life activity
3. A person regarded as having an impairment that limits 1+ major life activity

Question 16

Housing for Older Persons Act (HOPA)

Answer 16

allows for certain housing to be exclusively for older people defined as 55 years old and up (senior living communities). HOPA was necessary because if it was not put in place, housing intended for older people could not deny families with children as they are protected under the Act–amended the familial status clauses that were originally laid out by the FHA.

• -to be covered by this Act, at least 80% of the units must be occupied by a person 55+ & facility must comply with verification rules for occupancy requirements
• -facility must publish & adhere to policies & procedures deemed by the HUD for HOPA
• -facility is NOT required to have significant services & equipment designed for older persons (opened up more options for different kinds of seniors)
• -Visitors of any age may be allowed to stay on a limited basis or be provided with emergency temporary housing, depending on the facility’s stipulations in place

Question 17

What are 3 exceptions to the Fair Housing Act?

Answer 17

1. Owner-occupied dwelling w/ 4 or fewer units - DOES NOT APPLY TO WI LAWS
2. Private Clubs - allowed to restrict its membership and limit the housing that it provides to members (does not offer housing to the general public)
3. Single family housing - rent/sell your single family home - DOES NOT APPLY TO WI LAWS
   * **Real estate agents are NEVER exempt from the FHA

Question 18

What’s the process for submitting a claim through HUD?

Answer 18

1. A claim can be filed at no cost through HUD via phone, mail, or submission thru the online portal (w/in 1 year of the alleged incident)
2. Once a claim has been filed, the claimant will be contacted via telephone by an intake specialist to collect additional info to determine if HUD has the authority to address the claim
3. If the claim is accepted by HUD, the claimant will receive a formal written complaint to sign & send back to HUD. If the claim is not accepted, they’ll close the case under the determination of “no reasonable cause.” If the claimant disagrees with this, they have the option of filing a civil lawsuit.
4. W/in 10 days of receiving the signed form back, HUD will notify the person or entity that a complaint has been made against them.
5. The person accused of discrimination then has 10 days to respond to HUD
6. Then HUD will attempt to bring the parties together to come up with a resolution w/in 30 days - if an agreement can be reached, the parties will sign an agreement. If the HUD feels as though there is a cause, they will charge the accused with breaking the law. The parties then have 20 days to determine if they want the case held in Federal Court or with a HUD Administrative Law Judge. An investigation is completed w/in 100 days and a final decision is expected w/in 1 year. First offenses can be fined up to $10K, up to $25k for second offenses, & $50k for third offenses
   * **Must act within the allotted timeframe, or else the department will dismiss the complaint with no further action taken

Question 19

Megan’s Law

Answer 19

federal law requires law enforcement to make information publicly available about convicted sex offenders living in neighborhoods. Each state is tasked with making sure this info is available to the public, which is typically done through searchable databases.
–this research falls on the buyer, not the agent; you should make your buyers aware of Megan’s Law and their ability to search publicly for this information.

Question 20

How should you, as a real estate agent, respond to questions from your clients about advice on neighborhoods?

Answer 20

You must be cautious how you respond to their questions in order to not violate the FHA, i.e., when asked about the safety of a neighborhood, you should not confirm it, but rather direct the client to the local police department to review crime statistics

Question 21

Equal Rights Program

Answer 21

Protects the welfare, health, peace, dignity, and human rights of Wisconsin residents under residential transactions - all persons shall have an equal opportunity for housing regardless of sex, race, color, sexual orientation, disability, religion, national origin, marital status, family status, age, source of income, ancestry, or status as a victim of domestic abuse, sexual assault or stalking

• -disability includes both physical & mental impairment and addresses the current use of illegal controlled substances in a supervised drug rehab program
• -it is unacceptable to ask a client where they are from or what their ancestry is unless the client volunteers this information

Question 22

Assistance Animals & Housing

Answer 22

A person who requires an assistance animal to perform normal daily activities must be allowed to have the animal as a resident in any house or apartment with reasonable accommodations

1. Animals who do work
2. Emotional Support Animals
   - -Reliable documentation provided by a licensed health professional, including physicians, psychologists, social workers, & other healthcare professionals, can be requested by the landlord if the disability is NOT clearly visible & known
   - -Housing provider is not permitted to ask a disabled person what their disability is; they are only allowed to confirm that the animal is needed to assist with a disability.

Question 23

What are instances in which an assistance animal could be refused?

Answer 23

1. No documentation is provided to confirm the need for the animal for a disability that is not immediately obvious
2. If the animal would present a direct threat to the health & safety of others, be un undue burden, or cause offered services to be significantly altered.

Question 24

Are home lenders allowed to impose more stringent terms or conditions for financing based on the age of the individual applicant?

Answer 24

YES, this is an exemption under the FHA

Question 25

Can you refuse to sell or rent to a victim of abuse, assault, or stalking?

Answer 25

YES, so long as you feel as though there is a direct threat or substantial risk to other people or property. However, refusing to sell or rent to a victim of such abuse must be substantiated by personal knowledge of the validity of such a direct threat (i.e., direct evidence or behavior, intent or action by a person). This is an exemption under the FHA.

Question 26

National Fair Housing Alliance (NFHA)

Answer 26

national organization dedicated to ending discrimination in housing and creating equal opportunity housing for all

• -comprised of 220+ private, non-profit fair housing organizations, and state and local civil rights agencies
• -provides leadership in public policy initiatives, education, community outreach, community development, etc. - this is extremely important because most consumers, buyers, tenants, owners, and landlords don’t understand their rights and obligations under our fair housing laws
• -monitors federal legislation and congressional appropriations and maintains active dialogue with Congress
• -may enforce fair housing laws directly by filing or joining class action lawsuits to protect the rights of affected individuals that lack the resources to sue larger national entities.