Chapter 18

Question 1

Which of these laws extended housing discrimination protections to families with children and persons with disabilities?

a. Civil Rights Act of 1866
b. Fair Housing Amendments Act of 1988
c. Housing and Community Development Act of 1974
d. Civil Rights Act of 1968

Answer 1

b. Fair Housing Amendments Act of 1988

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b. The Fair Housing Amendments Act of 1988 added disability and familial status to the list of protected classes of individuals. The Housing and Community Development Act of 1974 added sex to the list of protected classes, which is found in Title VIII of the Civil Rights Act of 1968. The Civil Rights Act of 1866 prohibits discrimination based on race.

Question 2

The Fair Housing Act is administered by the

a. Office of Equal Opportunity.
b. Department of Housing and Urban Development.
c. Department of Justice.
d. federal court system.

Answer 2

b. Department of Housing and Urban Development.

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b. The Department of Housing and Urban Development (HUD) handles fair housing complaints on the national level. Most states have enacted substantially similar laws, so often it is the state agency that is involved.

Question 3

The Fair Housing Act does NOT prohibit discrimination on the basis of

a. familial status.
b. national origin.
c. religious preference.
d. sexual preference.

Answer 3

d. sexual preference.

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Sexual preference is not a protected class under the federal law, but it has been added to many city and state fair housing laws.

Question 4

Which of these are exempt from the federal Fair Housing Act?

a. Owner-occupied buildings with no more than four units
b. Buildings subject to the ADA Standards for Accessible Design
c. Buildings that are not publicly advertised as being for sale or for rent
d. None of these

Answer 4

a. Owner-occupied buildings with no more than four units

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a. Other exemptions include single-family housing sold or rented without the use of a real estate professional and housing operated by organizations and private clubs that limit occupancy to members.

Question 5

Real estate professionals may have a legal obligation to comply with the ADA because they

a. often have clients with disabilities.
b. frequently own their own homes.
c. may be employers.
d. may need to require reasonable accommodation in a home they have listed.

Answer 5

c. may be employers.

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c. Many real estate professionals are brokers and employ sales associates and staff; in addition, the real estate office should be accessible to the public, including a person with a disability.

Question 6

A real estate broker sends a bright yellow flyer to all the homeowners in a neighborhood. The flyer contains a reprinted article from a local newspaper describing the future relocation plans of various employers in the region and this statement, printed in bold red letters: “Warning! The failure to sell your property within the next six months could cost you a bundle!” At the bottom of the page was printed the broker’s name, photo, office address, and phone number. Based on these facts, the broker

a. is guilty of steering.
b. is guilty of blockbusting.
c. has committed no offense.
d. has violated the HUD advertising guidelines.

Answer 6

c. has committed no offense.

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c. Although perhaps in poor taste, the broker is simply distributing a published newspaper article to which anyone has access. The broker is also not making any statements about a protected class of people moving into the neighborhood.

Question 7

A newspaper advertisement states, “One-bedroom apartment immediately available. Good neighborhood. Only able-bodied individuals should apply.” Which of these is TRUE?

a. The ad is not permitted under HUD’s advertising guidelines because it discriminates on the basis of disability.
b. The ad is acceptable under HUD’s advertising guidelines.
c. The ad is not permitted under HUD’s advertising guidelines due to the remark, “Good neighborhood.”
d. Newspapers are inherently discriminatory because not everyone can afford to buy them.

Answer 7

a. The ad is not permitted under HUD’s advertising guidelines because it discriminates on the basis of disability.

Feedback
a. The ad discriminates against prospective tenants who are disabled. The remark, “Good neighborhood,” is acceptable pursuant to HUD advertising guidelines.

Question 8

Under what conditions can someone refuse to rent to an African-American on the basis of race?

a. Never
b. If the owner is also living in one of the apartments of a small apartment building
c. If the owner is handling the leasing without the aid of a real estate professional
d. If the owner is a small investor and is selling one of the three houses

Answer 8

a. Never

Feedback
a. Under the Civil Rights Act of 1866, as reinforced by the Jones v. Mayer Supreme Court decision, there are no exemptions that permit someone to discriminate in housing simply because of someone’s race.

Question 9

Under the Fair Housing Act, what is HUD’s first action on receiving a complaint of illegal discrimination?

a. Investigates for reasonable cause to bring a charge
b. Holds an administrative hearing
c. Issues an injunction against the offender
d. Files a civil action in federal district court

Answer 9

a. Investigates for reasonable cause to bring a charge

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a. Within 100 days of the filing of the complaint, HUD either determines that reasonable cause exists to bring a charge of illegal discrimination or dismisses the complaint.

Question 10

One of the provisions of the Fair Housing Amendments Act of 1988 is

a. a repeal of the facilities and services requirements designed to help older persons with physical and social needs.
b. the addition of sex to the list of protected classes.
c. a change that made the penalties for violations more severe, and also added additional damages.
d. the addition of religion to the list of protected classes.

Answer 10

c. a change that made the penalties for violations more severe, and also added additional damages.

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c. The Fair Housing Amendments Act of 1988 expanded federal civil rights protections to familial status and disability. The Act also changed the penalties by making them more severe and by adding additional damages.

Question 11

Under the Civil Rights Act of 1968, what is the time limit to file a housing discrimination complaint with HUD?

a. 100 days
b. 1 year
c. 2 years
d. The same as the statute of limitations for torts committed in the state in which the alleged discriminatory act occurred

Answer 11

b. 1 year

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b. Persons who wish to file a complaint with HUD under Title VIII of the Civil Rights Act of 1968 must do so within one year of the alleged violation.

Question 12

Complaints of discriminatory housing practices filed with HUD will be referred to a local enforcement agency if

a. the federal law is substantially more inclusive than the state or municipal law.
b. HUD determines that an administrative law judge should decide the case.
c. the state or municipal law is substantially equivalent to the federal law.
d. the complaint involves a real estate professional who is the victim of a threat or act of violence because the professional has complied with the fair housing laws.

Answer 12

c. the state or municipal law is substantially equivalent to the federal law.

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c. If a state or local law is substantially equivalent to the federal law, all complaints filed with HUD are referred to the local enforcement agencies.

Question 13

In the context of a dispute before HUD, the term “conciliation” is BEST defined as the

a. equivalent of paying a fine.
b. informal resolution of a dispute by obtaining assurances that the person responding to the complaint will remedy the violation.
c. referral of the matter to a local agency.
d. formal process under which the aggrieved party files a civil action in federal court.

Answer 13

b. informal resolution of a dispute by obtaining assurances that the person responding to the complaint will remedy the violation.

Feedback
HUD can attempt to resolve a dispute informally through conciliation. Conciliation is the resolution of a complaint by obtaining assurance that the person against whom the complaint was filed will remedy any violation that may have occurred.

Question 14

All of these people are considered members of protected classes EXCEPT

a. a member of Alcoholics Anonymous.
b. a visually disabled person with a seeing-eye dog.
c. a person diagnosed with AIDs.
d. a person convicted of the manufacture or distribution of illegal drugs.

Answer 14

d. a person convicted of the manufacture or distribution of illegal drugs.

Feedback
Persons convicted of manufacturing or distributing illegal drugs do not enjoy any protections under the Fair Housing Law, although disability is a protected class. Individuals who are participating in addiction recovery programs are in a protected class of disability.

Question 15

A homeowner decides to rent a spare bedroom in her house to a tenant for $500 per month. When a 24-year-old man asks to see the room, the homeowner refuses, telling him that she will only rent to a woman over the age of 50. The prospective tenant threatens to sue for a violation of the Fair Housing Act on the basis of age. Should the homeowner be concerned?

a. Yes, because the amount of rent being charged is immaterial for purposes of the Fair Housing Act.
b. Yes, because while the homeowner is permitted to exclude individuals on the basis of age or sex, she cannot exclude on the basis of both.
c. No, because the rental of rooms in an owner-occupied single-family home is exempt from the Fair Housing Act.
d. No; because there was no real estate professional involved in this transaction, the homeowner is free to discriminate on the basis of any of the normally protected classes.

Answer 15

c. No, because the rental of rooms in an owner-occupied single-family home is exempt from the Fair Housing Act.

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c. The woman is exempt from the law because she will be renting a single room in her home.

Question 16

A seller tells a real estate broker, “Don’t show my house to anybody not born in the United States.” In this circumstance, the broker

a. must show the house to anyone who wants to see it.
b. must decline to take the listing with that requirement.
c. may take the listing and ignore the instruction.
d. may take the listing and hope that no foreign-born persons ask to see the property.

Answer 16

b. must decline to take the listing with that requirement.

Feedback
b. An instruction to not show the home to someone who was not born in the United States violates the Fair Housing Act. The real estate broker should not take the listing with this requirement. The broker cannot simply ignore the instruction.

Question 17

A neighborhood has a large Asian population. When a Chinese couple came to a broker to look for a home to buy, the broker suggested they look at listings only in that neighborhood. The broker violated the Fair Housing Act because the broker’s actions constitute

a. stereotyping.
b. blockbusting.
c. redlining.
d. steering.

Answer 17

d. steering.

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d. Channeling home seekers toward or away from particular neighborhoods based on national origin, or any of the other protected classifications, is called steering.

Question 18

A pregnant woman who already has two children met with a landlord to view a two-bedroom apartment. The landlord told her that the rules of the building allow only two children per two-bedroom apartment, so a two-bedroom unit cannot be rented to her. Is this a violation of the Fair Housing Act?

a. No, rental standards can include a restriction on the number of occupants in an apartment.
b. No, the Fair Housing Act allows property owners to limit the number of children in a development.
c. Yes, indicating a preference for a certain number of children as occupants is illegal discrimination based on familial status.
d. Yes, until the third child is born, the woman meets the standards for the number of children in the family.

Answer 18

c. Yes, indicating a preference for a certain number of children as occupants is illegal discrimination based on familial status.

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c. Occupancy standards must be based on objective factors, such as sanitation or safety, not number of children.

Question 19

A landlord rented an apartment to a person who must use a wheelchair. The landlord allowed the tenant to install bath rails and replace the bathroom sink vanity with a pedestal sink with lever faucet handles, but the landlord required the tenant to sign a restoration agreement that the accommodations would be restored to their former condition at the end of the lease term. In addition, the landlord required the tenant to pay sufficient funds (over a period of time) into an escrow account to restore the bathroom. Has the landlord violated the Fair Housing Act?

a. No, the landlord can require a restoration agreement and the escrow account.
b. No, the landlord does not have to allow the tenant to make any of these modifications.
c. Yes, the landlord cannot require restoration of the modifications.
d. Yes, the landlord cannot require the escrow account.

Answer 19

a. No, the landlord can require a restoration agreement and the escrow account.

Feedback
The landlord must permit these reasonable modifications, but the landlord can require the restoration agreement and escrow account.

Question 20

An apartment complex is exempt from familial status protection under the Fair Housing Act if the housing is intended to be occupied by

a. at least one person in each unit who is 50 years of age or older.
b. persons 62 years of age or older.
c. persons 55 years of age or older.
d. at least one person who is age 60 or older in 80% of the units.

Answer 20

b. persons 62 years of age or older.

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b. Housing is exempt from the familial status protections if it is intended for occupancy only by persons 62 years of age, or for occupancy in 80% of its units by at least one person 55 years of age or older. Strict rules for ongoing verification and reporting are imposed on this second alternative.

Question 21

For fair housing purposes, what is the definition of the term “disability”?

a. An impairment of mobility that prevents a person from using stairs
b. A physical impairment that requires a caregiver’s assistance
c. An impairment that prevents a person from holding a job
d. An impairment that substantially limits one or more of an individual’s major life activities

Answer 21

d. An impairment that substantially limits one or more of an individual’s major life activities

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d. The definition of the term disability is very broad and focuses on impairments that prevent or restrict a person from performing tasks that are of central importance to most people’s lives.

Question 22

A landlord refuses to rent a vacant apartment to a couple with two small children because he is concerned the children will disturb the sick and elderly tenant in the apartment next door. Which of these is most likely TRUE?

a. Because the landlord has good intentions, there is no violation of the Fair Housing Act.
b. If the sick and elderly tenant is over the age of 80, there is no violation of the Fair Housing Act.
c. The refusal constitutes a violation of the Fair Housing Act if the family and the elderly tenant have different national origins.
d. The refusal constitutes a violation of the Fair Housing Act because it discriminates on the basis of familial status.

Answer 22

d. The refusal constitutes a violation of the Fair Housing Act because it discriminates on the basis of familial
status.
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d. Although the landlord’s intent is to make things easier for the sick and elderly tenant, the refusal violates the Fair Housing Act by discriminating based on familial status.

Question 23

The provisions of the ADA apply to any employer with at least

a. 5 or more employees.
b. 10 or more employees.
c. 12 or more employees.
d. 15 or more employees.

Answer 23

d. 15 or more employees.

Feedback
Employers must make reasonable accommodations that enable an individual with a disability to perform essential job functions.

Question 24

What is one negative result of redlining?

a. Appraisers have a difficult time evaluating properties in the area.
b. It is often a major contributor to the deterioration of older neighborhoods.
c. The effects test must be applied to determine whether to file a lawsuit.
d. Real estate professionals are not able to advertise in local newspapers.

Answer 24

b. It is often a major contributor to the deterioration of older neighborhoods.

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b. Redlining is a prohibited practice by lenders, insurance companies, and real estate professionals. It frequently leads to the deterioration of older neighborhoods because loans are not made based on racial grounds as opposed to any real objection to an applicant’s creditworthiness.

Question 25

The resolution of a fair housing complaint by obtaining assurance that the respondent will remedy the violation is called

a. conciliation.
b. administrative proceedings.
c. civil action.
d. a judgment.

Answer 25

a. conciliation.

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Conciliation is an attempt to resolve a complaint without further legal action, such as an administrative proceeding. A conciliation agreement can be enforced through civil action.