Fair Housing

Question 1

Civil Rights Act of 1866

Answer 1

prohibited discrimination in housing based on race or color. It went beyond housing, as well, and applied to all personal and real property. Unfortunately, because of other racist laws and practices at the time, this Act did not make much of an impact.

Question 2

Jones v. Mayer (1968)

Answer 2

which decided that all discrimination based on race is illegal in the selling or renting of residential property. Under the 1866 Act, it is ALWAYS illegal to discriminate in housing on the basis of race or color. No exceptions.

Question 3

Civil Rights Act of 1964

Answer 3

The Civil Rights Act of 1964 was landmark federal legislation that prohibited discrimination on the basis of race, color, religion, sex, and national origin for publicly funded projects.

Question 4

Executive Order 11063 of 1962

Answer 4

In 1962, President John F. Kennedy issued Executive Order 11063, which prohibited discrimination in the selling or leasing of property owned or funded by the federal government, including those properties relying upon VA loans and FHA loans.

Question 5

The Fair Housing Act of 1968

Answer 5

Shortly after the assassination of civil rights leader Dr. Martin Luther King Jr., Congress passed the Civil Rights Act of 1968.

Title VIII of this Act, also known as the Fair Housing Act, prohibited discrimination in real estate practices. This Act says it is unlawful to refuse to sell, rent to, or negotiate with any person because of that person’s inclusion in a protected class.

Question 6

We just learned about what the Fair Housing Act protects and prohibits. But what things aren’t covered?

Question 7

The Fair Housing Act does not apply to commercial transactions. More specifically, the Act does NOT cover non-dwelling buildings. (It would cover a mixed-use development, however, as at least part of the development would be used as dwellings.)

Answer 7

4 Housing for older persons is exempt from the familial status requirements of the Fair Housing Act if one or more of the following three conditions apply:

Exemption #1: Single-Family Residences Sold or Rented by Owner
-The property owner does not own any interest in more than three single-family residences at one time.
-In cases where the owner is not the most recent resident of the property being sold, that owner is only granted one exempt sale in any 24-month period

Exemption #2: Rental of Rooms or Units in Owner-Occupied Property

Exemption #3: Dwellings Belonging to Religious Organizations or Private Clubs

-The housing is occupied only by persons who are 62 years old or older.

-At least 80% of the housing units have at least one occupant who is 55 years old or older.

-The housing is provided under any state or federal program that the Secretary of Housing and Urban Development determines is designed and operated to provide assistance to the elderly.

Question 8

So, those are the exemptions. In most states, though, these exemptions do not apply if:

Answer 8

A real estate license holder is involved in the transaction.

One of the parties is otherwise involved in the business of selling or renting.

Discriminatory advertising is used (i.e., Mrs. Murphy can’t advertise her preferences for tenants based on protected classes, even though in practice, she can choose whoever she wants).

Question 9

Equal Credit Opportunity Act of 1974

Answer 9

The Equal Credit Opportunity Act, or ECOA, aims to prevent discriminatory lending practices, otherwise known as credit discrimination.

Question 10

State Fair Housing Act

Question 11

However, the exemptions under the State Act are substantially different from those under the Federal Act. When there is a conflict between the federal and state acts, the more restrictive law applies. Here are the major differences:

Answer 11

No FSBO exemption under State Act:

Introduction of “single-sex dormitory” exemption under State Act:

Expansion of Mrs. Murphy exemption under the State Act: Remember how the federal Fair Housing Act exempts rental of rooms or units in owner-occupied property for 1-4 dwellings? The State Act has this same exemption, but adds family members of the owner, as well, under its category of “owner-occupied.”

Question 12

exempt from the ADA

Answer 12

drug addicts

Question 13

blockbusting

Answer 13

the practice of persuading owners to sell property cheaply because of the fear of people of another ethnic or social group moving into the neighborhood, and then profiting by reselling at a higher price.

Question 14

redlining

Answer 14

refuse (a loan or insurance) to someone because they live in an area deemed to be a poor financial risk.

Question 15

steering

Answer 15

the illegal act of guiding prospective home buyers towards or away from certain neighborhoods or areas because of their membership in a protected class. It is also known as channeling.

Question 16

At this point, it must be very clear that as a broker, you should not permit discrimination by your _______.

Answer 16

client. Indeed, if you go along with a client’s discriminatory act or speech, you are just as liable for violating fair housing laws.

Question 17

Both the Home Mortgage Disclosure Act of 1975 (HMDA) and the Community Reinvestment Act (1977) were efforts to combat ______.

Answer 17

redlining

Question 18

advertisments are also to be ___

Answer 18

non discriminatory. so double check the FH laws when making them.

Question 19

Wait, what is a conciliation agreement?

Answer 19

Conciliation is an attempt to resolve the issues raised by a complaint or an investigation through informal negotiations. Conciliation is also known as voluntary compliance. Conciliation can occur at any point during the investigation of the complaint.