Fair housing Flashcards
Fair Housing
Fair housing is the right for a buyer or tenant to choose housing free from unlawful discrimination by a seller or landlord.
Federal, state, and local fair housing laws protect people from discrimination in housing transactions.
It guarantees that regardless of your race, color, religion, national origin, sex, disability, familial status, you have the right to choose the property that’s best for your needs with no outside bias or discrimination.
Civil Rights Act of 1866
Enacted in April 9, 1866. Declared that people born in the US and not subject to any foreign power are entitled to be citizens without regard to race. It was mainly intended to protect the civil rights of persons of African descent born in or brought to America in the wake of the American Civil War.
In 1954 the US Supreme Court concluded that racially segregated schools are inherently unequal. It was then overruled the 1896 Plessy v Ferguson decision.
Civil Rights Act of 1968
Signed Aprill 11 1968 by President Lyndon B Johnson. Meant as a follow-up to the Civil Rights of 1964.
Within the Civil Rights of Act 1968, the Fair Housing Act of 1968, also known as Title VIII of the civil Rights Act of 1968 was created. It enforced and enabled persons in the protected classes to rent or own residential property in areas that were previously segregated.
The Housing and Community Development Acts of 1974
Brought about many social reform changes in public housing and discrimination amending the Civil Righters Act of 1968 to include sex as a protected class.
Fair Housing Amendments Act of 1988
Expanded protection coverage to include disabled persons and families with children.
The act bans discrimination in the sale or rental of housing on the basis of a disability and requires the design and construction of new, covered multifamily dwellings to meet certain adaptability and accessibility requirements.
It currently does not specifically address discrimination on the basis of sexual orientation.
AIDS: the Act also established that people diagnosed with AIDS are a protected class.
According to HUD, its illegal for real estate agents to make unsolicited disclosures that a currant or former occupant of a property has AIDS. HUD advises the agent not to respond if in fact they know this to be true.
Housing fir Older Persons Act of 1995
aka HOPA.
Was exempted from FHA prohibition of discrimination against families with children in 2 categories:
1. 100% of occupants must be 62 years or older OR 80% of the occupied units must be occupied by at least one person who is 55 years or older.
HOPA also requires that a facility or community seeking to claim the 55 and older exemption show the following factors:
1. HUD secretary has determined that is is specifically designed for and occupied by elderly persons under federal, state or local government program.
- Housing is intended and operated for persons 55 yo or older.
- The housing facility publishes and adheres to policies and procedures that demonstrate its intent to qualify for the exemption.
- The housing facility also complies with rules issued by HUD for the verification of occupancy.
State vs Federal Fair Housing
All states must follow guidelines for fair housing and the administration of the policies and procedures.
State, local or regional guidelines may be more restrictive but not less than Federal.
Seven protected class within the Fair Housing Act are:
- race
- Color: Title VII of the Civil Rights Act of 1964 further prohibits color discrimination against all persons including Caucasians)
- Religion: First Amendment of the U.S. Constitution prohibits the US government from establishing a national religion and interfering with its citizens’ free exercise of religion.
HOWEVER, Fair Housing Act exempts dwellings owned or operated by religious organizations from some of the prohibitions in the act. - National origin: refers to a person’s place of birth, ancestry or ethnicity. Discrimination based on immigration status is considered a type of national origin discrimination. It also may be considered discriminatory if
a seller or his agent threatens to call US Citizenship and Immigration Service on a buyer. - Sex: Federal government recognizes male female, not Sexual orientation, identification and preference.
Illinois have added sexual orientation as a protected class. - Disability: FHA protects buyers with both physical and mental disability. Also protects people who live with a buyer who has a disability.
- Familial status: presence of at least one child under 18, protects pregnant woman and/or process of adopting.
You may legally turn away families with children if your property qualifies as senior housing under the HOPA exemption rules.
Exceptions to Fair Housing Act
Acts are applied to individuals, lenders, property owners, real estate agents, and brokerage services.
However, some activities do not apply to a private owner who sell his own home.
Exemptions include:
1. A religious or private organization may give preference to other members unless membership is restricted based on one of the seven protected classes.
- An owner who owns four units or fewer and lives in one unit.
- A private individual owner who
* does not own more than 3 single family houses,
* if the owner does not use the services of a broker,
* if the owner does not use discriminatory advertising and
* if the owner ha no participated in 3 or more rental or sales transaction in a 1 year period. - Housing for elders may exclude families with children under HOPA (housing for older persons act) exemptions.
Violations of Fair Housing
Under the law, even people who did not intend to discriminate are responsible for discrimination.
Violations have civil and criminal remedy.
Civil: remedy in form of monetary compensation for injury, including emotional distress and injunctive relief.
Criminal: Includes fines and jail time for the perpetrator or their agent.
Print advertising vs. internet provider
Internet providers are not subject to the FAIR Housing law due to an interpretation of the Communications Decency Act that determines internet providers are not publishers and consequently are not liable for Fair Housing Act violations n the websites they host.
Steering
Refers to the practice in which real estate brokers guide prospective home buyers toward or away from certain neighborhoods based on any one of the protested class.;
2 ways:
1. Advising customers to buy or not buy in a particular neighborhood based on a protected class.
2. Failing to show, not show or inform buyers of homes that meet their specifications based on a protected class.
If client asks to show heavy speaking hispanic area and you do but fail to show other non-hispanic area, than your actions could be construed as steering.
Blockbusting
Or panic selling.
Is an unlawful act under fair housing laws.
Common in the 50s and 60s.
It exists when realtors or investors persuade people to sell their homes or leave a neighborhood because the prospective entry of home buyers of another race in the neighborhood. The result is panic selling where homeowners compelled to sell at reduced price. Homes are then resold to minority buyers at a profit.
Redlining
Real estate brokers, lenders, and insurance companies in effect write off an entire neighborhood and refuse to do business there because of certain minorities.
It is not illegal for companies to charge higher premiums in higher risk areas.
Redlining can occur if different products offered to specific minorities only in high risk areas. Or if neighborhoods are targeted for predatory lending or inferior loans or if loan modifications or refinancing is not equally available.
Redlining also may be evidenced by the type and extent of advertising in or to a particular neighborhood.
Appraising per FHA
May not use any protected classes in determining value of property.
This also includes real estate professionals who give comparative market values to their clients.
Advertising
See above.
Use of Equal Housing Opportunity or the fair housing logo in ads is good.
Use different models both majority and minority groups etc are well represented.
