Principles & Practices: Module 7 (Chapter 11)

The Ohio Civil Rights Law outlaws all of the following with regard to housing:

- Blockbusting - Steering - Discriminatory advertising - Discriminatory restrictive covenants - Interference with a person's enjoyment of his civil rights - Discrimination by multiple listing services - Discrimination by insurance companies (concerning homeowners insurance and fire insurance) - Redlining and other lending discrimination The state law also generally prohibits asking questions (either in person or on an application) about race, color, religion, sex, ancestry, disability, military status, or national origin in connection with the sale or lease of housing. However, there is an exception to this rule: It is permissible to ask questions & keep records about race, religion, & so forth in order to monitor compliance with Ohio Civil Rights Law.

Protection Against Fair Housing Violations

- Let their clients choose what areas they do or do not want to see. - Direct their clients to third parties for answers to questions of quality, safety, etc. - Avoid rating one area over another. - Keep good records of all meetings, phone calls, and appointments (kept or missed).

*** Who Can Be Held Liable for Unlawful Discrimination

- Seller / landlord - Property manager - Resident manager - Real estate broker - Real estate salesperson - Multiple Listing Service - Rental agent - Lender - Loan officer - Homeowners association

Prohibited Acts: The following practices and activities violate the Federal Fair Housing Act if they are based on a person's race, color, religion, sex, national origin, disability/handicap, or familial status:

1. Refusing to rent or sell residential property after receiving a good faith offer 2. Refusing to negotiate for the sale or rental of residential property 3. Taking any action that would otherwise make residential property unavailable or deny it to any person (this general clause prohibits steering and redlining along with many other discriminatory practices and marketing methods) 4. Discriminating in the terms or conditions of any sale or rental of residential property, or in providing any services or facilities in connection with such property 5. Using discriminatory advertising or any other notice that indicates a limitation or preference or intent to make any limitation, preference, or discrimination 6. Making any representation that property is not available for inspection, sale, or rent when it is, in fact, available 7. Inducing or attempting to induce, for profit, any person to sell or rent property based on representations made regarding entry into the neighborhood of persons of a particular race, color, religion, sex, or national origin (blockbusting) 8. Discriminating against anyone by a commercial lender in making a loan for buying, building, repairing, improving, or maintaining a dwelling, or in the terms of such financing (includes redlining) 9. Denying access to a multiple listing service or any similar real estate brokers' organization or discriminating in terms or conditions for access to the organization 10. Coercing, intimidating, threatening, or interfering with anyone because of his enjoyment, attempt to enjoy, or encouragement and assistance to others in their enjoyment of the rights granted by the Federal Fair Housing Act. As you can see, most discriminatory behavior in connection with residential transactions would violate federal law. Three of these terms come up frequently in discussions of fair housing laws: Steering, blockbusting and redlining.

The two federal anti-discrimination statutes that have the greatest effect on real estate transactions are:

1. The Civil Rights Act of 1866 2. Title VIII of the Civil Rights Act of 1968, commonly referred to as the Federal Fair Housing Act.

Federal Fair Housing Acts: Exemptions (1 of 4)

1. The law does not apply to a single-family home sold or rented by a private individual owner, provided that: - The owner owns no more than three such homes. - No discriminatory advertising is used. - No real estate broker (or any real estate professional) is used. If the owner is not the occupant or most recent occupant, he may use this exemption only once every 24 months. Ohio does NOT recognize this exemption. Even the listed limited exemptions are available in far fewer situations than it first appears. Remember, under the 1866 Civil Rights Act, discrimination based on race or ancestry is prohibited in any property transaction, regardless of any exemptions available under the Fair Housing Act. No transaction involving a real estate licensee is exempt.

Federal Fair Housing Acts: Exemptions (4 of 4)

4. Private clubs with lodgings not open to the public and not operated for a commercial purpose may limit occupancy, or give preference, to their own members. Note: The exemptions listed in #1 and #2 are not exempt from Ohio's fair housing laws. So, even though the Federal Fair Housing Act does not prevent discrimination in those transactions, the Ohio Civil Rights Act does. Even the listed limited exemptions are available in far fewer situations than it first appears. Remember, under the 1866 Civil Rights Act, discrimination based on race or ancestry is prohibited in any property transaction, regardless of any exemptions available under the Fair Housing Act. No transaction involving a real estate licensee is exempt.

Enforcement

A person who has been discriminated againstin violation of the Federal Fair Housing Act may file a written complaint with the Office of Equal Opportunity (OEO) of the Department of Housing and Urban Development (HUD). HUD may also file a complaint on its own initiative. In states like Ohio, where there is a state fair housing law substantially equivalent to the federal law, HUD may refer complaints to the state or local agency with similar responsibilities (e.g., the Ohio Civil Rights Commission). Otherwise, when HUD receives a complaint, the agency itself investigates the incident. If the investigation reveals evidence of a violation, the agency uses negotiation and conciliation in an effort to obtain voluntary compliance with the Federal Fair Housing Act. If efforts at voluntary resolution to the problem are unsuccessful: - The parties may have the dispute decided by one of HUD's administrative law judges. - Within two years after the discriminatory incident or after the conclusion of a HUD hearing, a person can also file a civil suit directly. The lawsuit may be filed in U.S. district court or in a state trial court of general jurisdiction. The U.S. Attorney General may also bring a civil suit in federal district court against anyone engaged in an ongoing pattern or practice of discriminatory activities

Exclusionary Zoning

A zoning law that effectively prevents certain groups (e.g., minorities, low-income individuals) from living in a community.

*** D is selling his store but he refuses to sell it to L because she is Buddhist, Chinese, and has bad credit. D has violated the a. Civil Rights Act of 1866. b. Equal Credit Opportunity Act. c. Federal Fair Housing Act. d. Ohio Civil Rights Law.

A. Because the refusal to sell is based in part on the fact that the buyer is Chinese, D is in violation of the Civil Rights Act of 1866.

*** Which exemption to the Federal Fair Housing Act is recognized in Ohio? a. lodging offered by nonprofit religious, fraternal, or charitable organizations b. the Mrs. Murphy exemption c. refusing to sell to someone whose family originated in Italy d. the sale or rental of a single-family home by a private individual

A. Ohio does NOT recognize the federal exemptions for homeowners selling their own property or for those who live in one unit of a building with up to four units (Mrs. Murphy). Ohio does recognize the exemptions for lodging offered by nonprofit religious, fraternal, or charitable organizations, however.

*** Which may NOT be held liable for housing discrimination? a. landlord who will not rent to a drug addict b. multiple listing service c. real estate licensee d. seller who will not sell to Catholics

A. Someone who is addicted to drugs is not a member of a protected class, therefore, a landlord who choose not to rent to a drug addict is not in violation. The other instances, however, are examples of actions that could result in liability for violating state and federal anti-discrimination laws.

***Steering is A. channeling prospective buyers/tenants to particular neighborhoods based on race/religion/ethnic background. B. refusing to make loans secured by property located in certain neighborhoods for discriminatory reasons. C. try to induce owners to sell homes by saying that the ethnic or racial makeup of an area is changing, implying that property values will decline. D. none of the above

A. Steering is channeling prospective buyers or tenants to particular neighborhoods based upon their race, religion, national origin, or ancestry.

*** Down Town's new zoning law contains no discriminatory language but has the effect of keeping minorities out of the city by restricting subsidized housing. So, the law is a. not okay because it does not state its intent of exclusionary zoning. b. not okay because it has a disparate impact on minorities. c. okay because it does not state any discriminatory intent. d. okay because people in subsidized housing are not a protected class.

B. Even if the outcome is unintended, exclusionary zoning ordinances that have a disparate impact on minorities, a protected class, are prohibited.

***Redlining is A. channeling prospective buyers/tenants to particular neighborhoods based on race/religion/ethnic background B. refusing to make loans secured by property located in certain neighborhoods for discriminatory reasons. C. trying to induce owners to sell their homes by saying the ethnic or racial makeup of an area is changing, implying that property values will decline. D. none of the above

B. Redlining is refusing to make loans secured by property located in certain neighborhoods for discriminatory reasons.

*** Blockbusting is a. channeling prospective buyers or tenants to particular neighborhoods based on their race, religion, or ethnic background. b. refusing to make loans secured by property located in certain neighborhoods for discriminatory reasons. c. trying to induce owners to sell their homes by saying that the ethnic or racial makeup of an area is changing, implying that property values will decline. d. none of the above

C. Blockbusting (also called panic selling) is inducing owners to sell their homes by suggesting that the ethnic or racial composition of an area is changing, implying that property values will decline.

*** The Civil Rights Act of 1866 prohibits a. ethnic discrimination in all property transactions. b. racial discrimination in all property transactions. c. both ethnic and racial discrimination in all property transactions. d. neither ethnic nor racial discrimination in all property transactions.

C. The Civil Rights Act of 1866 prohibits discrimination based on race or ancestry in any personal or real property transaction in the United States.

*** 2 checkers attempt to buy home & find evidence of discrimination. What happens to the salesperson's license? a. It will be placed on inactive status. b. It will be revoked. c. It will be suspended. d. There is an insufficient amount of information to determine what will happen.

D. There's not enough information to determine the outcome at this point. While the Ohio Real Estate Commission has rules about license suspension and revocation for fair housing violations, those rules do not apply when the discrimination complaint is based on the experiences of a checker. If the checkers file a complaint, it's investigated, and the licensee is found guilty, the Commission could take a number of disciplinary actions.

*** J is selling his store but he refuses to sell it to A because he is a Muslim. J has violated the a. Civil Rights Act of 1866. b. Federal Fair Housing Act. c. Ohio Civil Rights Law. d. none of the above

D. While the Civil Rights Act of 1866 applies to ALL property sales, it is only on the basis of race, color, or ancestry. The Ohio Civil Rights Law and the federal Fair Housing Act prohibit discrimination in residential real property transactions. J has not violated any of these laws.

EXAMPLE: Discrimination in Selling (1)

Discrimination in selling property may be relatively simple. For Example: Salespeople in a model home may go out the back door when a prospective buyer drives up. Or a developer might discourage minority buyers by making them pay higher closing costs.

Discrimination in Municipal Actions (2 of 2)

In another exclusionary zoning case, the U.S. Attorney General successfully sued Parma (a suburb of Cleveland) for violations of the Fair Housing Act because, according to the 1970 census, Parma's population was 100,216, but only 50 of its residents were black. Cleveland's population, by contrast, was 16% black at the time. The court ruled that certain actions by city officials had the purpose and the effect of maintaining Parma as a segregated community. These actions included the refusal by city officials to enact a fair housing resolution welcoming "all persons of good will," refusal to participate in public low-income housing programs, denial of building permits for a privately sponsored low-income housing development, and the adoption of an ordinance requiring voter approval for subsidized housing projects. To correct the problem, the court issued a wide variety of remedial injunctions and invalidated the community's ordinance requiring voter approval for subsidized housing projects. In addition to Fair Housing law, members of the National Association of Realtors (NAR) agree to abide by a Code of Ethics, which includes a list of protected classes including sexual orientation. Although federal and state law has not yet included this group, NAR members recognize it.

Discrimination in Advertising (2)

In one case, discrimination was found in advertising because whenever the brokerage took a listing in one of the "changing areas" of the city (a neighborhood that was becoming more integrated or was becoming predominantly black, for example), its standard practice was to advertise that home in the black newspaper and not in the general circulation newspapers.

EXAMPLE: Discrimination in Renting

In one case, it was the property management company's policy to process only rental applications accompanied by a deposit. The rental agents told white applicants about that policy and, accordingly, the white applicants all made a deposit. Black applicants were not informed that a deposit was required, so they did not make one and their applications were never processed.

EXAMPLE: Liability for Discrimination

In one case, the Supreme Court held that the actual rental applicant, a black checker, a white checker, and the fair housing organization were all entitled to sue because, in effect, they all had been injured by the defendants' discriminatory practices. The actual rental applicant's claim was based on straightforward allegations of denial of housing and racial steering. The black checker's claim was based on a provision of the Fair Housing Act making it unlawful for anyone to misrepresent that housing is not available when, in fact, it is. The white checker's claim was based on a general right to enjoy the benefits of an integrated society; the defendants' practices interfered with that right. Finally, the fair housing organization had a right to sue on the theory that the defendants' practices interfered with the organization's housing counseling and referral services with a resulting drain on its financial resources.

EXAMPLE: Discrimination in Municipal Actions (1)

In one case, the court found discrimination because the city of Arlington Heights near Chicago refused to rezone to permit the construction of multi-family dwellings within its boundaries. The population of the Chicago metro area was about 18% black, but Arlington Heights had only 27 black residents out of a population of about 65,000 (0.04%). Since, historically, a greater percentage of the occupants of multi-family dwellings were black rather than white, the court ruled that the city's zoning ordinance had the effect of excluding black people from living there.

Discrimination in Advertising (1)

In some areas, an advertisement describing a home as "near schools and churches" may be taken to mean that it is in a Gentile neighborhood, and that those of Jewish ancestry (who attend temples or synagogues, not churches) are not welcome. Under certain circumstances, even the newspapers a broker chooses for advertising may be held to have the effect of racial steering.

Steering

It relates to buyers or renters and is defined as channeling prospective buyers or tenants to particular neighborhoods based upon their race, religion, national origin, or ancestry. A real estate agent's good faith answer to a question from a prospective buyer about the racial or ethnic composition of a neighborhood probably would not violate the law, as long as the agent did not intend to discriminate or encourage discrimination. However, anything past a simple, factual answer could be considered steering. It is safest to avoid any discussion of race or ethnic background.

EXAMPLE: Discrimination in Selling (2)

Sometimes, however, discrimination entails an elaborate scheme. For Example: In one case, when a black couple attempted to buy a home in an exclusive community, the residents voted to enforce a restrictive covenant giving the homeowners association a 30-day assignable option to buy the property on the same terms that had been offered. Another buyer, (a white woman) who had viewed the home earlier, agreed to buy the association's option. The white buyer claimed she was not aware of the race of the other prospective buyers, but the court did not believe her and awarded damages to the plaintiffs. In another case, when a real estate agent went along with a client's discrimination, the agent and the client were forced to pay damages. This ruling and damages award came even after the plaintiffs ultimately bought the property in question before the court case was decided

Requirements

The Federal Fair Housing Act requires all real estate brokers, salespeople, banking personnel, and all others associated with housing to treat all persons equally with regard to housing choice, services provided, and all other facets of their real estate activities. The Federal Fair Housing Act further requires all real estate brokers and lenders to display fair housing posters in their offices and to use the fair housing logo in their advertising. If a broker or lender is investigated for alleged discriminatory acts, failure to display the poster and use the logo may be considered prima facie evidence of discrimination. On the next page, you will see a sample fair housing poster and handout provided by the Ohio Real Estate Commission for use in Ohio.

The Ohio Civil Rights Law: Enforcement

The procedures for enforcing the fair housing provisions of the Ohio Civil Rights Law are very similar to those for enforcing the Federal Fair Housing Act. A person who has been discriminated against in violation of the Ohio Civil Rights Law may file a charge with the Ohio Civil Rights Commission. The charge must be in writing, under oath, and filed with the Commission within one year after the discriminatory incident occurred. If there is evidence of a violation, the Commission's first step is negotiation to obtain voluntary compliance with Ohio Civil Rights Law. The second step is for the Commission to hold a formal hearing. If the Commission finds that anyone is engaged in a pattern or practice of housing discrimination, it may ask the Ohio Attorney General to file a lawsuit in the Court of Common Pleas.

Fair Housing and Ohio's License Law

When an Ohio real estate broker or salesperson has violated a local, state, or federal civil rights law pertaining to real estate transactions, the Ohio Real Estate Commission may suspend or revoke that person's real estate license. If it is the licensee's first offense, the licensee must have been found guilty of a violation by a court. That is not a requirement, however, in the case of later offenses. For a second offense, the Commission must suspend the license for a minimum of two months, or revoke it. If there are any subsequent offenses, the license must be revoked. These rules about suspension or revocation of an agent's license apply only if the violation occurred in "a situation wherein parties were engaged in bona fide efforts to purchase, sell, or lease real estate" (Ohio Revised Code § 4735.18 (A)(7)). In other words, the rules do not apply if the case involves checkers from a fair housing organization instead of real buyers, sellers, or renters. Checkers (also called testers) are people working with a fair housing organization who pretend to be interested in buying or renting property from someone suspected of unlawful discrimination. The overall effect of federal and state legislation is to outlaw discrimination based on race or ancestry in all property transactions, with no exceptions. Of course, sometimes discrimination is blatant and other times it is more difficult to detect or prove.

Exclusionary zoning laws

are defined as any laws that have the effect of denying housing to minorities or other protected classes. The clause "make otherwise unavailable or deny" in anti-discrimination legislation has been interpreted to prohibit such exclusionary zoning.

Civil Rights Act of 1866: Compensatory Damages

damages awarded to an injured party to compensate the party for injuries suffered. Let's continue with the last example. In this situation, compensatory damages may include reimbursement for expenses caused by the discrimination (e.g., extra rent, storage, moving costs). The award may also include compensation for emotional distress (humiliation, stress, and anger) that results from being discriminated against. In many discrimination cases, the compensatory damages can total thousands of dollars; in exceptional cases, hundreds of thousands of dollars have been awarded.

Civil Rights Act of 1866: Punitive Damages

damages awarded to an injured party to punish the wrongdoer and discourage future similar acts. Punitive damages may be awarded if the acts of the defendant are deliberate or particularly egregious. There is no limit on the amount of punitive damages that may be awarded for claims under the 1866 Act and awards have exceeded $100,000 in some cases.

The Civil Rights Act of 1866

prohibits racial discrimination in any property transaction in the United States: Real or personal, residential or commercial, improved or unimproved. The constitutionality of this Act was challenged, but in the 1968 landmark Supreme Court decision of Jones v. Alfred H. Mayer Co., the court ruled that private individuals, in addition to the government, may not discriminate against people based on race when it comes to buying, selling, or owning property. The ruling in favor of the Joneses established that the 1866 Act prohibited racial discrimination by private parties, even without state action. The Supreme Court reasoned that the right to buy or lease property could be impaired just as effectively by those individuals who place property on the market as by government actions. Originally, the 1866 Act was interpreted to prohibit only racial discrimination. However, in 1987, the Supreme Court held that the Act applies to discrimination based on ancestry, or color, as well as race.

Blockbusting (also called panic selling)

relates to selling and is defined as the practice of predicting the entry of minorities into a neighborhood, and stating or implying this will result in lower property values, higher crime rates, or other undesirable consequences. The purpose is to induce property owners to list their property for sale or to sell properties at a reduced price so the individual making the predictions (usually a real estate agent) can profit. A wide variety of blockbusting "techniques" appear in the case law. Here are some examples of illegal activities: - Passing out pamphlets stating that a member of a minority group has purchased a home nearby - "Wrong number" phone calls where the callers indicate that they thought they were calling, for example, "the Asian family who just moved in" - Purchasing a home in the area and selling it on contract to a minority buyer, then suggesting to owners that it is time to move

*** Who Can Sue for Violation of Anti-Discrimination Laws?

- Prospective buyer / tenant - State Attorney General - Ohio Civil Rights Commission - Check - HUD - Fair Housing Organization - U.S. Attorney General

The Ohio Civil Rights Law prohibits housing discrimination on the basis of:

- Race - Color - Religion - Sex - Ancestry - National origin - Disability - Familial status - Military status The state law applies to the sale or lease of any building used, or intended to be used, as a residence. It also applies to any vacant land offered for sale or lease (not just land offered specifically for residential purposes).

Federal Fair Housing Acts: Exemptions (2 of 4)

2. The law does not apply to the rental of a room or unit in a dwelling with no more than four units, provided that: • The owner occupies one unit as his residence. • No discriminatory advertising is used. • No real estate broker or agent is used. This exemption is referred to as the "Mrs. Murphy exemption." Ohio does NOT recognize this exemption. Even the listed limited exemptions are available in far fewer situations than it first appears. Remember, under the 1866 Civil Rights Act, discrimination based on race or ancestry is prohibited in any property transaction, regardless of any exemptions available under the Fair Housing Act. No transaction involving a real estate licensee is exempt.

Federal Fair Housing Acts: Exemptions (3 of 4)

3. In dealing with their own property in noncommercial transactions, religious organizations or affiliated nonprofit organizations may limit occupancy, or give preference, to their own members—provided membership is not restricted on the basis of race, color, or national origin. Even the listed limited exemptions are available in far fewer situations than it first appears. Remember, under the 1866 Civil Rights Act, discrimination based on race or ancestry is prohibited in any property transaction, regardless of any exemptions available under the Fair Housing Act. No transaction involving a real estate licensee is exempt.

Disparate Impact

A law that is not discriminatory at face value, but has a greater impact on a minority group than on other groups.

disparate impact

A law with disparate impact may be neutral on its face, but it has a discriminatory effect since it has a greater impact on one group than it has on others.

Civil Rights Act of 1866: Enforcement

A person who has been unlawfully discriminated against under the 1866 Act can sue only in federal district court. For incidents that occur in Ohio, action must be filed within one year after the discriminatory incident occurred. Since the statute does not specifically prescribe remedies, the court fashions the remedies it finds necessary. Case law shows that a claimant who proves discrimination that violates the 1866 Act may be entitled to an injunction, compensatory damages, and/or punitive damages. Injunctions - An injunction is a court order requiring the defendant to do, or refrain from doing, a particular act.

*** Which statement appears on the Equal Housing Poster? a. "Blockbusting is also illegal." b. "Puffing is also illegal." c. "Redlining is also illegal." d. "Steering is also illegal."

A. If you read the fair housing poster promulgated by the Ohio Real Estate Commission, which is available from the Resources menu, you saw that it includes the phrase "Blockbusting is also illegal." Blockbusting, you'll recall, is the prohibited act of inducing or attempting to induce, for profit, any person to sell or rent property based on representations made regarding entry into the neighborhood of persons of a particular race, color, religion, sex, or national origin.

Discrimination in Renting

An example of blatant discrimination is when a landlord rejects a prospective tenant and makes very little effort to conceal the fact that racism (or some other form of prejudice) is the reason for not accepting the person. Even if the landlord actually has legitimate financial reasons for rejecting people as tenants, when race, color, religion, sex, national origin, or disability/handicap is a factor in a refusal to sell or rent, it is a violation of fair housing laws. Blatant discrimination has become less common over the past few decades. Today, discrimination tends to be veiled. The landlord finds other ways to avoid minority applicants or pretends all applicants are being treated equally.

Title VIII

Another name for the Federal Fair Housing Act, which is Title VIII of the Civil Rights Act of 1968

Familial Status

As mentioned earlier, the Fair Housing Act prohibits discrimination on the basis of familial status, making it illegal to discriminate against a person because she is a parent or guardian with custody of a child under 18 years old—but that rule does not apply to "housing for older persons." The Act defines housing for older persons as any housing that is: - Provided under a state or federal program designed to assist the elderly. - Intended for and solely occupied by persons 62 or older. - Designed to meet the physical or social needs of older persons if management publishes and follows policies and procedures demonstrating an intent to provide housing for persons 55 or older, and at least 80% of the units are occupied by at least one person 55 or older.

*** Dora is interested in renting an apartment, but believes she was discriminated against by the landlord. If she wants to file a complaint with the Ohio Civil Rights Commission, she must do so within _______ of the incident. a. 180 days b. six months c. one year d. two years

C. She must file a complaint, in writing and under oath, within one year after the discriminatory incident occurred.

EXAMPLE: Steering

Caucasian customers might be shown homes only in Caucasian neighborhoods and African American customers shown homes only in African American neighborhoods.

Steering

Channeling prospective buyers or tenants to particular neighborhoods based upon their race, religion, national origin, or ancestry.

*** The Federal Fair Housing Act prohibits discrimination based on a. race, color, religion, sex, age, national origin, disability, or familial status. b. race, color, religion, sex, ancestry, national origin, disability, familial status, or handicap. c. race, color, religion, sex, marital status, national origin, disability, or familial status. d. race, color, religion, sex, national origin, disability, or familial status.

D. The Federal Fair Housing Act (Title VIII of Civil Rights Act of 1968) prohibits discrimination based on race, color, religion, sex, national origin, disability/handicap, or familial status in the sale or lease of residential property.

Discrimination in Municipal Actions (1 of 2)

Exclusionary zoning laws are defined as any laws that have the effect of denying housing to minorities or other protected classes. The clause "make otherwise unavailable or deny" in anti-discrimination legislation has been interpreted to prohibit such exclusionary zoning. Since it is unlikely that a municipality would enact an openly racist ordinance, these cases usually involve arguments based on the concept of disparate impact. A law with disparate impact may be neutral on its face, but it has a discriminatory effect since it has a greater impact on one group than it has on others. Exclusionary zoning cases usually involve ordinances that prohibit or unreasonably restrict multi-family or low-income housing. In comparison to the white population, members of minority groups are more likely to fall into the low-income demographic. As a result, it has been successfully argued, in a number of cases that ordinances limiting low-cost housing have a disparate impact on minority groups—in effect excluding them from certain communities.

Liability for Discrimination

For the purposes of the Fair Housing Act, the U.S. Supreme Court held that it is not only actual buyers and renters who can sue for violation of the Act. In some cases, a fair housing organization also has standing to sue, as do the individual checkers from a fair housing organization, since it is said to be the whole community that is injured by housing discrimination. So, just about everyone affected by unlawful discrimination can sue under the Fair Housing Act. And just about everyone connected with the violation can be held liable, either because of their own actions or because they are legally responsible for the actions of their agents (e.g., property managers, real estate brokers, real estate salespeople, property owners). Note: If a seller refuses to go through with a transaction because of the buyer's race, religion, ethnic background, etc., the broker may sue the seller for the commission.

EXAMPLE: Civil Rights Act of 1866: Enforcement

In a case where was it is proven that a potential home buyer was discriminated against in a purchase, a court might order the defendant to sell her house to the plaintiff.

The Ohio Civil Rights Law: Exemptions

Like the Federal Fair Housing Act, the fair housing provisions of Ohio Civil Rights Law allow a religious organization to limit use of its noncommercial housing accommodations to its own members, unless membership in the religious organization is restricted on the basis of race, color, or national origin. Similarly, a private or fraternal organization may limit use of its noncommercial lodgings to its members if operating the lodgings is only incidental to the organization's primary purpose. Remember: The Ohio Civil Rights Law does NOT recognize the "Mrs. Murphy exemption" or allow the seller or lessor of a single-family home to discriminate.

Redlining

Refusing to make loans secured by property located in certain neighborhoods for discriminatory reasons.

The Federal Fair Housing Acts (also called "Title VIII of the Civil Rights Act of 1968")

The Act prohibits discrimination based on race, color, religion, sex, national origin, disability, or familial status in the sale or lease of residential property. The Act also prohibits discrimination in: - Advertising - Real estate brokerage - Lending - Some other services associated with residential transactions The law applies to most sales, rentals, and exchanges of residential property. This includes vacant land if it is offered for the construction of residential buildings.

Americans with Disabilities Act (ADA)

The Americans with Disabilities Act (ADA) expanded the accommodations that must be made for people with disabilities as a means of prohibiting discrimination. This federal regulation, signed into law on July 26, 1990, requires compliance in five general areas of service or operation and provides a standard for the application of the requirements found in the Act. The five areas, or Titles, set out are: 1. Employment—Any employer with 15 or more employees must comply with the provisions of this Title for accessibility in the workplace for disabled individuals. 2. Public services 3. Public accommodations—Requires accessibility in commercial facilities and private entities that offer certain education courses. Since 1993, all new builds have to comply with the Act. 4. Private entities 5. Telecommunications

Blockbusting

The illegal practice of inducing owners to sell their homes (often at a deflated price) by suggesting the ethnic or racial composition of the neighborhood is changing, with the implication that property values will

The Ohio Civil Rights Law: Prohibited Acts:

The state law makes it illegal to discriminate by refusing to sell or rent, refusing to negotiate for sale or rental, or otherwise make housing unavailable. The law also makes it illegal to discriminate in the terms or conditions of a sale or lease, or in furnishing facilities and services in connection with housing

Disability

Under the Fair Housing Act, a disability is defined as a physical or mental impairment that substantially limits or curtails one or more major life activity. Discrimination would include refusal by a landlord or rental agent to permit, at the expense of the disabled person, reasonable modification of the premises. Furthermore, under the Federal Fair Housing Act, discrimination also encompasses the building of new multi-family dwellings for first occupancy on or after April 1, 1991 that do not include certain accommodations for the disabled (e.g., wheelchair-width doorways, accessible common areas, modified light switches, electrical outlets, thermostats, kitchen fixtures, bathroom facilities). Note: While most disabilities are covered under the Federal Fair Housing Act, there are minor exceptions (e.g., addiction to a controlled substance) that are not part of the protected class.

Checkers (also called testers)

people working with a fair housing organization who pretend to be interested in buying or renting property from someone suspected of unlawful discrimination.

Redlining

relates to lenders and is defined as a refusal to make loans secured by property located in certain neighborhoods for discriminatory reasons. In the past, many lenders assumed that an integrated or predominantly black neighborhood was automatically a place where property values were declining. Based on that assumption, they refused to make loans in those neighborhoods. In many cases, this worked as a self-fulfilling prophecy. Since it was almost impossible to obtain purchase or renovation loans, it was extremely difficult to market, maintain, or improve homes in those neighborhoods—causing values to decline. Lenders may still deny loans in neighborhoods with declining property values but this action must be based on objective economic criteria concerning the condition and value of the particular property or surrounding neighborhood. A lender may not simply equate an integrated or minority neighborhood with declining property values.