Section 8: Federal Fair Housing Laws

Plessy vs. Ferguson, 1890s

"Separate but equal" is sufficient. Segregation is allowable.

Actions Prohibited by the FHA

Refusing to rent or sell housing Refusing to negotiate for housing Making housing unavailable Setting different terms, conditions, or privileges for sale or rental of a dwelling Falsely denying that housing is available for inspection, sale, or rental For profit, persuading owners to sell or rent, known as blockbusting

Unit 3 Exam: When state and federal laws differ, as they sometimes do with fair housing and/or human rights, which of these statements is true? State and local law override federal law. State lawmakers decide which law prevails. The conflicting law is invalidated, effectively removing the law's requirements. The state law may not remove rights granted to citizens under the federal law.

The state law may not remove rights granted to citizens under the federal law.

redlining

utilizing a large map, crossed off cities and neighborhoods it considered "risky."

Unit 2 Exam: How would you respond if your seller makes the following request? "We've lived here 10 years and love our neighbors. They're really concerned about the changes happening to the blocks around us, so we want to be careful about who we sell this house to. You know what we mean. You'll help us find the 'right' kind of buyer, won't you?" "I can't technically do that, but I could choose to advertise only in publications that target a white readership." "I'm sorry that you feel that way. I am obligated to obey the requests of my clients, but I'm going to need you to write up your request and sign it, so there's no way I can get in trouble for fair housing violations." "It would be illegal to limit the search based on race or religion or anything like that, but I promise I'll find you the most qualified buyer I can, and we'll sell this house for the highest price possible." "Let's keep this off the record. As long as we can come up with other reasons to disqualify the buyers you don't want, we'll be okay. We just need to make sure it looks legitimate from the outside."

"It would be illegal to limit the search based on race or religion or anything like that, but I promise I'll find you the most qualified buyer I can, and we'll sell this house for the highest price possible."

Brown vs. Board of Education, 1950s

"Separate but equal" is not really equal. Segregation in public schools is unconstitutional. Overturned Plessy v. Ferguson (1896)

Unit 1 Exam: Title VIII of which law prohibits discrimination in the sale, rental, and financing of housing? Civil Rights Act of 1866 Civil Rights Act of 1968 Equal Credit Opportunity Act of 1974 Housing and Community Development Act of 1974

Civil Rights Act of 1968

Unit 1 Exam: Rhonda and Jade both consider themselves to be African-American, although Rhonda has much darker skin and hair than Jade. When Rhonda went to the Valley Falls apartment manager's office to request a rental application, she was told there were no vacancies. Jade went in a day later and received an application. This may be discrimination based on _______. Color National origin Race Sex

Color

Jones vs. Alfred H. Mayer Co.. 1968

Discrimination is not allowed, even when you're selling your own property. court case in which the court forbade discrimination in the rental of sale of housing

Unit 1 Exam: Your client submits an application to rent a condo unit. He has excellent credit and has had the same job for a long time. He uses a cane to help with his mobility. When his application is rejected, he feels it's due to his disability. He is protected under what federal law? Civil Rights Act of 1866 Fair Housing Amendments Act of 1988 Federal Fair Housing Act of 1968 Housing and Community Development Act of 1974

Fair Housing Amendments Act of 1988

Fair Housing Complaints

May be filed with the Real Estate board, HUD, Circuit Court of VA or US District Court. Must be filed within one year (360) days.

Federal Fair Housing Law Exemptions

Owner-occupied dwellings with no more than four families living independently of each other Single-family housing sold or rented without the use of a broker Housing operated by religious organizations and private clubs that limit occupancy to members Housing designated for senior use

Seven Protected Classes

Race Color National origin Religion Sex Familial Status Disabilities

Unit 3 Exam: The National Fair Housing Alliance has concerns about whether or not programs meant to address the financial and mortgage crisis are ______. Economically sustainable Financially sound Interesting Racially fair

Racially fair

Unit 1 Exam: A mortgage lender has landed in hot water for fair housing discrimination. Which of these actions might have gotten the lender in trouble? Denying a loan based on income-to-credit ratio Denying a loan that was pre-approved after the mother stops working to care for her baby Imposing different interest rates based on credit scores Refusing to provide literature about loans to consumers with poor English language skills

Refusing to provide literature about loans to consumers with poor English language skills

Buchanan vs. Worley, 1917

Rules that ban certain races from living in certain areas are unconstitutional.

Unit 3 Exam: The National Fair Housing Alliance has voiced concerns that programs designed to address the financial and mortgage lending crisis have increased instances of ______. Debt Foreclosure Pyramid schemes Segregation

Segregation

Unit 1 Exam: The Housing and Community Development Act of 1974 added which protected class to federal fair housing law? Color Disability Religion Sex

Sex

Unit 1 Exam: If a private individual owner doesn't own more than three single-family homes at one time, which exemption from the Fair Housing Act could apply? Housing designated for senior use "Mrs. Murphy" exemption Owner-occupied buildings with no more than four units Single-family housing sold or rented without the use of a broker

Single-family housing sold or rented without the use of a broker

Unit 1 Exam: How does the Office of Fair Housing and Equal Opportunity support real estate consumers? The FHEO conducts investigations and holds hearings for fair housing violations. The FHEO conducts regular audits of licensee advertising activities for fair housing violations. The FHEO provides financing education for future homeowners. The FHEO provides support for protected classes through the fair housing complaint process.

The FHEO provides support for protected classes through the fair housing complaint process.

Unit 1 Exam: Which of these situations would be exempt from most provisions of the federal Fair Housing Act? A homeowner engages a real estate professional to rent out his basement apartment. An investor owns and rents out five duplexes. A non-profit owns 20 properties that it only rents to Caucasian families. The local Elks club owns a property that's rented only to Elks club members.

The local Elks club owns a property that's rented only to Elks club members.

Unit 1 Exam: When state and federal laws differ, as they sometimes do with fair housing and/or human rights, which of these statements is true? State and local law override federal law. State lawmakers decide which law prevails. The conflicting law is invalidated, effectively removing the law's requirements. The state law may not remove rights granted to citizens under the federal law.

The state law may not remove rights granted to citizens under the federal law.

Unit 1 Exam: Why did the Civil Rights Act of 1866 fail to have an immediate impact on practice? It was unconstitutional. Nobody understood the Civil Rights Act. The protected classes had to be approved. There was no agency put in place to enforce the laws.

There was no agency put in place to enforce the laws.

Housing and Community Development Act of 1974

amended the Fair Housing Act of 1968 to add sex to the list of protected classes. In the years leading up to this time, women endured sexual harassment and discrimination by landlords and sellers that made it difficult for them when obtaining housing.

Equal Credit Opportunity Act of 1974

backed up the Housing and Community Development Act by requiring lenders to give businesses and consumers equal access to credit. ECOA prohibits discrimination "on the basis of race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract)." In addition, lenders must offer reasons when rejecting applications, and must respond to all applications within 30 days.

Housing for Older Persons Act of 1995

communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from familial status discrimination. The housing must have one person who is age 55 or older residing in at least 80% of its occupied units, and the housing provider must demonstrate that the housing is intended for persons 55 and older.

Civil Rights Act of 1866

made it illegal to discriminate on the basis of race or color, without exception However, because there was no federal agency in place to enforce the laws, it would take another 100 years before the country saw a real shift in practice.

Civil Rights Act of 1964

prohibited discrimination based on race, color, national origin, and religion in programs receiving federal financial assistance. This act set the stage for the Fair Housing Act.

Fair Housing Act of 1968

prohibited discrimination in the sale, rental, and financing of housing and housing-related transactions based on race, color, national origin, and religion. Office of Fair Housing and Equal Opportunity (FHEO) under the Department of Housing and Urban Development (HUD). This agency is charged with enforcing fair housing laws and holding all parties accountable for compliance with these laws and regulations.

Americans with Disabilities Act of 1990

prohibits discrimination based on disability in programs, services, and activities provided or made available by public entities. It strengthened the 1988 amendments regarding disabilities. Title II of the act applies to public housing, housing assistance, and housing referrals. HUD is responsible for enforcing Title II.

Fair Housing Amendments Act

provided consumers with remedies if they believed they were victims of discrimination in the sale, rental, or financing of housing. This act also added familial status and disability (both physical and mental) to the existing protected classes. Owners must, when necessary, make reasonable accommodations to the rules, policies, and practices in order to provide a person with a disability access to dwellings.

Unit 1 Exam: In what year was the Americans with Disabilities Act made law? 1950 1978 1988 1990

1990

blockbusting

A process by which real estate agents convince white property owners to sell their houses at low prices because of fear that persons of color will soon move into the neighborhood

steering

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

Unit 3 Exam: You're attending a speech on the societal impact of fair housing and the speaker, who is an advocate for diversity in communities, begins the speech by asking who benefits from enforcement of fair housing law. Which of these is likely the answer the speaker is seeking? Everyone, because diverse communities are stronger communities Fair housing enforcement agencies, because their employees need jobs Lawyers, because they make money off of lawsuits Protected classes, because of the potential for lawsuits

Everyone, because diverse communities are stronger communities

Unit 1 Exam: Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from familial status discrimination? Fair Housing Amendments Act of 1988 Federal Fair Housing Act of 1968 Housing and Community Development Act of 1974 Housing for Older Persons Act of 1995

Housing for Older Persons Act of 1995

Executive Order No. 11063

President John F. Kennedy signed Executive Order No. 11063, which essentially ended segregation in federally funded housing.

Unit 2 Exam: What's the term for the illegal practice of nudging buyers away from or toward a specific area based on the presence or absence of protected class members? Blockbusting Gerrymandering Redlining Steering

Steering

Unit 2 Exam: Which act attempted to eliminate discrimination caused by blockbusting, steering, and redlining? Civil Rights Act of 1866 Fair Housing Act of 1968 Housing Discrimination Act of 1974 HUD Act of 1961

The Fair Housing Act of 1968 added protections against blockbusting, redlining, and steering.