Unit 5: Fair Housing Laws
Equal Credit Opportunity Act (ECOA)
The federal law that prohibits discrimination in the extension of credit because of race, color, religion, national origin, sex, age, or marital status.
Why is the 1954 court decision Brown v. Topeka Board of Education consider a benchmark ruling in fair housing? A)Brown v. Topeka Board of Education established common education standards for all students to meet to be eligible for graduation. B)Brown v. Topeka Board of Education was the first decision that overturned the "separate but equal" doctrine. C)Brown v. Topeka Board of Education said substandard schools could be taken over by more successful schools. D)Brown v. Topeka Board of Education put the federal government in charge of history text books.
The answer is Brown v. Topeka Board of Education was the first decision that overturned the "separate but equal" doctrine. Until the Brown ruling, segregation was considered acceptable.
What is a "substantial equivalency" fair housing law? A) A law that requires all minorities to be treated basically the same B) A law that permits brokers to find homes in different neighborhoods that are substantially equivalent to homes in exclusive neighborhoods C) A law that permits a white sales agent to be exchanged for a minority sales agent at the discretion of the broker D) A state or local law that is basically the same as the federal fair housing law
The answer is a state or local law that is basically the same as the federal fair housing law. The state or local law would have the same protected classes and similar fines or other punishments.
What is a common tool used to determine whether a landlord is violating provisions of the Fair Housing Act? A) Putting undercover officers in parking lots to count the number of minorities coming and going from buildings B) Unannounced audits of landlord books C) Conduct random census counts of buildings D) Sending paired testers to apartments to attempt to rent apartments
The answer is sending paired testers to apartments to attempt to rent apartments. Testers document whether they received different treatment while attempting to rent the same unit.
Blockbusting
Encouraging owners to sell or rent their homes because minorities are entering.
Americans with Disabilities Act
Passed by Congress in 1991, this act banned discrimination against the disabled in employment and mandated easy access to all public and commerical buildings.
What notice are all publishers—whether on paper or electronic—required to carry if they are advertising real estate for sale? A)That the publication will not knowingly accept any advertising that violates fair housing law B)That not all real estate agents are fair and honest and the public should beware C)That the publication is not responsible for homes that have leaks or other flaws D)That they are not responsible for the pricing of homes
The answer is that the publication will not knowingly accept any advertising that violates fair housing law. Publishers, like real estate brokers, can be held liable for advertising that tends to eliminate any protected class.
Fair Housing Act
The federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, and national origin
Does the Fair Housing Act allow a childless, but pregnant, woman to claim protection under the familial status section of law?
A) No, if she is single and pregnant, she could be denied an apartment under the apartment manager's morals clause. B) No, if she is denied a rental unit, it would have to be under gender discrimination. C)* Yes, pregnant women are protected under the familial status provisions of the law. D) No, but depending or her race or religion, she might qualify for fair housing protection. The answer is yes, pregnant women are protected under the familial status provisions of the law. It also would protect anyone who is currently seeking custody of a child under the age of 18.
What is the reasoning MOST lenders gave for "redlining" neighborhoods?
A) The redlined communities were heavily populated by blacks and Hispanics. B)All of these. C)The redlined communities were heavily populated by low-income people. D)Banks were fearful of too many payment defaults from geographic areas. The answer is all of these. Historically, banks did not want to make loans because they believed people of some races were unreliable borrowers—often making that decision on scant evidence. The Home Mortgage Disclosure Act attempts to overcome that prejudice.
If a home seller instructs the listing agent not to show his property to a real estate investor (fearful it could be turned into rental property), must the listing agent comply?
A)No, it is discrimination because sales agents cannot act as arbiters of intention. B)No, turning away anyone is discrimination on its face and therefore a violation of fair housing law. C)Investors are not a protected class, meaning sales agents are permitted to turn away investors. D)No, it is discrimination because—given proper zoning—rental units are not illegal. Explanation The answer is investors are not a protected class, meaning sales agents are permitted to turn away investors. The seller's motivation is not something the sales agent is required to investigate, but if the seller is fearful his home would be turned into rental units, and those units might be rented minorities or other protected classes, the agent could be looking at a legal issue.
Which people are protected under the handicap classification of the Fair Housing Act? A)Users of illegal or controlled substances B)Recovered and current mental patients C)Those who pose a threat to public health and safety D)Those convicted of the manufacture or distribution of a controlled substance
The answer is recovered and current mental patients. Also protected are individuals who have AIDS and participants in addiction recovery programs. For example, a landlord can lawfully discriminate against a cocaine addict but not against a member of Alcoholics Anonymous.
Which prohibits, without exception, all discrimination based on race in any real estate transaction? A)Americans with Disabilities Act of 1990 B)Civil Rights Act of 1866 C)Federal Fair Housing Act of 1968 D)Civil Rights Act of 1964
The answer is Civil Rights Act of 1866. The Civil Rights Act of 1964 prohibits discrimination based on race, color, religion, or national origin in housing that receives federal funding. The Fair Housing Act of 1968 extended fair housing laws to cover the majority of housing in the country. With its amendments, it prohibits discrimination in residential housing based on color, race, national origin, religion, gender, familial status, and disability. The Americans with Disabilities Act of 1990 protects the employment and accessibility rights of people with disabilities.
Which court decision essentially undermined the Civil Rights Act of 1866? A)Brown v. Topeka Board of Education B)Plessy v. Ferguson C)Roe v. Wade D)Jones v. Mayer
The answer is Plessy v. Ferguson. The court decision created the doctrine of "separate but equal," essentially legalizing segregation in everything from schools to housing.
A complaint of discrimination brought under the Texas Fair Housing Act can be filed with the U.S. Department of Housing and Urban Development or with the A) Texas Department of Criminal Justice (TDCJ). B) Texas attorney general. C) Texas Workforce Commission Civil Rights Division (TWCCRD). D) county clerk in the county the alleged discrimination occurred.
The answer is Texas Workforce Commission Civil Rights Division (TWCCRD). Complaints of discrimination brought under the Civil Rights Act of 1866 must be taken directly to a federal court. All other complaints are filed with the (TWCCRD) within one year of the alleged discriminatory act.
Complaints of discrimination brought under the Civil Rights Act of 1866 must be taken directly to A)a state district court. B)the state attorney general. C)a federal court. D)the state supreme court.
The answer is a federal court. Other complaints can be filed with the Texas Workforce Commission Civil Rights Division (TWCCRD) or with the U.S. Department of Housing and Urban Development (HUD).
Fair-housing-protected classes are established by A)state law alone. B)state and local laws. C)federal law alone. D)federal, state, and local laws.
The answer is federal, state, and local laws. The federal Fair Housing Act as amended has seven protected classes: race, color, religion, national origin, sex, handicap (disability), and familial status. State and/or local laws may contain additional protected classes.
Would it be discriminatory for a Republican homeowner to refuse show his home to a member of the Democratic Party? A)Yes it would be discrimination on the basis of disability. B)Yes it would be discrimination on the basis of national origin. C)Yes it would be discrimination on the basis of religion. D)No, it is legal to discriminate on the basis of political beliefs.
The answer is no, it is legal to discriminate on the basis of political beliefs. While members of political parties are not members of protected classes, it would not usually be wise to support such discrimination without checking with legal counsel.
An aggrieved person who believes illegal discrimination has occurred may file a complaint within _________________ of the alleged discriminatory act? A)six months B)18 months C)two years D)one year
The answer is one year. If the complaint is filed with HUD, the complaint will be referred to the Texas Workforce Commission Civil Rights Division (TWCCRD) because Texas has a HUD-approved "substantially equivalent" fair housing program that allows complaints to be heard at the state level rather than at the federal level.
The federal Fair Housing Act of 1968 A) prohibits racial discrimination in any real estate transaction. B) prohibits discrimination in residential housing based on marital status, age, and dependence on public assistance. C) prohibits discrimination in residential housing based on race, color, national origin, and religion. D) applies solely to the prohibition of discrimination in housing that receives federal funding.
The answer is prohibits discrimination in residential housing based on race, color, national origin, and religion. The Civil Rights Act of 1866 prohibits all discrimination based on race in any real estate transaction without exception. The Civil Rights Act of 1964 prohibits discrimination based on race, color, religion, or national origin in housing that receives federal funding. The Fair Housing Act of 1968 prohibits discrimination based on race, color, national origin, and religion, with specific exceptions. Amendments to the Fair Housing Act add gender, familial status, and disability to the protected classes. The Equal Credit Opportunity Act prohibits discrimination in making loans for residential housing based on race, color, religion, national origin, gender, marital status, age, and dependence on public assistance.
Would placing a for-rent advertisement that states "kids OK" represent a violation of the Fair Housing Act? A)Yes, because it could be viewed as expressing a preference for families over seniors and single individuals B)No, as long as the "kids" were under 18 and under the supervision of an adult C)No, but landlords could still bar families with children in the juvenile detention system D)No because children are now protected under the Act
The answer is yes, because it could be viewed as expressing a preference for families over seniors and single individuals. The Fair Housing Act is intended to open housing markets to all, meaning that advertising a preference for families would be viewed in the same light as advertising a preference for white renters.
Steering
The channeling of prospective home purchasers or renters, by real estate brokers or salespersons, into racially homogeneous neighborhoods, and actively discouraging them away from neighborhoods of different racial or ethnic composition.
What tragic event helped spur passage of the Fair Housing Act of 1968? A)The assassination of Robert F. Kennedy B)The assassination of Martin Luther King Jr. C)The Watts riots in Los Angeles D)The barrio riots in Chicago
The correct answer is the assassination of Martin Luther King Jr. The bill had passed the Senate earlier in the year but was given little chance of passing the House until King's death. It was passed shortly thereafter and signed by President Lyndon Johnson.
Civil Rights Act of 1968
a law that banned discrimination in housing based on color, race, religion and national origin
