Chapter 16 Fair Housing Misrepresentation

What is the practice called of influencing owners to sell because of the possible entry into the area of people of a certain race or color? a. Redlining b. Slum lording c. Residential Blocking d. Blockbusting

Blockbusting (d)

Which law extended discrimination to include handicap and familial status? a. Jones v Mayer b. Housing and Community Development Act c. Civil Rights Act of 1968 d. Fair Housing Amendment Act

Fair Housing Amendment Act (d)

If a person feels like he or she has been discriminated against, how long does that person have to file a complaint?

With HUD - within one year of the alleged act In state or federal court - within two years of the alleged act

What is the best response to questions regarding protected classes? a. "I can only respond to those type of questions in writing." b. "I can best respond to your questions in my office." c. "I am prohibited by federal law from discussing race, color, religion, national origin, gender, handicap and familial status." d. "You must submit your questions to my managing broker."

"I am prohibited by federal law from discussing race, color, religion, national origin, gender, handicap and familial status." (c)

The owner of a commercial property might have to make changes to a building to bring it into ADA compliance. Such changes might include:

- Adding ramps to the front entrance or accessible parking spaces. - Widening doorways or aisles. - Installing elevators. - Improving restroom facilities by adding wider stalls, higher toilets or grab bars.

To qualify for exempt status, both of these two conditions must be met:

- Services of real estate licensees were not used. - Discriminatory advertising was not used.

If the court finds that discrimination has occurred, the person filing the complaint may be entitled to:

1. Actual damages 2. Punitive damages 3. Attorney's fees and costs

The Federal exemptions to the 1968-88 laws

1. The sale or rental of a single family home by an owner is exempt if the owner does not own more than three homes at one time, does not use discriminatory advertising and does not use a real estate agent. 2. Rental of units in an owner-occupied, one-to-four family dwelling is exempt, as long as the owner does not use an agent to secure tenants. 3. Religious organizations may restrict housing to members of the same religious organization. Non-profit religious organizations can add a surcharge to the sale or rental of a property to a person that does not belong to their religious group, as long as the membership in the group is not limited by race, color or national origin. 4. A private club may restrict rental or occupancy of its dwellings to members only, as long as the dwellings are not commercially operated. However, the club may not discriminate in its membership requirements. 5. Senior citizen housing is exempt if 80% of the units are occupied by at least one person 55 or older and if it publishes and follows policies and procedures that demonstrate the intent to be 55-and-older housing.

An Administrative Law Judge (ALJ) will consider evidence from both the complainant and the respondent. If the ALJ decides that discrimination occurred, the respondent can be ordered:

1. To compensate for actual damages, including humiliation, pain and suffering. 2. To provide injunctive or other equitable relief; for example, to make the housing available to the complainant. 3. To pay the Federal Government a civil penalty to vindicate the public interest. 4. To pay reasonable attorney's fees and costs. 5. In addition to or instead of filing a complaint with HUD, a person may file a suit in a state or federal court within two (2) years of the alleged violation.

Alex Jones owns a duplex and lives in one unit. He refuses to rent the other unit to families with children. What would you say about Alex's actions?

Alex is within the guidelines of the Fair Housing Act since he is the owner of a dwelling that has fewer than four units, one of which is owner-occupied.

Licensee Responsibility - Education

All licensees should attend annual education in fair housing laws. In this way, if there are changes in the laws or in the way the courts are interpreting the laws, the licensee will be knowledgeable and therefore better able to avoid the many pitfalls found in daily practice.

Which of the following is NOT an aspect of familial status? a. At least one adult with children under 18 years of age b. An illegal drug user under the age of 18 years of age c. A person who is pregnant d. A person who is in the process of securing legal custody of a child

An illegal drug user under the age of 18 years of age (b)

If a person files a complaint under the Fair Housing laws, the HUD administrative law judge can award actual damages, or do what? a. Grant an injunction. b. Grant equitable relief. c. Grant civil penalties up to $50,000.00. d. Any of the above.

Any of the above. (d)

Which of these situations would not be discriminatory? a. A white buyer asks about the racial composition of a neighborhood and the agent Mary answers truthfully that it is predominantly minority. b. Todd is the listing agent for a home in a neighborhood that is predominantly minority. He decides to advertise in the local neighborhood newspaper and nowhere else because he thinks only other minorities would be interested in the home. c. ABC Realty uses a marketing plan that lets minority buyers know about the property that is available in predominantly white neighborhoods. d. Belinda has a white buyer who has requested that Belinda not show her property in a minority neighborhood and Belinda replies "I am prohibited by federal law from discussing race, color, religion, national origin, gender, handicap and familial status."

Belinda has a white buyer who has requested that Belinda not show her property in a minority neighborhood and Belinda replies "I am prohibited by federal law from discussing race, color, religion, national origin, gender, handicap and familial status." (d)

Why is it important for licensees to understand the Americans with Disabilities Act?

Brokers need to evaluate whether they need to make physical changes to their office space to comply with the law. Licensees should inform their commercial and investor clients of the need to have their leases professionally evaluated and their offices inspected for compliance.

Give four examples of words or phrases—with regard to handicap--that would be considered discriminatory and three that would not, when writing an ad.

Discriminatory: No wheelchairs, able-bodied persons only, no deaf, or no handicapped parking.Non-discriminatory: Fourth-floor walk-up, walk-in closets, wheelchair ramp.

Fair Housing Law - Prohibited Acts

Fair Housing Law prohibits a number of activities in real estate. These activities include: - Refusing to sell, rent or negotiate with any person. - Changing terms, conditions or services for different individuals as a means of discrimination. - Stating or advertising that the property is restricted. - Telling persons that a property is not for sale or rent when it is. - Denying membership in any multiple listing service (MLS) or any broker's organization. - Using discriminatory advertising. - Giving different terms for loans to buy or repair or denying a loan altogether. Fair Housing Law also prohibits these activities. - Blockbusting, panic peddling or panic selling - Making a profit by inducing owners to sell by telling them that persons of a protected class are moving into the neighborhood, which will have detrimental results, such as the lowering of the property values - Steering - Channeling homebuyers toward or away from homes in certain neighborhoods in order to preserve or alter the makeup of that neighborhood - Redlining - Restricting the number of loans in certain areas of a community because of its racial or ethnic makeup

Fair Housing Law - Important Legislation

Fair Housing law first began with the Civil Rights Act of 1866, which prohibited discrimination in housing based on race. Title VIII of the Civil Rights Act of 1968 prohibited discrimination in housing based on race, color, religion or national origin. In 1968, the Supreme Court in Jones v. Mayer ruled that discrimination on the basis of race is strictly prohibited. This means there can be NO EXEMPTIONS OR EXCEPTIONS with regard to race. In 1974, the Housing and Community Development Act added sex to the list. In 1987, a Supreme Court decision expanded the definition of race to include ancestry. And in 1988, the Fair Housing Amendments Act added handicap and familial status. Based on these laws the list of protected classes of the Federal Fair Housing Act are: - Race - Religion - Color - National origin/Ancestry - Sex - Handicap - Handicap status includes both physical and mental handicaps. If the handicap is not readily observable, it is the obligation of the handicapped person to furnish proof of his or her handicap. - Familial status - Familial status is defined as at least one adult with children under 18 years of age, a person who is pregnant and a person who has legal custody of a child or is in the process of securing legal custody.

Enforcement of the federal fair housing laws is primarily the function of a. the Equal Housing Board. b. the Fair Housing Commission. c. HUD. d. the Protected Class Board.

HUD (c)

Jane is doing a listing presentation for Paul. Paul says that he wants Jane to "screen" prospective buyers, being careful not to show the home to anyone who could "change" the neighborhood in any way. What should Jane do?

Jane needs to discuss fair housing laws with Paul, and if she senses or feels that he would be reluctant to comply with the law, she should not list Paul's home.

Which of the following would not be considered a discriminatory phrase in advertising? a. No bicycles allowed b. Able-bodied persons only c. Mature individuals d. No handicapped parking

No bicycles allowed (a)

Fair housing laws do not allow exemptions for a. race. b. gender. c. religion. d. disabilities.

Race (a)

Licensee Sally tells her senior citizen buyers that the home they want to view is located in a neighborhood with several small children and loud teenagers. She tells them they would not be comfortable in this home, and she shows them a list of homes in other neighborhoods she thinks would be more appropriate. What would you say about Sally's behavior?

Sally is guilty of steering, which is prohibited by Fair Housing laws.

To qualify for fair housing exempt status, which two conditions must be met? a. All rental units must be Section 8 housing and all units must be rented to a person under the age of 45. b. A real estate licensee is used and advertising is limited to local markets. c. Services of real estate licensees are not used and discriminatory advertising is not used. d. All renters must be of the same faith based group.

Services of real estate licensees are not used and discriminatory advertising is not used. (c)

What must a licensee NEVER state or imply in any way about a member of a protected class moving into a neighborhood?

That a move into a neighborhood by a member of a protected class could or would impact that neighborhood by: - Lowering property values.Changing the composition of the neighborhood. - Making the neighborhood a more dangerous place. - Causing a decline in the quality of the local schools.

What legislation added handicap and familial status to the fair housing law?

The 1988 Fair Housing Amendments Act

The intention of these laws are basically to empower individuals in the protected classes to choose where they will live rather than having the choices made by others. To which laws does this refer? a. The federal and state fair housing laws b. The agency laws c. The Americans with Disabilities Act and laws d. The Sherman Antitrust Act laws

The federal and state fair housing laws (a)

Which of these is not an exemption to fair housing law? a. Senior housing for residents 55 or older b. A religious organization providing housing to members only c. The sale of a single-family home by an owner who owns five residences d. Rental of a unit in an owner-occupied four-family flat

The sale of a single-family home by an owner who owns five residences (c)

Licensee Responsibility - testing

Undercover volunteers posing as prospective buyers or renters may visit or telephone real estate sales or rental offices to determine whether customers are being treated equally. When testing for discriminatory practices, testers are not required to admit that they are testers even if directly questioned. Testers typically are conducting a policies and procedures investigation. This means that the entire range of services of the licensee or brokerage may be under observation. Licensees or brokers who may be guilty of a single act of discrimination are generally judged less harshly than those whose range of services is based on discriminatory acts.

Discriminatory advertising

advertising that indicates a preference, limitation or discrimination based on race, color, religion, handicap, sex, familial status or national origin. But it is sometimes difficult to know what actually constitutes discriminatory advertising. It is probably safe to say that any advertising that describes the property would be considered acceptable, while advertising that describes buyers could be considered discriminatory, especially if the buyers are from a protected class.

If a licensee decides not to take a listing because he or she suspects a potential discrimination problem they should

report the situation to the employing broker

Undercover volunteers posing as prospective buyers or renters to determine whether customers are being treated equally are known as a. testers. b. inspectors. c. auditors. d. Fair Housing inspection officials.

testers. (a)

Enforcement of the federal fair housing laws is primarily the function of a. the United States Department of Housing and Urban Development (HUD). b. the Fair Housing Act Commission. c. the United States EPA. d. the protected classes.

the United States Department of Housing and Urban Development (HUD). (a)

Fair Housing violations must be filed a. within five years of the occurrence. b. within three months after the occurrence. c. within six months of the occurrence. d. within one year after the occurrence.

within one year after the occurrence (d)

There is only one acceptable answer to any questions regarding protected classes:

"I am prohibited by federal law from discussing race, color, religion, national origin, gender, handicap and familial status."

Americans with Disabilities Act (ADA) - 1992

ADA mandates that persons with disabilities have equal access to jobs, public accommodations, government services, public transportation and telecommunications. It prohibits discrimination in the "full and equal enjoyment of goods and services" provided by public places, including hotels, shopping centers and offices, and it applies to the lease and operation of commercial facilities.