Unit 3: Fair Housing

Under the Civil Rights Act of 1968, what is the time limit to file a housing discrimination complaint with HUD?

1 year. Persons who wish to file a complaint with HUD under Title VIII of the Civil Rights Act of 1968 must do so within one year of the alleged violation.

The provisions of the ADA apply to any employer with at least

15 or more employees. Employers must make reasonable accommodations that enable an individual with a disability to perform essential job functions.

For fair housing purposes, what is the definition of the term disability?

An impairment that substantially limits one or more of an individual's major life activities. The definition of the term disability is very broad and focuses on impairments that prevent or restrict a person from performing tasks that are of central importance to most people's lives.

The Fair Housing Act is administered by the

Department of Housing and Urban Development. The Department of Housing and Urban Development (HUD) handles fair housing complaints on the national level. Most states have enacted substantially similar laws, so often it is the state agency that is involved.

Which of these laws extended housing discrimination protections to families with children and persons with disabilities?

Fair Housing Amendments Act of 1988. The Fair Housing Amendments Act of 1988 added disability and familial status. The Housing and Community Development Act of 1974 added sex to the list of protected classes, which is found in Title VIII of the Civil Rights Act of 1968. The Civil Rights Act of 1866 prohibits discrimination based on race.

If a tenant has a visual disability and needs an assistance dog, the landlord can require a higher security deposit than for other tenants.

False. A landlord cannot increase the customary security deposit only for tenants with disabilities.

A church violates the Fair Housing Act if it owns and operates rental housing only for its member employees and others who belong to the religion.

False. A religious organization may restrict occupancy of dwelling units that it owns to members of the organization. However, membership in the religion must not be restricted on the basis of race, color, or national origin.

Redlining is the act of encouraging people to sell or rent their homes on the basis that the entry of members of a protected class into the neighborhood will reduce property values

False. Blockbusting is the act of encouraging people to sell or rent their homes on the basis that the entry of members of a protected class into the neighborhood will reduce property values.

The Fair Housing Act prohibits landlords from asking potential tenants for citizenship or immigration documents during the screening process.

False. However, HUD provides a specific procedure for collecting and verifying citizenship papers.

Individuals who believe they are the victim of illegal discrimination in a real estate transaction may file a complaint with HUD within three years of the alleged act.

False. Individuals who believe they are the victim of illegal discrimination in a real estate transaction may file a complaint with HUD within one year of the alleged act.

A real estate professional is obligated to provide ethnic-diversity information to homebuyers.

False. Pursuant to the 2001 case Hannah v. Sibcy Cline Realtors, a real estate professional is not obligated to provide ethnic-diversity information about a neighborhood to a homebuyer.

While not valid considerations for the underlying real estate transaction, these factors may be considered by an appraiser in evaluating a property: race, color, religion, national origin, sex, disability, and familial status

False. Race, color, religion, national origin, sex, disability, and familial status may not be considered in any formal or informal appraisal or evaluation of a property.

There are no exemptions under the federal Fair Housing Act.

False. The Civil Rights Act of 1866, as interpreted by Jones v. Mayer, does not allow any exemptions involving race. Under the federal Fair Housing Act of 1968, some exemptions exist for small investors and certain organizations.

The Civil Rights Act of 1968 applies only to race.

False. The Civil Rights Act of 1968 applies to housing discrimination based on race, color, religion, and national origin.

The Fair Housing Act is administered by the county in which the property is located.

False. The Fair Housing Act is administered by the Department of Housing and Urban Development (HUD), a federal agency.

The purpose of the civil rights laws that affect the real estate industry is to make everyone equal.

False. The purpose of the civil rights laws that affect real estate is to create a marketplace in which all persons of similar financial means have a similar range of housing choices.

Under HUD regulations, a dwelling is limited to single-family houses, condominiums, and cooperatives.

False. Under HUD regulations, a dwelling includes single-family houses, condominiums, cooperatives, mobile homes, and vacant land on which any of these structures will be built.

Under the Fair Housing Act, what is HUD's first action on receiving a complaint of illegal discrimination?

Investigates for reasonable cause to bring a charge. Within 100 days of the filing of the complaint, HUD either determines that reasonable cause exists to bring a charge of illegal discrimination or dismisses the complaint.

What is one negative result of redlining?

It is often a major contributor to the deterioration of older neighborhoods. Redlining is a prohibited practice by lenders and insurance companies. It frequently leads to the deterioration of older neighborhoods because loans are not made based on racial grounds as opposed to any real objection to an applicant's creditworthiness.

Under what conditions can someone refuse to rent to an African-American on the basis of race

Never. Under the Civil Rights Act of 1866, as reinforced by the Jones v. Mayer Supreme Court decision, there are no exemptions that permit someone to discriminate in housing simply because of someone's race.

A homeowner decides to rent a spare bedroom in her single-family house to a tenant for $50 per month. When a 24-year-old man asks to see the room, the homeowner refuses, telling him that she will only rent to women over the age of 50. The prospective tenant threatens to sue for a violation of the Fair Housing Act on the basis of age. Should the homeowner be concerned?

No, because the rental of rooms in an owner-occupied single-family home is exempt from the Fair Housing Act. The woman is exempt from the law because she will be renting a single room in her home.

A landlord rented an apartment to a person with a wheelchair. He allowed the tenant to install bath rails and replace the bathroom sink vanity with a pedestal sink with lever faucet handles. However, the landlord required the tenant to sign a restoration agreement that the accommodations would be restored to the former condition at the end of the lease because the vanity provided desirable storage space in the bathroom. In addition, he required the tenant to pay sufficient funds (over a period of time) into an escrow account to restore the bathroom. Has the landlord violated the Fair Housing Act?

No, the landlord can require a restoration agreement and the escrow account. The landlord must permit these reasonable modifications; however, he can require the restoration agreement and escrow account.

Which of these are exempt from the federal Fair Housing Act?

Owner-occupied buildings with no more than four units. Other exemptions include single-family housing sold or rented without the use of a real estate professional and housing operated by organizations and private clubs that limit occupancy to members.

A newspaper advertisement states, "One-bedroom apartment immediately available. Good neighborhood. Only able-bodied individuals should apply." Which of these is TRUE?

The ad is not permitted under HUD's advertising guidelines because it discriminates on the basis of disability. The ad discriminates against prospective tenants who are disabled. The remark, "Good neighborhood," is acceptable pursuant to HUD advertising guidelines.

A landlord refuses to rent a vacant apartment to a couple with two small children because he is concerned the children will disturb the sick and elderly woman in the apartment next door. Which of these is most likely TRUE?

The refusal constitutes a violation of the Fair Housing Act because it discriminates on the basis of familial status. Although the landlord's intent is to make things easier for the sick and elderly tenant, the refusal violates the Fair Housing Act by discriminating on the basis of familial status.

The fair housing laws under the disabled persons classification protect persons with AIDS

True. A disability is a physical or mental impairment; persons with AIDS are protected by the fair housing laws under this classification.

If a real estate professional says to a potential seller that the neighborhood is "changing" and "isn't what it used to be," that message may be considered blockbusting

True. Blockbusting is the act of encouraging people to sell or rent their homes by claiming that the entry of a protected class of people into the neighborhood will have some sort of negative impact on property values.

Failure to prominently display the Equal Housing Opportunity poster can be considered evidence of discriminatory practices.

True. Failure to display the Equal Housing Opportunity poster can be considered prima facie evidence of discriminatory practices.

Failing to comply with state and federal fair housing laws may subject a real estate professional to both fines and disciplinary action.

True. Real estate professionals must comply with fair housing laws and cannot allow discriminatory attitudes of property owners or property seekers to affect compliance with fair housing laws.

Channeling home seekers to particular neighborhoods based on noneconomic factors is an illegal practice called steering.

True. Steering is the illegal channeling of prospective home buyers to particular neighborhoods, or by discouraging potential buyers from considering some areas based on the basis of a protected class.

The ADA Accessibility Guidelines contain ADA's specific requirements for curb ramps, elevators, and other measures to make spaces accessible for people with disabilities.

True. The ADA Accessibility Guidelines contain these specifications.

One reason that real estate professionals need to be concerned about meeting requirements of the ADA is because their offices are public spaces.

True. The Americans with Disabilities Act (ADA) is important because real estate brokers are often employers, and their offices are public spaces.

There are no exceptions to HUD's rules regarding statements of preference or limitations in advertising regarding race.

True.Advertisements of property for sale or rent may not include language indicating a preference or limitation.

A woman met with a landlord to view a two bedroom apartment. She has two children and is also pregnant. The landlord told her that the rules of the building allow only two children per two-bedroom apartment, so he cannot rent to her. Is this a violation of the Fair Housing Act?

Yes, indicating a preference for a certain number of children as occupants is illegal discrimination on the basis of familial status. Occupancy standards must be based on objective factors, such as sanitation or safety, not number of children.

One of the provisions of the Fair Housing Amendments Act of 1988 is

a change that made the penalties for violations more severe, and it also added additional damages. The Fair Housing Amendments Act of 1988 expanded federal civil rights protections to familial status and disability. The Act also changed the penalties by making them more severe and by adding additional damages.

All of these people are considered members of protected classes EXCEPT

a person convicted of the manufacture or distribution of illegal drugs. Persons convicted of manufacturing or distributing illegal drugs do not enjoy any protections under the Fair Housing Laws, although disability is a protected class. Individuals who are participating in addiction recovery programs are in a protected class of disability.

The resolution of a fair housing complaint by obtaining assurance that the respondent will remedy the violation is called

conciliation. Conciliation attempts to resolve the complaint without further legal action, such as an administrative proceeding. However, a conciliation agreement can be enforced through civil action.

A real estate broker sends a bright yellow flyer to all the homeowners in a neighborhood. The flyer contains a reprinted article from a local newspaper describing the future relocation plans of various employers in the region and this statement, printed in bold red letters: "Warning! The failure to sell your property within the next six months could cost you a bundle!" At the bottom of the page was printed the broker's name, photo, office address, and phone number. Based on these facts, the broker

has committed no offense. Although perhaps in poor taste, the broker is simply distributing a published newspaper article to which anyone has access. He is also not making any statements about a protected class of people moving into the neighborhood.

In the context of a dispute before HUD, the term conciliation is BEST defined as the

informal resolution of a dispute by obtaining assurances that the person responding to the complaint will remedy the violation. HUD can attempt to resolve the dispute informally through conciliation. Conciliation is the resolution of a complaint by obtaining assurance that the person against whom the complaint was filed will remedy any violation that may have occurred.

Real estate professionals may have a legal obligation to comply with the ADA because they

may be employers. Many real estate professionals are brokers who own an office, and the real estate office should be accessible to the public, including a person with a disability.

A seller tells a real estate professional "don't show my house to anybody not born in the United States." In this circumstance, the professional

must decline to take the listing with this requirement. An instruction to not show the home to someone who was not born in the United States violates the Fair Housing Act. The real estate professional should not take the listing with this requirement. He cannot simply ignore the instructions or pretend they do not exist.

An occupancy requirement is exempt from familial status protection under the Fair Housing Act if the housing is intended to be occupied by

persons 62 years of age or older. Housing is exempt from the familial status protections if it is intended for occupancy only by persons 62 years of age, or for occupancy in 80% of its units by at least one person 55 years of age or older. Strict rules for ongoing verification and reporting are imposed on this second alternative.

The Fair Housing Act does NOT prohibit discrimination on the basis of

sexual preference. Sexual preference is not a protected class under the federal law, but it has been added to many city and state fair housing laws.

A neighborhood has a large Asian population. When a Chinese couple came to a broker to look for a home to buy, he suggested they look at listings only in this neighborhood. The broker violated the Fair Housing Act because his actions constitute

steering. Channeling home seekers toward or away from particular neighborhoods based on national origin, or any of the other protected classifications, is called steering.

Complaints of discriminatory housing practices filed with HUD will be referred to a local enforcement agency if

the state or municipal law is substantially equivalent to the federal law. If a state or local law is substantially equivalent to the federal law, all complaints filed with HUD are referred to the local enforcement agencies.