Fair Housing Laws

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 commercial buildings. - ADA discriminates: Employment, Public Transportation, Public Accommodations and Commercial Facilities, Telecommunications, Miscellaneous

sexual orientation; gender identity

014 amendment to the REALTOR® Code of Ethics added _______ and _______ as protected classes

Redlining

A process by which banks draw lines on a map and refuse to lend money to purchase or improve property within the boundaries.

Jones v. Mayer

An court case in 1968 of the U.S. Supreme Court that upheld the Civil Rights Act of 1866

Race Color Religion National origin Sex Disability Familial status Families Crave Resorts Not Small Damp Rooms

Fair Housing Act includes seven protected classes:

A

How long does person who believes that they have been injured by the discriminatory practices of a real estate license holder have to file a complaint with HUD? A) one year B) two years C) six months D) five years

familial status discrimination

If a child is living with a person who has parental or legal custody designated in writing, then that household is also protected against

rental of rooms/units in owner occupied property (with no more than 4 units) if owner resides in one of the units

Owner occupied property Exemptions for the Fair Housing Act

A

Protected classes in the Fair Housing Act of 1968 include race, color, religion, national origin, sex, disability, and what other category? A) familial status B) income C) gender presentation D) sexual orientation

B

The protected class of disability is defined as anyone who has: A) a physical impairment that affects the performance of major life activities B) a physical or mental impairment that affects the performance of one or more major life activities C) a mental impairment that affects the performance of some significant activities D) an addiction to illegal drugs

18

To maintain a protected status, children must be under ____ years old

D

What is a protected category according to Texas fair housing laws, but not national ones? A) religion B) student status C) familial status D) ancestry

B

Which of these tenants is protected by the Fair Housing Act? A) a man with an unmedicated mental illness and a history of violence B) a seeing-impaired woman who uses a service dog in a pet-free building C) a woman with a heroin addiction D) a man whose 18-year-old high school senior son lives at home with him

C

Why do most brokerages fall within the scope of the ADA, and therefore must be extra careful about accessibility? A) because they have under 15 employees B) because there is an addendum to ADA specifically pertaining to brokerages C) because of their location or because they have 15 or more employees D) because it becomes a fair housing issue if brokerages are inaccessible

The National Association of Realtors (NAR)

__________ includes sexual orientation and gender identity as protected classes

Housing and Community Development Act

a 1988 amendment to the Fair Housing Act that added familial status and disability to the list of protected classes

Steering

is the illegal act of channeling buyers or tenants to certain areas based on demographics

Texas Property Code

landlord-tenant laws affecting residential real estate like repairs, security deposits, security devices,smoke detectors and other situations

Civil Rights Act of 1964

outlawed discrimination based on race, color, religion, sex, or national origin

1997 Omnibus Appropriations Act

Act where Congress established "a privilege for lender-initiated self-tests of residential real estate related to lending transactions" as part of their efforts to ensure fair lending practices. In essence, this privilege allows lenders to conduct self-tests to evaluate their lending practices.

C

Landlords are required to allow tenants to make modifications to their property in order to accommodate their disability. Who's responsible for paying for these modifications? A) the landlord B) the local city government C) the tenant D) 50/50 split between the tenant and landlord

modifications

Landlords may require tenants to pay for ________ and may require tenants to return the property to its unmodified condition at the end of the lease.

Landlord Tenant Law

Leases function as both a list of rights of obligations of the owner (Landlord) and possessor (Tenant) of the property and as an encumbrance on land.

non-dwelling buildings

The Fair Housing Act does not cover

Civil Rights Act of 1866

law that established federal guarantees of civil rights for all citizens

- Businesses with 15 or more employees - Any facilities or offices affiliated with state or local government - Public and private schools - Hospitals and dental offices - Restaurants - Hotels and motels - Grocery and retail stores - Shopping malls - Libraries and museums - Banks - Theaters - Amusement and recreation parks

Here are the kinds of businesses and establishments affected by the ADA:

B

If a lender refuses to make Harry a 30-year mortgage just because Harry is 85 years old, they will have violated: A) CFPB B) ECOA C) RESPA D) CRA

True

Under the ECOA, it is legal for a lender to ask if a borrower is separated. TRUE FALSE

Bank of America v. Miami

case where the city of Miami filed a lawsuit against Wells Fargo and Bank of America. The city claimed that these banks targeted minorities for extremely risky mortgages with high-interest rates and exorbitant fees.

- Housing operated by religious organizations and private clubs that limit occupancy to members

member only orgs Exemptions for the Fair Housing Act

Blockbusting

refers to the practice of encouraging the panic selling of homes below market value, generally by raising fears that an influx of individuals belonging to a particular minority group will decrease property values in a neighborhood and affect the area negatively.

Fair Housing Act

- The federal law that prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, and national origin - it is unlawful to refuse to sell, rent to, or negotiate with any person because of that person's inclusion in a protected class.

1. Irreparable harm will more than likely result without immediate action. 2. Substantial, compelling evidence exists that indicates a violation of the fair housing laws.

A fair housing complaint that requires immediate action meets the following conditions:

12 months

A lease longer than ______ needs to be made up of in the state of Texas

financial standing

A lender may ask only questions that are relevant to an individual's _______

D

A tenant comes to a property manager asking to put in shower bars to accommodate their disability. When they property manager informs the landlord, the landlord balks, because the tenant is not a wheelchair user. What should the property manager do? Choose the BEST option. A) Inform the landlord that not all disabilities are visible, and warn them they could be violating the Americans With Disabilities Act by refusing the accommodation. B) Tell the tenant the landlord said no, because they are not a wheelchair user. C) Tell the tenant that if they want to make alterations to the property, their rent will go up $150 a month. D) Inform the landlord that not all disabilities are visible, and warn them they could be violating the Fair Housing Act by refusing the accommodation.

Community Reinvestment Act (CRA)

Act requires lenders to assist their local communities by participating in community development projects. The Act also says that lenders need to submit an annual statement including public comments about their attempts to help low-income communities. The CRA extended and clarified the long-standing expectation that banks will serve the convenience and needs of their local communities.

Equal Credit Opportunity Act (ECOA)

Act that makes it illegal for a lender to discriminate against borrowers based on their membership in a protected class. Specifically, the Act makes it illegal to: - Refuse borrowers credit if they qualify for it - Discourage anyone from applying for credit - Offer anyone credit on terms that are less favorable (example: higher interest rate) than terms offered to someone with similar qualifications - Close their account

A

An elderly couple is going to rent their vacant basement for extra income. The couple does not want a family with children. The couple asks their granddaughter, who is a real estate agent, to help them with finding tenants. Is this legal? Why or why not? A) No, the couple is not allowed to discriminate against families with children if they are helped by their granddaughter because she is a license holder. B) Yes, since the couple is renting their own space, they are exempt from discriminating against families with children. C) Yes, but the couple will only be allowed to discriminate against families with children if they do not pay their granddaughter any type of commission. D) No, it is never legal to discriminate against families with children.

B

Carla has clients looking for a rental property who only speak Spanish. What should she do to accommodate them? A) only show them properties with Spanish-speaking landlords B) provide them with the official translated lease forms C) only show them properties in majority Spanish-speaking areas D) tell them it will be hard to find a property that "meets their special needs"

1. The housing is occupied only by persons who are 62 years of age or older. 2. 80% of the housing units have at least one occupant who is 55 years old or older. 3. The housing is provided under any state or federal program that the Secretary of Housing and Urban Development determines is designed and operated to provide assistance to the elderly.

Housing for older persons is also exempt from the familial status requirements of the Fair Housing Act if one or more of the following three conditions apply:

D

Sally and Fred are two single people buying a home together. The lender is threatening to deny them a loan because he does not like their lifestyle. If the lender does that, it will be a violation of the: A) RESPA B) CFPB C) CRA D) ECOA

Single family residences sold/rented by owner if owner does not own more than 3 single family residences at once

Single Family Residence Exemptions for the Fair Housing Act

illegal

Someone who is currently using ______ is not protected under the Fair Housing Act

Quality Housing and Work Responsibility Act of 1998

This act required HUD to set reasonable limitations on the number of occupants allowed in a dwelling. HUD concluded that a "two occupants per bedroom" rule — taking other factors into consideration — constitutes a good basic model.

Home Mortgage Disclosure Act

This act requires lenders to disclose specific lending information, which HUD then uses to map lending patterns.

- A lender may not ask if an applicant is divorced or widowed, but may ask if a borrower is married, unmarried, or separated. - The lender may not ask about the receipt of alimony or child support unless the borrower intends to use that money to qualify for the loan, but may ask if a borrower must pay alimony or child support. - A lender may not ask about a borrower's birth control or intentions for childbearing. - A lender may not ask about a borrower's spouse unless that person will be involved in the contract. - A lender may not discount or exclude any income because of the source of that income. - A lender must report credit information on married couples separately in the name of each spouse. - A lender may not ask about the applicant's race or national origin.

What a lender may not ask:

D

What federal act was passed to help eliminate redlining? A) the Federal Fair Housing Act B) the Real Estate Settlement Procedures Act C) the Consumer Financial Protection Bureau D) the Community Reinvestment Act

C

What is the best definition of blockbusting? A) the practice of advising a person seeking to buy or rent a dwelling in a manner that perpetuates segregated housing B) the practice of changing the financial terms of a loan because of an applicant's membership in a protected class C) the practice of encouraging people to sell their homes due to beliefs about how the entry of a protected class will affect an area's property values D) the practice of limiting the number of loans or the loan-to-value ratio in certain areas of a community or city

C

What two important classifications were added to the list of protected classes under the 1988 Housing and Community Development Act amendment? A) sex and race B) religion and color C) familial status and disability D) income and age

A

Which of the following statements accurately describes the basic issues involved in the Jones v. Mayer Co. case? A) A real estate company refused to sell a home because of the prospective buyer's race and was found guilty of violating the Civil Rights Act of 1866. B) A real estate agent refused to show a property due to the renter's religion and was found guilty of violating the Thirteenth Amendment. C) An owner refused to make an exception to a "no pets" policy and was found guilty of violating the federal Fair Housing Act. D) An owner refused to rent out a home due to the lessee's sexual orientation and was found guilty of under Title VIII of the Civil Rights Act of 1968.

1. People too young to enter a legal contract 2. People who don't have the means to obtain a home loan

While many are protected under the laws we've just discussed, there are two groups that a real estate license holder has the legal right to turn down in certain situations:

Landlords

_______ must allow tenants to make reasonable modifications so that people with disabilities can enjoy their properties.

reasonable accommodation

is a change in rules, policies, or practices that may be necessary to afford a person with a disability an equal opportunity to use or enjoy a dwelling, such as assistance in filling out a rental application or allowing a unit transfer

Conciliation

is an attempt to resolve the issues raised by a complaint or an investigation through informal negotiations between the aggrieved person, the respondent, and the HUD Secretary.

Executive Order 11063

prohibited discrimination in the selling or leasing of property owned or funded by the federal government, including those properties relying upon Veterans Administration (VA) and Federal Housing Administration (FHA) loans

Americans with Disabilities Act (ADA)

prohibits discrimination against people with disabilities in employment, transportation, public accommodation, communications, and governmental activities.

HUD's Equal Access Rule

when it comes to HUD, owners or operators of HUD-assisted housing, as well as Federal Housing Administration-approved lenders, may not discriminate on the basis of sexual orientation, gender identity, or marital status in HUD housing programs. This is in addition to the protected classes under the federal Fair Housing Act