Real Estate Course Level 24

Quiz Level 24 b) Yes, although the landlord can require that Fred pay for the installation of the doggy door and its eventual removal. Yes, although the landlord can require that Fred pay for the installation of the doggy door and the removal when he moves out.

A landlord rents an apartment to Fred, who has a service dog. Fred asks the landlord to install a doggy door for Miss Pickle, so that she can waddle in and out as she pleases into the fenced backyard. Does the landlord have to accept the tenant's request? a) No, the landlord does not have to accommodate Fred's request. b) Yes, although the landlord can require that Fred pay for the installation of the doggy door and its eventual removal. c) Yes, and the landlord must pay for the doggy door's installation and removal, as well. d) The landlord only has to accommodate Fred's request if they change the no-pet policy for all tenants (able-bodied and disabled alike).

Scenario: Children's Access Answer 1: Yes, the manager violated the Fair Housing Act. He is discriminating against children, and families with children are protected under the "family status" protection in the FHA.

A manager of an apartment complex posts a notice stating that children can only be in the hallways and common areas from 5-7pm on weekdays. There is no restriction on the weekends. Question 1: Did the manager violate the Fair Housing Act? Why or why not?

Quiz Level 24 a) FALSE. Exemptions to the Fair Housing Act do not apply to real estate agents.

A real estate agent selling their own condo is exempt from the Fair Housing Act. a) FALSE. b) TRUE.

Chapter 5: Federal Disability Law

After completing this chapter, you will be able to: . Characterize the term "disability" . Identify required acts of modification, accommodation, and accessibility. . Understand and explain the rules and requirements set forth by the Americans with Disabilities Act and explain its exemptions. . Compare the federal Fair Housing Act to the Americans with Disabilities Act Why It Matters: You will absolutely work with people who have disabilities. There are a lot of important things to know, including required accommodations, modifications, and other best practices, so that your client can get the most out of their home. Key Terms: . disability or handicap . Americans with Disabilities Act

Chapter 6: Steering, Blockbusting, and Redlining

After completing this chapter, you will be able to: . Define steering, blockbusting, and redlining and give examples. Why It Matters: Here's a little secret: I've looked at a lot of real estate exams, Yoni . And guess what: There are nearly always questions about steering, blockbusting, or redlining, which are types of housing discrimination. You gotta know 'em for testing purposes, but more importantly, you gotta know 'em for life, so that you can continue to be a good person making good decisions. ❤️. Key Terms: . steering . blockbusting . redlining . tester

Chapter 8: Complaints, Enforcement, and Penalties

After completing this chapter, you will be able to: . Explain the role of the Department of Housing and Urban Development (HUD) in real estate and fair housing regulations. . Explain the role of the Georgia Commission on Equal Opportunity (GCEO) in real estate and fair housing regulations. . Demonstrate knowledge of the process of filing a fair housing complaint and describe consequences violators could encounter. Why It Matters: Now that you've learned all the do's and don'ts of fair housing, you're going to learn what happens when someone...DUN DUN DUN... breaks the rules. Key Terms: . Department of Housing and Urban Development.

Chapter 7: Advertising

After completing this chapter, you will be able to: . Identify words, phrases, and various advertising techniques that could violate fair housing legislation. Why It Matters: Agents help buy, sell, and rent housing. You know that. Well, how does word get out that housing needs to be bought, sold, or rented? You got it - advertisements. As a soon-to-be license holder, you need to know the rules when it comes to what to say, and what not to say, in a housing ad.

Level Assessment d) Yes. As long as Ajit can make a case for why his history of depression counts as a current disability, he can qualify as disabled under federal law.

Ajit has a history of major depression. However, he currently is not suffering from it. Can he qualify as disabled under federal law? a) No. Mental illness never qualifies as disability, only physical impairments. b) No. A person must be currently impaired in order to qualify as disabled under federal law. c) Yes. A person who has a record of a disability (though not currently impaired) qualifies as disabled under federal law. d) Yes. As long as Ajit can make a case for why his history of depression counts as a current disability, he can qualify as disabled under federal law.

Quiz Level 24 d) a genetic predisposition towards having a physical or mental impairment that affects one or more major life activities. A genetic predisposition towards having a physical or mental impairment that affects one or more major life activities is NOT part of the definition of disability.

All of the below are part of the definition of disability EXCEPT: a) a history of having a physical or mental impairment that affects one or more major life activities. b) a perception of having a physical or mental impairment that affects one or more major life activities. c) a physical or mental impairment that affects one or more major life activities. d) a genetic predisposition towards having a physical or mental impairment that affects one or more major life activities.

Quiz Level 24 d) promoting fair housing compliance only in print (not online) material. Fair housing practices apply just as much to online ads as print ads. The rest are all good practices.

All of the following are good advertising practices for a brokerage EXCEPT: a) using nondiscriminatory and inclusive language. b) distributing advertisements in many different neighborhoods. c) using images that reflect a diverse population. d) promoting fair housing compliance only in print (not online) material.

Quiz Level 24 a) FALSE. An agent does not have to answer every question, especially if the question is discriminatory.

An agent must answer every question a client asks. a) FALSE. b) TRUE.

Scenario: Maintenance Requests

An apartment complex's property manager allows maintenance requests to be filled in whatever order the maintenance team chooses. Five Black tenants go to the property manager and complain that their requests are routinely filled last.

The Takeaway

Another chapter down, Yoni ! You've learned about the discriminatory practices of steering, blockbusting, and redlining, and all the sneaky (and not-so-sneaky) ways that they can happen. In Chapter 6, you learned: ✅ To define steering, blockbusting, and redlining and give examples. The next chapter is all about discriminatory advertising practices. Get ready!

Classified Exemptions

As you may have gathered from the previous screens, there are two main cases where the Equal Housing Opportunity logo is not required, sometimes known as the classified exemptions. They are: 1. Classified advertising that is mostly text and in the classified section of a regularly published newspaper or magazine, as long as the ad is less than four column inches, or 2. If the HUD's Publisher's Notice appears at the beginning of the classified section of the newspaper or magazine.

National Association of REALTORS®

Besides HUD's consequences, a license holder can face the following consequences from NAR, if they are a member: . Letter of warning . Letter of reprimand . Required education . Appropriate and reasonable fine . Member put on probation . Membership suspended . Expulsion . Suspension or termination of MLS privileges

Quiz Level 24 a) FALSE. False. Compliance with HUD's Fair Housing Accessibility Guidelines is NOT mandatory.

Compliance with HUD's Fair Housing Accessibility Guidelines is mandatory. a) FALSE. b) TRUE.

Scenario: Maternity Leave Answer 1: Yes, the bank violated the federal Fair Housing Act. They discriminated on the basis of familial status, as the women who were on maternity leave did not receive equal services as the other women.

Five women call a bank about a mortgage loan. Three of them claim to be on maternity leave. These women are told by loan representatives that they would have to return to work and provide proof of one month's pay to close on a home. While on the phone, the women claim to have alternate incomes from their partners, sufficient savings, and/or paid maternity leave. Still, the bank does not take any of their applications. The bank does take the applications of the other two women, who did not say anything about maternity leave. Question 1: Did the bank violate the federal fair housing act?

Level Assessment b) one year. HUD requires that the complaint be filed within one year of the alleged violation.

Fran wants to file a fair housing violation with HUD. How long does she have, from the alleged violation? a) two years. b) one year. c) ten years. d) indefinitely.

Level Assessment a) prevent blockbusting. HMDA (Home Mortgage Disclosure Act) does not aim to prevent blockbusting. It does aim to accomplish the other tasks in the answer choices.

HMDA does NOT: a) prevent blockbusting. b) prevent redlining. c) prevent discrimination in the geographical distribution of loans. d) require lenders to disclose specific lending information.

Section 8 Housing

HUD manages Section 8 Housing, or a federally funded low-income housing program that allows private landlords to rent apartments and homes at fair market rates to qualified low-income tenants, with a rental subsidy administered by Home Forward. In this program, tenants pay about 30 percent of their income for rent, while the rest of the rent is paid with federal money. The number of units a local housing authority can subsidize under its Section 8 programs is determined by Congressional funding. Housing Choice Voucher Program: The largest part of Section 8 is the Housing Choice Voucher program, which pays a large portion of the rents and utilities of about 2.1 million households. This program allows a tenant to move from one unit of at least minimum housing quality to another through "tenant-based" rental assistance. It also lets individuals apply their monthly voucher towards the purchase of a home. The maximum allowed voucher is $2,000 a month. Landlord Compliance: While landlords are required to meet fair housing laws, they aren't required to participate in the Section 8 program. This means that some landlords will choose not to accept a Section 8 tenant.

ADA Titles Infographic

Here is a summary of the ADA's titles. in file (ADA_Titles) Title I: Employment business with 15+ people. Title II: Public Entities and Public Transportation. Title III: Public Accommodations & Commercial Facilities. e.g. doctors offices, movie theaters, hotels, golf courses. Title IV: Telecommunications. Title V: Miscellaneous e.g. insurance companies, attorney fees, and drugs.

Fair Lending Acts: A Summary

Here's a handy table that compares the fair lending acts. RESPA, ECOA, HMDA... it's acronym soup! Slurp up, Yoni . 🍲 in file (FairLendingActs) And now... shall we play a little game?!

Quiz Level 24 b) an accommodation. Hilary is asking for an alteration to normal policy on account of her mental illness; therefore, she is asking for an accommodation.

Hilary asks that the property manager of her complex always call before anyone (like a maintenance worker) comes over, because she has severe anxiety around strangers. What is Hilary requesting? a) a favor. b) an accommodation. c) a modification. d) special treatment.

Georgia Real Estate Commission 🍑

If the person charged with a fair housing violation is licensed, then GREC must be notified of the decision, as well. They can impose their own penalties, such as suspension or revocation of license.

A Note on Sexual Orientation

In addition to the protected classes under the federal Fair Housing Act, owners or operators of HUD-assisted housing (housing whose financing is insured by HUD), as well as Federal Housing Administration-approved lenders, may not discriminate on the basis of sexual orientation and gender identity in HUD housing programs.

Facts of a feather d) national origin

Iranian. a) race b) disability c) religion d) national origin

Advertisement #2 in file (EqualHousingAd_Core) Answer 1: The Equal Housing Opportunity logo is much too small. The ad is about 6 x 12 inches. For ads that are half a page or larger, the logo needs to be 2 x 2 inches. The logo here is about 1/2 x 1/2 inches.

Question 1: Evaluate the ad. What, if anything, is wrong with it?

Civil Rights Act of 1968

Shortly after the assassination of civil rights leader Dr. Martin Luther King Jr., Congress, with the help of President Lyndon B. Johnson, passed the Civil Rights Act of 1968. Title VIII of this act, also known as the Fair Housing Act, prohibited discrimination in real estate practices.

The Takeaway

So there you have it! Lenders and creditors cannot discriminate. As you know, finance is an important part of real estate, so it's important that you know about these fair lending rules. In Chapter 2, you learned: ✅ To discuss the history of fair lending legislation and explain its effects on real estate. Thanks for lending me your ears! 👂 Let's move on to some significant court cases!

Broker Responsibility

So, in addition to the things we've gone over in this level already, what role does a broker need to play in enforcing fair housing practices? Know the Rules 📏: If a broker is going to make sure their brokerage is always in full compliance with fair housing laws, they're going to need to know all the rules inside and out. Get Into the Community 🏙: Another great way for a broker to make sure they're in compliance with fair housing? Reaching out into the community. It would behoove brokers to establish working relationships with local fair housing organizations. Doing so will give them an even closer look into the issues that face local markets, and will spread more information about fair housing standards and rules. Educate Agents 🎓: Brokers should do their part and make sure their agents are getting the required fair housing training, as well as making sure that their agents are fully prepared when it comes to fighting for fair housing. More education is certainly better. On top of the required continuing ed course, brokers and brokerages should have certain practices put in place in order to minimize the chance of a fair housing violation. Keep Good Records 📔: It's important for each brokerage to have a specific system for their agents to keep records. For example, maybe the brokerage requires all emails to be saved as PDFs and stored in a shared folder, in order for the brokerage to have access to records. That way, everything said through email is visible to the broker. If the brokerage ever needs to issue a complaint or finds themselves on the receiving end of one (hopefully this doesn't happen and if it does, you might want to find yourself another brokerage), records of every email interaction and all paperwork involved in the transaction are extremely important. Put Up That Poster 📄: Also, remember from the previous chapter that a broker must put up HUD's fair housing poster in their office.

At the Apartment Level

Steering isn't limited to just neighborhoods, by the way. It can also occur within a building or even within a floor. EXAMPLES: . Families with children are not allowed to live on the top floor of the development. . An applicant is told that they should live in one building rather than another because they will be closer to other tenants of the same race or national origin. . Students and families with children are assigned to units on one side of a complex while single and older persons are assigned to units on another side.

HUD Complaint Process: Step 4

Step 4: HUD tries to reach an agreement. HUD attempts to form a conciliation agreement between the person the complaint is against (the respondent) and the person who filed the complaint. Note that HUD can also dismiss the case, if they decide no discrimination has occurred. A conciliation agreement must protect both the complainant and the public interest. If an agreement is signed, HUD ends their involvement there. However, if HUD has cause to believe that a conciliation agreement is breached, HUD will recommend that the Attorney General file suit. Conciliation: 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. Conciliation is also known as voluntary compliance. The respondent and the complainant can reach agreement during conciliation. For any such conciliation agreement to be binding, both parties must accept it; the agreement may also be subject to the HUD Secretary's approval.

Protected Classes

The Fair Housing Act prohibits discrimination in housing based upon these protected classes: . Race . Color . Religion . National origin . Sex (amended to include in 1974) . Disability (amended to include in 1988) . Familial status (amended to include in 1988) Fair Housing Amendment Act of 1988: This may come up on the licensing exam, so just know that this Act amended the Fair Housing Act to add "disability" and "family status" to the protected classes.

Quiz Level 24 a) Treat everyone who enters your real estate office exactly the same. The best way to avoid accusations of discrimination is to treat everyone who enters your real estate office exactly the same.

The best way to avoid accusations of discrimination is to: a) Treat everyone who enters your real estate office exactly the same. b) Keep thorough records of each client's background information. c) Cater your services to only one specific type of client. d) Don't speak publicly about your thoughts on a client of a different ethnicity.

Quiz Level 24 b) TRUE. True. A lender may ask if a borrower is married, unmarried, or separated under the ECOA.

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

Quiz Level 24 c) that racially restrictive covenants were unenforceable. Shelly v. Kraemer decided that racially restrictive covenants were unenforceable.

What did Shelly v. Kraemer decide? a) that "separate but equal" could not apply to schools. b) that "separate but equal" was always permissible. c) that racially restrictive covenants were unenforceable. d) that racially based zoning was unconstitutional.

Level Assessment b) to prohibit discrimination in housing

What is the main goal of federal fair housing laws? a) to make sure that every American can own a home b) to prohibit discrimination in housing c) to discipline agents who deal unfairly with clients d) to make sure that negotiations in housing transactions are fair.

Level Assessment a) the ADA. The ADA applies to public and commercial buildings, so these modifications are in compliance with that law. If these modifications had been in residential buildings, the Fair Housing Act would be the governing law.

Wheelchair ramps to the state capitol building and grab-bars in public restrooms are in compliance with which federal law? a) the ADA. b) Executive Order 11063. c) the Civil Rights Act of 1968. d) the Fair Housing Act.

Level Assessment b) Jones v. Mayor. Because of Jones v. Mayer, the Civil Rights Act of 1866 finally became enforceable.

Which court case made the Civil Rights Act of 1866 enforceable? a) Brown v. Board of Education. b) Jones v. Mayor. c) Plessy v. Ferguson. d) Shelly v. Kraemer.

Quiz Level 24 a) HUD. HUD enforces the federal Fair Housing Act.

Who enforces the federal Fair Housing Act? a) HUD. b) FCC. c) ADA. d) DOJ.

Fair Housing and Equal Opportunity Office (FHEO)

You may also see this office referred to as the Office of Fair Housing and Equal Opportunity and with the acronym OFHEO. The FHEO implements and enforces the Fair Housing Act and other civil rights laws, manages the Fair Housing Assistance Program (FHAP), works with other government agencies on fair housing issues, interprets policy, and processes complaints, among many other things.

Beyond Words

You should also know that it's not just words and slogans that matter in an advertisement. It's also the accompanying pictures, as well as how the advertisement is distributed. Images: An ad should give an adequate representation of all the different kinds of people who might seek housing. It should not, for example, show only white people. Distribution: It's illegal to only distribute advertisements to certain areas. So, for example, a broker shouldn't, say, advertise everywhere except the Vietnamese part of town.

Facts of a Feather c) steering.

an agent agrees to show a prospect houses only within a two-mile radius of Protestant churches. a) not a violation. b) blockbusting. c) steering. d) redlining.

Facts of a feather b) disability

has a mental illness. a) race b) disability c) religion d) national origin

Level Assessment c) Real Estate Settlement Procedures Act.

requires lenders to issue the Loan Estimate and Disclosure Form. a) Fair Housing Act. b) Home Mortgage Disclosure Act. c) Real Estate Settlement Procedures Act. d) Community Reinvestment Act.

Facts of a Feather d) redlining.

the Community Reinvestment Act and Home Mortgage Disclosure Act aim to prevent this. a) not a violation. b) blockbusting. c) steering. d) redlining.

Facts of a Feather d) redlining.

the Home Owners' Loan Corporation (HOLC) draws a line around a neighborhood on a map and give it a "D". a) not a violation. b) blockbusting. c) steering. d) redlining.

Facts of a feather b) disability

uses wheelchair. a) race b) disability c) religion d) national origin

Level Assessment d) Yes. In most states, the exemptions to the Fair Housing Act do not apply to license holders. Yes. In most states, the exemptions to the Fair Housing Act do not apply to license holders.

"Exemptions to the Fair Housing Act do not apply to real estate license holders." Is this statement TRUE? a) No. Exemptions to the Fair Housing Act do apply to license holders. b) Yes, as long as the license holder owns fewer than three single-family residences. c) Yes, as long as the license holder does not use discriminatory advertising. d) Yes. In most states, the exemptions to the Fair Housing Act do not apply to license holders.

Jones v. Mayer, 1968

In this 1968 U.S. Supreme Court case, Joseph Lee Jones, a Black man, claimed that Alfred H. Mayer Co., a real estate company in St. Louis County, Missouri, refused to sell him a house in a particular neighborhood because he was Black. The court decided that the Mayer company violated the 13th Amendment as well as 42 U.S. Code 1982, which provides that all citizens "shall have the same right, in every State and Territory, as is enjoyed by white citizens thereof to inherit, purchase, lease, sell, hold, and convey real and personal property." No Race-Based Discrimination in Housing: The result of this court case was that all discrimination based on race is illegal in the selling or renting of residential property. No exceptions. The Civil Rights Act of 1866: Though not very effective at the time, this Act helped provide the basis for this ruling. Because of Jones v. Mayer, the Civil Rights Act of 1866 finally became enforceable.

Level Assessment b) a business with nine employees. Among other categories, the ADA applies to buses and trains, as well as their stations; hospitals and dental offices; amusement and recreation parks; and businesses with 15 or more employees.

In which of the following examples would the ADA most likely NOT apply? a) an amusement park. b) a business with nine employees. c) a dental office. d) a bus station.

Level Assessment a) It depends. For a current user, it is not considered a disability. For a recovering user, it is considered a disability. It depends. For a current user, it is not considered a disability. For a recovering user, it is considered a disability.

Is alcoholism considered a disability? a) It depends. For a current user, it is not considered a disability. For a recovering user, it is considered a disability. b) No, under no circumstances. c) It depends. For a current user, it is considered a disability. For a recovering user, it is not considered a disability. d) Yes, for both current and recovering users.

Level Assessment d) Jane, who lives in Atlanta, should file with the city's fair housing agency. She should not file with HUD, because HUD enforces the federal Fair Housing Act, which does not protect on sexual orientation. The Georgia Fair Housing Commission is made up (brush up on the GCEO!). Some cities in Georgia, like Atlanta, protect on additional classes such as sexual orientation.

Jane, a gay woman, wants to file a claim against Rafael, an agent, for saying discriminatory remarks towards her about her sexual orientation. Evaluate her options. a) Jane should file with HUD. b) Jane cannot file anywhere, as sexual orientation is not a protected category under any federal, state, or local laws. c) Jane should file with the Georgia Fair Housing Commission. d) Jane, who lives in Atlanta, should file with the city's fair housing agency.

Level Assessment a) The landlord doesn't legally have to install the ramps because they are an "undue financial burden," but John can install them at his own expense. The landlord would not be legally required to pay for ramps as this is considered an "undue financial burden." The landlord would, however, have to allow John to install wheelchair ramps at his own expense.

John is moving into a privately owned apartment complex and asks the landlord to accommodate his wheelchair. John says he needs concrete ramps to be installed around the property. The landlord says he can't afford to install ramps, but is worried that he is discriminating. What is TRUE? a) The landlord doesn't legally have to install the ramps because they are an "undue financial burden," but John can install them at his own expense. b) The landlord has to install the ramps as it is a reasonable accommodation. c) The landlord doesn't have to install the ramps, but DOES have to offer John a more accessible apartment. d) In order to pay for the ramps, the landlord can charge additional monthly payments to John's rent.

Fair Housing Prohibitions: A Summary

Keep in mind that these prohibitions are only prohibitions if the agent (or whoever) discriminates BECAUSE of the protected category. If a landlord refuses to rent a property to a schizophrenic man because of his bad credit history, and NOT because of his mental illness, then that is acceptable. Here is a table with all the prohibitions at a glance. in file (FairHousingProhibitions)

You Haven't Heard the Last of Me

Later in the level, we are going to get more specific about some of Fair Housing Act's prohibitions, especially blockbusting, steering, redlining, and advertising. Plus, there's a whole chapter on its exemptions. Also, you'll learn a lot more about modification, accommodations, and accessibility when we get to disability law. So, if you're yearning to know more, be patient, my pet. It'll come.

Steering: A Case Study

Let's delve deeper into an example of steering. A Vietnamese family comes into agent Sid's office looking for a home. Sid knows of a good neighborhood with a substantial number of Vietnamese residents, one he thinks this particular family would enjoy. Sid only shows the family properties in this specific neighborhood. This, my friend, is considered steering because he is directing the family away from other, less racially segregated neighborhoods. In this case, Sid was working to perpetuate segregation. Perhaps Sid did not have any malicious intent here... I mean, he isn't trying to deprive the family of anything, nor does he hold any expressed negative beliefs about them. He may actually have thought he was being helpful. But it is still wrong for Sid to take this choice out of the family's hands. They should be allowed to choose for themselves among the various properties he has available, regardless of location.

HUD: Not the Only Option

Let's expand our lens beyond HUD as we finish this level. Depending on state and local laws, there may be other venues in addition to HUD where fair housing cases can be filed. In some cases, multiple venues may have jurisdiction over one case. In other words, a real estate license holder may be subject to more than one legal action for any one act of alleged discrimination. Both the federal government and state real regulatory bodies would have jurisdiction over these types of cases.

Blockbusting

Let's move on. Blockbusting is the illegal practice of causing owners to sell their homes by creating fear that members of a protected class are moving into the area. Blockbusting encourages the panicked 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. License holders are unlikely to engage in blockbusting accidentally and without malicious intent. However, intent is not required for their actions to be a violation of the Fair Housing Act. Panic Peddling: Blockbusting may also be referred to as panic peddling or panic selling. Those wishing to foster this panic selling often cite effects, such as a decline in the quality of education and an increased crime rate, even though there is no justification for making these claims. History of Blockbusting: But how did this kind of stuff even start, Ace? I'm glad you asked. Blockbusting came to be a few decades ago, as more and more Blacks began moving into predominantly white neighborhoods. Unethical real estate agents would then stoke racist fears in the white homeowners in those neighborhoods, and would also warn that the new Black neighbors would result in their homes losing value. So, the white people sold their homes, usually below market value, and moved farther out into the county. This was known as white flight. Then, those same unethical real estate agents would sell the white owner's home, usually to a Black buyer, and usually at an inflated price. Do you see how the unethical real estate agent profits? They get the white home for less, and then sell it to a Black buyer for more. Corrupt, racist, and all-around intolerable behavior. This is some pretty nefarious stuff, Yoni . Read on for some historic examples of what some real estate agents have done to induce fear in white homeowners. EXAMPLES: . Hire Black women to walk around white neighborhoods . Hire Black boys to throw blocks through windows in white neighborhoods . Aggressively call, send postcards, and otherwise solicit white homeowners to sell . Place "sold" signs on white homeowners' lawns to create the illusion that white homeowners are moving out en masse Sometimes these slimy agents are even sneakier. For instance, they might use terms like "changing neighborhood" and "undesirable elements" to white prospects, with no reference to race. Same effect, though.

Agent Dos

Let's start with you, the agent. When it comes to fair housing, what can you do to uphold fair housing laws to the best of your ability? Stick to Price Range: As an agent, you should always start with finding available homes within the client's price range. Make sure that you pick homes in all different areas and neighborhoods. Never try to guess or make decisions about where you think your buyer would want to live. Be Inclusive: A good rule of thumb is to always seek to be inclusive rather than exclusive in your promotion of properties. You don't want to be that agent who eliminates a group of people or limits the type of people who could take advantage of a property. For example, if an agent advertised a home as "perfect for a young couple," they have effectively stated that a family shouldn't have this home. Get Help with Exemptions: It is often difficult to determine whether a specific property or transaction is exempt under the Fair Housing Act, or whether it is exempt from state and local legislation addressing similar issues. Because these cases are complex, any time you find yourself wondering if a property or transaction might be exempt, it is very important to seek legal counsel.

Quiz Level 24 b) an emotional support animal. Because the dog helps Lily with her autism, but is not specially trained, he is an emotional support animal, not a service animal.

Lily's dog Omar is very comforting to her. He has received no special training, but just his presence makes her feel better, as Lily is autistic and can become overstimulated easily. What is Omar? a) a helper pet. b) an emotional support animal. c) an assistive service dog. d) a service dog.

Level Assessment b) Marcus pays. Tenants may be required by landlords to pay for modifications. Tenants may also be required to pay to return the property to its unmodified condition at the end of the lease.

Marcus needs the carpets removed from his apartment because of a newly diagnosed respiratory disease. Who pays for this removal? a) The landlord draws from a federal fund that he has access to for cases like this. b) Marcus pays. c) Marcus and the landlord split the cost. d) The landlord pays.

Facts of a feather d) national origin

Mexican. a) race b) disability c) religion d) national origin

National Origin

National origin means the country of birth or ancestry. During the screening process, landlords and property managers may ask for an applicant for citizenship or immigration status documentation. However, they can only do this for the purpose of determining lawful entry or work status in the United States. Hispanic Population: Census data shows that the Hispanic population is the fastest growing segment in the United States. Some municipal governments have been prosecuted for trying to reduce or limit the number of Hispanic families that may live in their communities. Lenders, too, have been sued for imposing stricter underwriting standards for Hispanic borrowers, or for making loans on less favorable terms for Hispanic borrowers.

Language Barriers

Neither the Fair Housing Act nor the ADA considers not being able to speak English a disability. On the other hand, non-English speakers have the right to understand what they are signing, and brokerages should make every possible effort to accommodate them. Some local real estate associations have a list of REALTORS® who speak various languages. Clients may be referred to a license holder who speaks their same language fluently.

Redlining

Now on to redlining. This is the illegal act of a lender refusing to issue mortgages in a specific area. Redlining got its name because there were some areas where lenders would actually draw a line around a certain area on a map and refuse to lend to people there. HMDA and CRA: Remember these acts from previously in the level? Both the Home Mortgage Disclosure Act (1975) and the Community Reinvestment Act (1977) were efforts to combat redlining. A Purrfect Example: Let's look at redlining in action. In the city of Catville, there are three neighborhoods: Calico, Tabby, and Ragdoll. The Bank of Woof provides loans to residents in Calico and Tabby. However, the bank is prejudiced against the Ragdoll neighborhood, and (illegally!) refuses to provide loans to the (perfectly qualified!) Ragdollians. Don't get me wrong, though, while cats are cute, redlining definitely isn't. HOLC, Grades, and Redlining History Here's a historical example of how redlining worked. An appraiser goes to Brooklyn in the 1930s to assess the neighborhood of Bedford-Stuvyesant. He describes obsolescent buildings, poor maintenance, and the working-class residents, and then states, "Colored infiltration is a definite adverse influence on neighborhood desirability." The government-sponsored Home Owners' Loan Corporation (HOLC) then draws a line around Bedford-Stuyvesant on a map. They color the area red and gave it a "D," which is the worst grade possible when it comes to credit risk. (For reference, green was "best," blue was for "still desirable," and yellow was for "definitely declining.") Loans for residents in this "D" area are either unavailable or else very expensive. HOLC maps like this get passed down through the lifetime of various banks. The maps become self-fulfilling prophesies, as these "hazardous" neighborhoods — "redlined" ones — are not invested in. This, in turn, feeds white flight and racial segregation. Later, housing programs like the VA and FHA use these neighborhood classifications to decide whom to give home loans. The process of redlining has had enduring consequences. Studies show that three out of four neighborhoods redlined on government maps back in the 1930s still struggle economically today.

Intention Doesn't Matter

Now that we've defined the protected classes, let's look at what the federal Fair Housing Act prohibits when it comes to how real estate workers should and should not interact with others. Note that it doesn't matter if someone intends to discriminate or not. It's the action, not the motivation, that matters.

The Takeaway

Now you know the process for a fair housing complaint. Important stuff in case you ever need to help a client file one, or, gulp, if you ever land in hot water yourself. In Chapter 8, you learned: ✅ To explain the role of the Department of Housing and Urban Development (HUD) in real estate and fair housing regulations. ✅ To explain the role of the Georgia Commission on Equal Opportunity (GCEO) in real estate and fair housing regulations. ✅ To demonstrate knowledge of the process of filing a fair housing complaint and describe consequences violators could encounter. In the next chapter (which is the last chapter of the level!), you'll learn (and review!) how to practice fair housing on a daily basis.

Level Assessment b) a current cocaine user. Current users of drugs are not covered under the ADA.

Of the following, who would be NOT be covered by the Americans with Disabilities Act? a) a recovering alcoholic. b) a current cocaine user. c) an older man in a wheelchair. d) a girl with cognitive impairment.

Testing, Testing

Often, real estate agents and brokerages may be tested to make sure they don't participate in any kind of discrimination. HUD has undercover testers who regularly visit offices to see how potential clients are treated. A tester is an individual who, without any bona fide intent to rent or purchase a home, apartment, or other dwelling, poses as a prospective buyer or renter for the purpose of gathering information. This information may indicate whether a housing provider is complying with fair housing laws. Who Can Test?: A tester can be anyone, regardless of whether they are a real estate professional. They may be representatives from government employees, members of fair housing organizations, and even friends or acquaintances of an alleged victim. Testing is a paid gig, and it involves training beforehand. EXAMPLE On Craigslist, an owner of several apartment complexes keeps posting ads that say, "Not suitable for children/pets." After seeing the ads, the local fair housing organization conducts testing. A single male tester with no kids looks at the apartment. He is told the unit will be available within the next few days. However, when a test family arrives (a man, a pregnant woman, and a young child), the owner won't even show them the unit, stating, "This won't work out for either of us." So, is the tester ever revealed? Do they ever throw off their disguise and yell, "A-ha, you fool! I have tricked thee!" Kinda. If there is an infraction, the broker is notified and a complete investigation begins. If there is no violation, the brokerage never knows that it has been tested.

Scenario: Text Messages Answer 1: The tenant would gather information to send to HUD. After she contacted HUD, HUD would investigate, and likely set up a conciliation process. If the conciliation failed, the next step would be either an administrative hearing or a civil suit. The court would likely find in favor of the tenant, as the property manager is clearly sexually harassing the tenant, and "sex" is a protected category under the Fair Housing Act.

Over a three-month period, a property manager sends several text messages to a tenant, demanding sexually provocative photographs and asking that she pose nude for him. He says that if she does, he will reduce or waive her rent. She refuses, and he evicts her. Question 1: The tenant decides to file a complaint. Describe the general process. Then, suggest the case's final outcome, explaining why.

Injunctions

Part of the immediate action could be issuing an injunction. An injunction is a court order that either stops an individual or entity from doing something, or tells them they need to start doing something, usually until the outcome of a judicial proceeding is decided. For instance, if a business wasn't accepting Black clients and then received an injunction, they'd be forced to start working with Black clients. However, this would not necessarily prevent them from being subject to further investigation and penalties. Temporary or Permanent: If HUD finds that discrimination took place, or is about to take place, the HUD Secretary can request that the Justice Department file a temporary or permanent injunction. A temporary injunction only lasts so long, but with a permanent injunction, it can last either indefinitely or for a set amount of time. This type of injunction is based on the decision of the court. While a landlord or seller is under a temporary injunction (also known as a preliminary injunction), they are unable to rent or sell their property until a final decision is made. They will have to wait to move forward on renting or selling their property until HUD investigates the case.

Physical or Mental Impairment

Physical or mental impairment can include: . Hearing impairments . Mobility impairments . Visual impairments . Chronic alcoholism . Chronic mental illness . AIDS . AIDS-related complex . Intellectual disabilities Current vs. Recovered Users: The definition of impairment does NOT include current users of illegal controlled substances, but DOES provide protections for individuals with drug or alcohol addiction. So, someone in recovery would be covered (i.e., a recovering drug addict, a sober alcoholic). Someone currently using would not be covered.

Level Assessment c) "Separate but equal" separation of the races was constitutional. Plessy v. Ferguson (1896) established that "separate but equal" separation of the races was constitutional.

Plessy v. Ferguson decided that: a) All racial discrimination in housing was unconstitutional. b) Racially based zoning was unconstitutional. c) "Separate but equal" separation of the races was constitutional. d) The enforcement of racially restrictive covenants was unconstitutional.

Quiz Level 24 c) The second woman may have been a tester. The second woman may have been a tester. Remember, disability is a protected class under both ADA and FHA.

Property manager Fred gives a quick tour of an apartment to a woman in a wheelchair. A few weeks later, Fred gives another tour, this time to an able-bodied woman of about the same age, race, and income bracket. He spends much more time with her. Soon, he's charged with discrimination. Evaluate. a) Fred can be prosecuted under the Americans with Disabilities Act, but not the Fair Housing Act. b) Fred's behavior is suspicious, but legally, he has done nothing wrong, as disability is not protected by the Fair Housing Act. c) The second woman may have been a tester. d) Fred will be found innocent of discrimination.

Title III: Public Accommodations and Commercial Facilities

Public accommodations include facilities like hotels, restaurants, retail merchants, doctor's offices, golf courses, private schools, day care centers, health clubs, sports stadiums, movie theaters, etc. Note that these are privately owned and operated facilities. If transportation is offered by a private company, it is covered by Title III. Privately funded transportation includes, but is not limited to, taxicabs, airport shuttles, intercity bus companies, such as Greyhound, and hotel-provided transportation. Reasonable Modifications: Reasonable modifications must be made to policies, practices, and procedures to avoid discrimination against people with disabilities in public areas. This means that physical barriers that interfere with the activities of people with disabilities must be removed. New and Existing Buildings: Title III also describes accessibility requirements for new and existing buildings, as mentioned.

Advertisement #4 Did Valentine's Day find you without a date this year? Don't let Cupid miss you again - move into the bustling community of young people at McGibbens Apartment Complex. Everyone is ready to mingle, just like you are! We have weekly movie nights, monthly happy hours, two beautiful pools, and much more. The building is non-smoking and has elevators. Answer 1: For best results, you might consider tweaking. First, it's okay to refer to Valentine's Day in an ad. Second, age is not a protected category, so it's acceptable to gear the ad towards young people. However, do you really want to skew it that way, and avoid missing out on possible applicants? Also, with the focus on young singles, the ad hints that it would prefer people without kids. Family status IS protected, so the ad is walking a very fine line. Best not to walk that tightrope. Finally, advertising happy hours, movie outings, pools, and building features is all great, as it focuses on property, not people.

Question 1: Evaluate the ad. What, if anything, is wrong with it? For reference: "Did Valentine's Day find you without a date this year? Don't let Cupid miss you again - move into the bustling community of young people at McGibbens Apartment Complex. Everyone is ready to mingle, just like you are! We have weekly movie nights, monthly happy hours, two beautiful pools, and much more. Non-smoking, elevator buildings."

Advertisement #5 Many 1br/1b units available in this senior citizen community. Assisted living. Group activities and outings. Meals provided. Transportation available. No children allowed. Answer 1: The ad is fine as is. Remember, ads for senior citizen housing can advertise that no children are allowed.

Question 1: Evaluate the ad. What, if anything, is wrong with it? For reference: "Many 1br/1b units available in this senior citizen community. Assisted living. Group activities and outings. Meals provided. Transportation available. No children allowed."

Answer 1: The property manager should train their maintenance workers in fair housing practices. Also, the property manager should create a fair, nondiscriminatory system for the order of maintenance requests that workers are required to follow. If maintenance workers continue to discriminate, they should be aware that they will face penalties.

Question 1: How can the property manager prevent this kind of discrimination from happening again?

Advertisement #3 in file (AdWithNoDiversity_Core) Answer 1: The ad shows only white people. Images in ads should show diverse populations.

Question 1: What, if anything, is wrong with this ad? Evaluate.

Answer 1: This is a beautiful three-floor walk-up in an exclusive neighborhood with several playgrounds next to a beautiful Protestant church. It is in a very safe area with a security guard present 24/7 and is also a gated community.

Question 1: Rewrite the ad: "This three-floor walk-up is in an exclusive neighborhood just right for you and your family. Close to a beautiful Protestant church and several playgrounds. Enjoy our gated community (a security guard is present 24/7), and take a deep breath, knowing you're safe here."

Fitting In: Discussion Answer: This agent is definitely on thin ice. When he says, "I know what you mean" when the seller says he only wants buyers who "fit in" to the neighborhood, he's going along with the seller's questionable preferences. Of course, the seller doesn't explicitly say that he only wants other rich white people for potential buyers. It's all in a very gray area. The agent should tell his broker about the conversation. He should also document any other conversations or incidents which make it seem like his client might be expressing discriminatory preferences.

Question: Did the agent commit a violation?

No Discrimination in Advertising

Remember when we talked about the exemptions to the Fair Housing Act? Even if these exempt individuals can choose to exclude certain tenants, they can never advertise those preferences. Let's take ol' Mrs. Murphy, from the Mrs. Murphy exemption. If she's renting out a room in her Victorian mansion, she can't advertise that she won't accept certain people as tenants. However, in practice, she can turn down whomever she wants. In conclusion: Discriminatory advertising may not be used, even when the exemption itself is legal.

Major Life Activities

Remember, a physical or mental impairment must substantially limit one or more major life activities in order to be considered a disability. Major life activities include, but are not limited to: . Caring for oneself . Performing manual tasks . Seeing Hearing . Eating . Sleeping . Walking . Standing . Lifting . Bending . Speaking . Breathing . Learning . Reading . Concentrating . Thinking . Communicating . Working

Level Assessment d) The broker should reprimand Sera for discrimination. It doesn't matter if Sera meant it as a compliment. The broker should reprimand Sera for discrimination. It doesn't matter if Sera meant it as a compliment. The broker might also require Sera to get some more education about fair housing.

Sera is an agent. She is helping a Muslim couple find a house. Sera keeps patting the woman's hijab and calling it "so cute!" The woman is not impressed, and upon return from the property tour, asks to speak to the managing broker. What should the broker do? a) The broker should have Sera apologize, but should also tell the Muslim woman that this was not actually a discriminatory act, since Sera meant well. b) The broker should stand up for Sera, and tell the Muslim woman that Sera meant it as a compliment. c) The broker should reprimand Sera for discrimination, and reassign the couple to a Muslim agent. d) The broker should reprimand Sera for discrimination. It doesn't matter if Sera meant it as a compliment.

Level Assessment b) use price range. Seth should use the client's price range to help them find a home. The rest of the answer choices are fair housing violations.

Seth is an agent. When helping a client find a home, what should he do? a) use steering. b) use price range. c) use blockbusting. d) use redlining.

Discriminatory Sellers

So far in this chapter, we've examined the do's and don'ts for agents, brokers, and property managers. How about the client? Discriminatory Sellers: Before entering into a listing agreement, an agent should explain that they will be complying with fair housing laws through every step of the process. They should obtain the customer's acknowledgment and agreement. The agent should make it very clear that they will: . Reject the use of terms indicating race, religion, color, disability, or any of the other protected categories to describe prospective buyers . Terminate the listing if the seller uses any of the protected categories in the consideration of an offer . Tell the broker if the seller tries to discriminate Let's explore the icky terrain of discriminatory sellers. Example: Fran, a seller, has done some internet stalking on her two potential buyers. As she and Listing Agent Al discuss, Fran says, "I'm leaning towards the Smith family. I know I shouldn't say this, but I really want another Black family to move in after we move out." How should Al respond? Al should say that it alarms him that Fran is using race as a factor when considering a buyer for her house, as this is illegal. He should also tell her that if she wishes that he keep representing her, they cannot be having this discussion. Finally, Al should inform his broker about the incident. Keep in mind that in some cases, the buyer or seller may simply not be educated in fair housing practices. Educate the client, but if they still insist on crossing boundaries, it's time to leave the relationship. Warning Signs: Some clues that the seller is discriminating include: . Refusing to accept a full-price offer from a party who belongs to a protected class. . Removing the property from the market to sidestep a potential purchase by a party who belongs to a protected class. . Accepting an offer from one party that is lower than one from another party, with the higher offer coming from a party who belongs to a protected class.

Georgia Commission on Equal Opportunity (GCEO) 🍑

So far, the avenues additional or adjacent to HUD that we've been discussing have all been national. Let's now turn to the state level and talk about Georgia. You may remember I mentioned the GCEO earlier. It has two divisions: . the Equal Employment Division . the Fair Housing Division, which enforces the Georgia Fair Housing Act. Mission: The mission of the Fair Housing Division is to: . Promote broader housing choices in Georgia. . Promote understanding of the Georgia Fair Housing Act and the federal Fair Housing Act. . Encourage integrated communities and/or neighborhood. . To secure compliance with state and federal fair housing laws . Eliminate discrimination in housing because of race, color, religion, national origin, gender, disability, and familial status. . Punish those who violate state or federal fair housing laws. Timeline: A complainant has one year from the time of the alleged violation to file with the GCEO. That's the same timeline as HUD! Relationship with HUD: A complainant can file a complaint with the GCEO and/or with HUD. HUD may delegate some cases to the GCEO. Likewise, the GCEO may decide HUD should take jurisdiction. Process: The Georgia Fair Housing Act requires all complaints must be filed in writing, signed, and affirmed by the aggrieved person. Procedures include: . Interviewing the potential charging party . Determining jurisdictions . Drafting the complaint form(s) . Serving notices to the parties . Perfecting the complaint (in other words, complaints can be amended by the complainant or the agency's staff. However, all amendments are subject to the complainant's approval.) . Intake (a critical step in the process, this is the beginning of the investigation where the groundwork is laid for effective resolution of complaints) The GCEO staff members act as neutral parties throughout the complaint process. Sanctions: If the GCEO discovers that a license holder violated the license law or commission rules and regulations, they'll initiate the process to sanction or issue a citation, which could include: . Damages . Injunctive or equitable relief . Required education . Civil penaltiesA maximum of $10,000 for a first offense. . A maximum of $25,000 for a second violation within five years. . A maximum of $50,000 if two or more violations occur within seven years.

Not Even at the Client's Request

So far, we've been talking about license holders steering clients. It can also happen that clients want to be steered. A real estate license holder should not let a client's membership in a protected class influence the properties they show that client - not even if the client specifically asks that they do so. EXAMPLE: A prospective buyer expresses a wish to live in a Latino community. The real estate professional should tell the client that they are not allowed to take such factors into consideration, and respond by showing the client a range of listings meeting the client's other, property-related specifications. The client is free to choose a community with predominately Latino residents if they so desire, but the real estate license holder can play no role in helping the client to identify or acquire segregated housing. Steer Me? Just a Little?: A client's request for steering can happen in more subtle ways, too. Maybe they don't bluntly ask you to show them only houses in a white neighborhood. Instead, they ask questions about, say, crime rate. Here's how to answer some of those trickier questions. Safety: If a buyer is concerned with safety, do not tell them that certain areas are safer than others. Direct them to the police department or other sources and let them decide for themselves if the neighborhood is a good fit. School Districts: If the buyer is concerned with school districts, redirect them to the district's website or national rankings. Do not give the buyer your own opinion on education in the area.

Practice Makes Perfect

So how common is housing discrimination? According to a 2017 report from the National Fair Housing Alliance, "Fair Housing Trends Report: The Case for Fair Housing," more than four million instances of housing discrimination occur every year. 😞 We've got a long way to go, Yoni , but now that you have a clearer idea about equal opportunity housing, you can be part of the solution. 👍 Towards that end, I'll wrap up the level with a few scenarios for you to work your way through. Each is based on a real court case! Pay close attention to each scenario, as an open-ended question will follow each.

Neutral Alternatives

So what would an Aceable Agent do? The Aceable Agent (that's you!) finds neutral alternatives for these terms. Doing so will not only open you up to all kinds of clients, it shows you're ready and willing to learn how to do business better. And that's just cool. 😎 So what kind of words CAN be used in advertisements? . "Great view" . "Fourth floor walk up" . "Walk-in closets" . "Jogging trails" . "Bus stop" . "Non-smoking" . "Two-bedroom" . "Bicycles allowed" . "Wheelchair ramp" These types of words in ads are acceptable. Use 'em! Describe the Property, Not the People: That's your fair housing advertising motto, Yoni . The best ads will use street names and other non-biased geographical information, rather than describing the type of people who might or might not live there.

HUD Complaint Process: Steps 1-3

So, how does filing a fair housing complaint work? Step 1: The client gathers information.: Information includes: . Their name and address . The name and address of the person their complaint is against (the respondent) . The address or other identification of the housing involved . A short description of the alleged violation (the event that caused them to believe their rights were violated) . The date(s) of the alleged violation Step 2: The client contacts HUD.: . They'll need to send the Housing Discrimination Complaint Form or a letter to the HUD office nearest them. . They may also call that office directly. For people with disabilities, HUD provides interpreters, Braille materials, assistance in reading and completing forms, and a toll-free TTY phone for people with hearing impairment (1-800-927-9275). Step 3: HUD notifies everyone involved.: HUD will notify complainants when they've received their complaint. They will also: . Notify the alleged violator of the complaint and permit that person to submit an answer. . Investigate the complaint and determine whether there is reasonable cause to believe the Fair Housing Act has been violated. . Notify the complainant if it cannot complete an investigation within 100 days of receiving their complaint.

The Four Exemptions

So, one more time with feeling, these are the four exemptions to the Fair Housing Act: 1. Single-family residences sold or rented by owner if the owner does not own more than three single family residences at one time. In cases where the owner is not the most recent resident of the property being sold, that owner is only granted one exempt sale in any 24-month period. 2. Rental of rooms or units in owner-occupied property in a one-to-four family dwelling, if the owner resides in one of the units. 3. Dwellings belonging to religious organizations or private clubs. 4. Housing for older persons (housing for 62+, 80% of units have a resident 55+, or housing is state or federally operated). Always Remember: . For the real estate license holder, there are no exemptions. . Under the Civil Acts Right of 1866, one can never discriminate on the basis of race.

Equal Housing Opportunity Logo

So, that's a thorough rundown on the kinds of words that can and can't be used in ads. Besides the actual content of the ads, there are some other regulations concerning fair housing. All ads must present themselves as promoting equal housing opportunity through the use of a logo (also known as "logotype"), slogan, or statement. The choice of logo, statement, or slogan will depend on the type of media used (visual or auditory) and, in space advertising, on the size of the advertisement. Logo: Here is what the Equal Housing Opportunity logo looks like: In all space advertising (that is, advertising in regularly printed media such as newspapers or magazines), the following logo standards should be used: in file (EHO_LogoStandards) In any other advertisements, if other logotypes are used in the advertisement, then the Equal Housing Opportunity logo should be of a size at least equal to the largest of the other logotypes. If no other logotypes are used, then the type should be bold display face which is clearly visible.

Filing a Complaint: Summary

So, that's how a complaint travels through HUD. Here's an image to help you remember. in file (FilingAFairHousingComplaint)

Warning Signs

So, that's that when it comes to your own behavior. What about when you suspect someone else might be taking advantage of your client, like a lender? Let's talk about warning signs that you can watch out for: . Your client is treated differently in person vs. on the phone. . Your client is discouraged from even applying for credit. . You or your client hear the lender make negative comments about any protected group. . Your client is refused credit, even though they qualify, or they are offered a higher rate, though they qualify for a lower one. . Your client is flat-out denied credit with no reason behind it. . Your client has a deal that sounds too good to be true. . Your client is feeling pressured to sign for credit they don't feel comfortable signing. If your client experiences any of these red flags, it may be time to refer your client to HUD or to a local fair housing agency.

Complaints

So, that's your brief rundown on some of HUD's fair housing programs and offices. Let's circle back to the FHEO. Remember, the FHEO enforces the Fair Housing Act. It's time to get into the who, what, where, when, and why of the complaint process. As you know by now, any person who believes that they have been injured by the discriminatory practices of a real estate license holder, or who believes that they are being or will be injured, may file a complaint with HUD. (Technically, the FHEO, but since FHEO is part of HUD, I'll use the terms interchangeably.) HUD can also investigate if no complaint has been filed. Number and Type of Complaints: Unfortunately, fair housing complaints aren't uncommon. In 2017 alone, HUD received 8,186 fair housing-related complaints. The two most common types of fair housing complaints were for disability and race. Timeline for Complaints: HUD requires that the complaint be filed within one year of the alleged violation. A person can file a private civil lawsuit, instead of OR in addition to the HUD complaint. They have two years from the alleged violation if they file a private lawsuit.

Complaints Requiring Immediate Action

Sometimes, when discriminatory action requires an immediate solution, HUD will attempt to establish a temporary solution to the complaint, while it works on completing a full investigation. HUD may also ask the Attorney General to handle the suit in court to obtain temporary or preliminary relief. A fair housing complaint that requires immediate action meets the following conditions: . Irreparable harm will more than likely result without immediate action. . Substantial, compelling evidence exists that indicates a violation of the fair housing laws. Given the potential for serious harm and clear indication of illegal activity, you can see why these cases would merit immediate action. EXAMPLE: A tenant is scheduled to move out of her current apartment and into a new apartment. She has submitted her application paperwork electronically and has not yet met the landlord in person, although she has been approved for the apartment. One day she stops by the apartment building with a friend and meets the landlord of the building. The landlord decides that this new tenant looks to be of Middle Eastern descent and feels that he would prefer that there were no Middle Eastern individuals in his building. He revokes the tenant's lease contract. The tenant's old lease is up, and she must vacate her previous apartment. If the landlord does not let her move in, then the tenant may not have a residence. In this situation, quick action is necessary. Consequently, HUD might pass the case on to the Attorney General for immediate attention while it files a complete investigatory report.

Disparate Impact

Steering the buyer can make the license holder guilty of disparate impact. Disparate impact is the idea that a practice or system can be discriminatory if it is found to disproportionately affect members of a protected class, even if the policy itself is not rooted in intentional discrimination. In the News: In 2015, the Supreme Court ruled that the Texas Department of Housing and Community Affairs had contributed to "segregated housing patterns by allocating too many tax credits to housing in predominantly black inner-city areas and too few in predominantly white suburban neighborhoods." The ruling endorsed the use of disparate impact in housing cases. In other words, statistics and other evidence can be used to show decisions and practices have discriminatory effects — without also showing that they're the result of discriminatory intent. The Agent and Disparate Impact: Can you see how this could work on an individual level? Say a Black agent always steers Black clients to historically Black neighborhoods. He does not mean to discriminate, but his actions result in segregation. He could be found guilty of disparate impact.

HUD Complaint Process: Step 5

Step 5: Administrative Hearing or Civil Action: If the complaint cannot be resolved through conciliation, two things can happen: 1. HUD files a charge and the case is referred to an administrative law judge, or 2. Either party can elect to have the case tried in a civil court. Option 1: Administrative Hearing: If the case goes all the way to an administrative hearing, HUD attorneys will litigate the case for the complainant at no charge. (Although the complainant can decide to be represented by their own attorney if they want to.) Then, an Administrative Law Judge, or ALJ, will consider evidence from both the complainant and the respondent. Consequences: If the Administrative Law Judge decides that discrimination did occur, the respondent can be ordered to: . Compensate the complainant for actual damages, including humiliation, pain, and suffering. . Provide injunctive or other equitable relief, for example, to make the housing available to the complainant. . Pay reasonable attorney's fees and costs. . Pay the federal government a civil penalty to vindicate the public interest. These numbers keep being adjusted for inflation, but as of 2018, the maximum amounts for penalties are: $20,000 for a first offense$50,000 for a second violation within five years$100,000 if two or more violations occur within seven years. Option 2: Civil Action: Both the complainant and the individual charged with the violation have the right to resolve the matter by a civil action, rather than an administrative proceeding. If the person being charged elects to have the matter resolved by a civil action, then HUD will request that a lawsuit be filed by the Attorney General. The court in such a civil action has the authority to assess sizable financial penalties, which can also include reparations and relief, court costs, and attorney's fees. As mentioned, the complainant has two years to file a civil suit directly with the federal court. Other Opportunities for Civil Action: A complainant can also file a civil suit after conciliation. For example, if a conciliation process leads HUD to conclude that dismissal is the best way to handle a case, but the complainant still feels that discrimination occurred, then the complainant may take the issue to the civil courts. Burden of Proof: In any civil action, the burden of proof is on the person making the complaint. In order to have a legal basis for a case, a complainant must show that: . They are a member of a protected class. . They applied for and were qualified to rent or purchase the property but were rejected. . The property remained available after the rejection - i.e., the property was rented or sold to someone else after it was denied to the qualified person making the complaint.

Discriminatory Buyers

Still, most discriminatory comments actually come from buyers, not sellers. If you're in a situation where a client asks a question like, "What is the racial makeup of this neighborhood?" your response should be to tell them that you don't know. Don't feel pressured to answer every question a client throws at you. You don't always have to come up with an answer, because this can get you into big trouble. Standard Responses: Many brokers will have a prepared response for their sales agents to recite in these kinds of situations, such as: "It is the policy of our company not to answer questions of that nature. If you are concerned, you are free to do some research on your own." By responding in this way, the agent has clearly let the clients know that there are some topics that will not be discussed by the agent. Again, if the client does not understand or insists on the issue, it's time for the license holder to remove themselves from the relationship. The agent should make notes on the situation and inform the broker as to what transpired.

The Takeaway

That's it for exemptions to the Fair Housing Act! Now you'll know just what to do if, say, you're working with a Mrs. Murphy type. In Chapter 4, you learned: ✅ To explain exemptions under the Fair Housing Act, illustrating knowledge of the parameters and ramifications. Shall we move on to federal disability law? I think we shall.

Affected Businesses

The ADA affects a wide array of businesses and establishments. Here are the kinds of businesses and establishments affected by the ADA: . 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

Commercial Accessibility

The ADA requires that commercial and public buildings that are newly constructed (built after 1993) be accessible. This goes for alterations to buildings, too. For example, if a parking garage was added to an existing building, that garage would need to be accessible. Removal of Barriers: The ADA ALSO requires the removal of barriers to accessibility in older buildings (that is, those built before the passage of the ADA). The only exception is if removing a barrier "is not readily achievable" (i.e., if it's too expensive or would be too much of a hardship). If the barrier cannot be removed, then the building needs to look into other avenues of relief (alternatives, training, monetary relief, etc.). 2010 ADA Standards for Accessible Design: The 2010 ADA Standards for Accessible Design set minimum requirements for newly designed and constructed or altered commercial and public buildings. Adoption of the 2010 Standards also established clearer guidelines on accessibility requirements and barrier removal for existing facilities.

Level Assessment c) No, it does not apply, because the daughter is 18 years old. 18 candles = Bye-bye familial status protections! It doesn't matter if the daughter is still in school.

The Castillos have an 18-year-old daughter who lives at home with them. She is a senior in high school. Does the "family status" protection of the Fair Housing Act apply to the Castillos? a) Yes, it does apply, because the daughter is still financially dependent on her parents. b) No, it does not apply, because the daughter has a part-time job. c) No, it does not apply, because the daughter is 18 years old. d) Yes, it does apply, because the daughter is enrolled in school.

Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau (CFPB) was created in 2010 as part of the Dodd-Frank Act. This Act also made the CFPB the new enforcer of RESPA. Among other things, the CFPB works to uphold fair and non-discriminatory practices and fights discrimination practices in lending. Their work includes: . Rooting out unfair, deceptive, or abusive acts or practices by writing rules, supervising companies, and enforcing the law. . Enforcing laws that outlaw discrimination in consumer finance. . Taking consumer complaints. . Enhancing financial education. . Researching the consumer experience of using financial products. . Monitoring financial markets for new risks to consumers.

Level Assessment c) residential transactions only. The Fair Housing Act covers residential transactions only.

The Fair Housing Act covers: a) commercial transactions only. b) residential and commercial transactions. c) residential transactions only. d) residential, commercial, and government transactions.

Modifications

The Fair Housing Act requires that landlords, property managers, and other housing operators make modifications to a property per a disabled tenant's request, as long as it does not impose an undue financial burden on the owner. Structural Alteration and Environmental Controls: A modification will likely be a structural alteration to the property, like installing a wheelchair ramp or widening doorways. It can also refer to environmental controls, like lowered light switches or grab bars for bathtubs. Who Does What?: Landlords must allow reasonable modifications so that people with disabilities can enjoy their properties. Tenants may be required by landlords to pay for modifications. Tenants may also be required to pay to return the property to its unmodified condition at the end of the lease. In some cases, the landlord may ask that the modification (like a wheelchair ramp) be left on the property so that future tenants may have use of it. Undue Financial Burden: Let's go back to this for a minute. What's an example of a modification that would pose an undue financial burden on a landlord? Say that Darius uses a wheelchair. He wants to move into an older building that doesn't have an elevator. He asks the landlord to install an elevator before he moves in. An elevator would be really expensive, Yoni . For most landlords, that would be an unreasonable financial burden.

Fair Housing Assistance Program (FHAP)

The Fair Housing Assistance Program (FHAP) is funding provided by HUD to state and local agencies that enforce fair housing laws that HUD has determined to be substantially equivalent to the federal Fair Housing Act. (These agencies investigate and enforce complaints of housing discrimination that arise within their jurisdiction.)

Fair Housing Initiatives Program (FHIP)

The Fair Housing Initiatives Program (FHIP) provides funding for fair housing organizations and other nonprofits that assist people who believe they have been victims of housing discrimination. These organizations then partner with HUD to help people figure out which government agency should handle their complaints of housing discrimination. FHIP also conducts preliminary investigations of such discrimination claims, where they send both minority and white "testers" to properties suspected of practicing housing discrimination to see if housing providers treat equally qualified people differently. FHIP can be broken down into four main initiatives: 1. The Fair Housing Organizations Initiative (FHOI), which provides funds to strengthen the capacity and effectiveness of nonprofit fair housing organizations. 2. The Private Enforcement Initiative (PEI), which provides funds for the testing, preventative, and enforcement activities conducted by nonprofit fair housing organizations that work to eliminate discriminatory housing practices. 3. The Education and Outreach Initiative (EOI), which provides support and funding for state and local government and nonprofit initiatives that help the general public and housing providers understand what equal opportunity in housing means and what housing providers need to do to comply with the Fair Housing Act. 4. The Administrative Enforcement Initiative (AEI), which helps support state and local governments who enforce and create laws that include rights and remedies similar to those in the Fair Housing Act.

Level Assessment d) race, color, religion, sex, disability, familial status, and national origin. The Georgia Fair Housing Act closely mirrors the federal Fair Housing Act. That means that they have the same protected classes (race, color, religion, sex, disability, familial status, and national origin).

The Georgia Fair Housing Act protects which classes? a) race, color, religion, sex, disability, familial status, national origin, and veteran status. b) race, color, religion, sex, disability, familial status, national origin, sexual orientation, and gender identity. c) race, color, religion, sex, family status, and national origin. d) race, color, religion, sex, disability, familial status, and national origin.

The Department of Justice

The U.S. Attorney General (head of the Justice Department) may initiate a civil suit in any federal district court if they believe that a person has engaged in a pattern or practice of housing discrimination. The courts have found a "pattern or practice" when the evidence establishes that the discriminatory actions were the defendant's regular practice, rather than an isolated instance. The Attorney General may also bring suit under the ECOA where a creditor has engaged in a "pattern or practice" of discrimination in credit transactions. The Attorney General can also file suit if they believe a person has engaged in discrimination against a group of persons that raises an issue of general public importance. Often, the lawsuits allege that a defendant has done both. Penalties: In these cases, the penalty is up to $50,000 for the first violation and up to $100,000 for any subsequent violation. ADA: In addition, the Department of Justice enforces parts of the ADA. Specifically, it enforces ADA regulations governing state and local government services (Title II) and public accommodations (Title III). The Department of Justice may file lawsuits in federal court to enforce these aspects of the ADA, and courts may order compensatory damages and back pay to remedy discrimination if the Department prevails. The Department of Justice may also obtain civil penalties of up to $55,000 for the first ADA violation and $110,000 for any subsequent ADA violation. Complaints Process: The filing process with the Department of Justice regarding ADA complaints is pretty similar to the filing process with HUD for Fair Housing Act complaints. You know the drill by now: contact the department, provide relevant information, go through possible mediation, and, as a last step, go to court. Here, too, a complainant can file a civil lawsuit, instead. Other ADA Enforcers: In case you're curious: . The U.S Equal Employment Opportunity Commission (EEOC) enforces Title I (employment). . The Federal Communications Commission (FCC) enforces Title IV (telecommunication services).

Definition of Disability

The definition of disability under the Americans with Disabilities Act is the same as the definition under the federal Fair Housing Act. These Acts state that a person with a disability is any person who: . Has a physical or mental impairment that substantially limits one or more major life activities, or . Has a record of such impairment, or . Is regarded as having such an impairment. Note: While some state and federal documents still use the term "handicap," "disability" has become the more acceptable term. Let's go through the various aspects of this definition.

Level Assessment d) complainant contacts HUD, HUD investigates, conciliation, administrative hearing or civil suit. The general process for a fair housing complaint is: complainant contacts HUD, HUD investigates, conciliation, administrative hearing or civil suit.

The general process for a fair housing complaint is: a) complainant contacts HUD, HUD investigates, administrative hearing. b) complainant contacts HUD, HUD investigates, administrative hearing or civil suit. c) complainant contacts HUD, HUD investigates, conciliation, administrative hearing or civil suit or criminal case. d) complainant contacts HUD, HUD investigates, conciliation, administrative hearing or civil suit.

Fair Housing Accessibility Guidelines

There's some other important things that HUD does, too, when it comes to fair housing. HUD recognized the need for clear and measurable standards to determine compliance with federal disability law. Consequently, it adopted the Fair Housing Accessibility Guidelines in 1991. These guidelines provide technical directions for satisfying specific accessibility requirements. Not Mandatory: Compliance with HUD's Fair Housing Accessibility Guidelines is not mandatory. It is, however, a way to help ensure the equitable treatment of all potential clients and customers. Compliance can also provide evidence of non-discrimination in the event of a lawsuit. Don't confuse HUD's Fair Housing Accessibility Guidelines with the ADA's 2010 Standards for Accessible Design, which are mandatory. Guidelines: The Accessibility Guidelines only apply to covered multi-family dwellings. The guidelines ask landlords to ensure that: . Public use and common use portions of the dwellings are readily accessible to and usable by persons with disabilities. . All doors within such dwellings that are designed to allow passage into and within the premises are sufficiently wide to allow passage by persons in wheelchairs. . All premises within such dwellings include the following features of adaptive design: . An accessible route into and through the dwelling. . Light switches, electrical outlets, thermostats, and other environmental controls in accessible locations . Reinforcements in bathroom walls to allow later installation of grab bars. . Usable kitchens and bathrooms that can be navigated by an individual in a wheelchair.

Title V: Miscellaneous

This section contains a variety of provisions relating to the ADA as a whole, including its relationship to other laws, state immunity, its impact on insurance providers and benefits, prohibition against retaliation and coercion, illegal use of drugs, and attorney's fees. In addition, it provides a list of certain conditions that are not considered disabilities.

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Title II: Public Entities and Public Transportation

This title forbids discrimination against people with disabilities when it comes to "public entities." State and Local Governments: Public entities means a couple of things. For one, it means all programs and services covered by state and local governments. Public Transportation: Public entities also means public transportation. Publicly funded transportation includes, but is not limited to, bus and passenger train (rail) service. Rail service includes subways (rapid rail), light rail, commuter rail, and Amtrak.

Level Assessment a) the Fair Housing Act. Title VIII of the Civil Rights Act of 1968 is also known as the Fair Housing Act.

Title VIII of the Civil Rights Act of 1968 is also known as: a) the Fair Housing Act. b) the Americans with Disabilities Act. c) the Equal Credit Opportunity Act. d) Executive Order 11063.

Level Assessment b) advertise property for sale only to couples without children. Advertising property for sale only to couples without children is a violation of the Fair Housing Act (the exemption is for housing for senior citizens). Race, color, national origin, gender, familial status, religion, and disability are all protected classes under the federal Fair Housing Act.

Under federal fair housing law, it is illegal to: a) refuse to represent a client who has expressed racist beliefs. b) advertise property for sale only to couples without children. c) create a homeownership awareness program for low income earners. d) advertise a community that only allows residents over the age of 55.

Level Assessment d) physical or mental impairment that greatly limits 1+ major life activity, a record of such impairment, or is regarded as having such an impairment. A person with a disability is any person who has a physical or mental impairment that substantially limits one or more major life activities, or has a record of such impairment, or is regarded as having such an impairment.

Under federal law, a person with a disability is any person who has a: a) physical or mental impairment that greatly limits 1+ more major life activity, or a record of such impairment. b) physical or mental impairment that greatly limits 1+ major life activity, or is regarded as having such an impairment. c) physical or mental impairment that greatly limits 1+ major life activity, a record of such impairment, or the potential to develop such an impairment. d) physical or mental impairment that greatly limits 1+ major life activity, a record of such impairment, or is regarded as having such an impairment.

Level Assessment b) the rental of a unit in senior citizen housing to a family with small children. Housing for older persons is exempt from the familial status requirements of the Fair Housing Act if certain conditions apply. The property manager should approve the modifications and accommodations listed in the other answer choices.

Under the Fair Housing Act, the property manager of an apartment complex does NOT have to approve: a) the installation of a wheelchair ramp for a person with disabilities. b) the rental of a unit in senior citizen housing to a family with small children. c) the rental of a unit on the top floor to a person who walks with a cane. d) the use of a service animal for a person with disabilities, when there is normally a no-pet policy.

Level Assessment d) the federal Fair Housing Act and the Georgia Fair Housing Act. The Georgia Fair Housing Act closely mirrors the federal Fair Housing Act. Steering is illegal under both.

Under what law is it illegal for an agent to steer? a) It is always legal to steer. b) the federal Fair Housing Act only. c) the Georgia Fair Housing Act only. d) the federal Fair Housing Act and the Georgia Fair Housing Act.

Fair Housing Act vs. ADA

We're winding down, Yoni ! You're almost done with the chapter. Before we end, I'll take a moment and articulate major differences between the Fair Housing Act and ADA. . The Fair Housing Act covers multiple protected classes, including disability. The ADA covers only disability. . The Fair Housing Act applies to residential dwellings. The ADA applies to employment, public accommodations and commercial facilities, public transportation, and telecommunications. . The Fair Housing Act includes both service animals and emotional support animals as reasonable accommodations. The ADA only includes service animals.

Property Managers

We've covered agents and brokers. What should property managers pay special attention to? Respect ESL Speakers: HUD has ruled that it would be improper for a property manager or landlord to restrict access to rental units because an individual does not speak English or if it is their second language. The criteria for a non-English speaker is the same as the criteria for anyone else. Be Transparent: The criteria that a property manager would use to decide who will or will not become a tenant not only has to be exact, it also has to be available for others to view. If anyone is turned down for a lease and they ask for the criteria, it must be given to them. Some of the most common causes of denial are: insufficient income, poor credit screening, and criminal history. (Remember that while it's legal to use criminal history when denying an application, HUD has cautioned property managers not to use criminal history in a discriminatory fashion.) So if Property Manager Patti turns down Applicant Alex for an apartment, Alex has every right to know why. Don't Steer!: Property managers should be especially careful when it comes to steering. EXAMPLE: Ed, an apartment manager, decides not to show a single mother with rambunctious boys a second floor unit because, as he claims, he fears that "the boys might fall off the balcony." Although the manager had the customer's best interests at heart, he was steering the family away from a unit that was open and available.

Level Assessment c) provide auxiliary aids and services at the brokerage's expense, like interpreters, note-takers, assistive listening devices, or materials in Braille. Brokers should provide auxiliary aids and services at their own expense. Remember, ADA covers disability, not race; it covers residential buildings, not commercial; and private clubs and religious organizations are exempt under ADA.

What can brokers do to comply with the ADA? a) make sure that all residential dwellings in their transactions are up to ADA's standards. b) send testers to private organizations and religious clubs to whom they've rented or sold to ensure ADA compliance. c) provide auxiliary aids and services at the brokerage's expense, like interpreters, note-takers, assistive listening devices, or materials in Braille. d) seek out agents who represent a diversity of racial and ethnic backgrounds.

Level Assessment d) It amended the Fair Housing Act to add "disability" and "family status" to the protected classes. The Fair Housing Act amended the Fair Housing Act to add "disability" and "family status" to the protected classes.

What did the Fair Housing Amendment Act of 1988 accomplish? a) It amended the Fair Housing Act to add "sexual orientation" to the protected classes. b) It amended the Fair Housing Act to add "marital status" and "age" to the protected classes. c) It amended the Fair Housing Act to add "military status" to the protected classes. d) It amended the Fair Housing Act to add "disability" and "family status" to the protected classes.

Level Assessment b) employment. Title I of the ADA covers employment.

What does Title I of the ADA cover? a) telecommunications. b) employment. c) public entities and public transportation. d) public accommodations and commercial facilities.

Level Assessment b) disclosing loan information about a protected class as required by the HMDA. Disclosing loan information about a protected class as required by the HMDA is not a violation. The rest of the answer choices are violations.

What is NOT a violation of the federal Fair Housing Act? a) discriminating in brokering or appraising based on a protected class. b) disclosing loan information about a protected class as required by the HMDA. c) misrepresenting sales terms based on a protected class. d) denying or restricting access to an MLS based on a protected class.

Level Assessment a) Fair Housing Act of 1968. A federal law that prohibits discrimination in housing based upon race, color, religion, or national origin and was amended to include sex, disability, and familial status is the Fair Housing Act of 1968.

What is a federal law that prohibits discrimination in housing based upon race, color, religion, or national origin and was amended to include sex, disability, and familial status? a) Fair Housing Act of 1968. b) Civil Rights Act of 1866. c) Executive Order 11063. d) Equal Opportunity Act of 1984.

Level Assessment b) familial status. A protected class that applies to any family with at least one person under 18 years of age who lives with at least one parent or legal guardian is familial status.

What is a protected class that applies to any family when at least one person under 18 years of age lives with at least one parent or legal guardian? a) sex. b) familial status. c) religion. d) national origin.

Level Assessment c) to assess if real estate brokerages are in compliance with fair housing laws. A tester is an individual who, without any bona fide intent to rent or purchase a home, apartment, or other dwelling, poses as a prospective buyer or renter for the purpose of gathering information. This information may indicate whether a housing provider is complying with fair housing laws.

What is a tester's job? a) to periodically provide continuing education about fair housing to brokerages. b) to evaluate banks for ethical lending practices. c) to assess if real estate brokerages are in compliance with fair housing laws. d) to administer the licensing exam.

Level Assessment a) Emotional support animals do not receive individual training, while service animals do. Emotional support animals do not receive individual training, while service animals do. Also, emotional support animals are only federally protected in residential spaces, while service animals are protected in both residential and commercial spaces.

What is one difference between an emotional support animal and a service animal? a) Emotional support animals do not receive individual training, while service animals do. b) Emotional support animals can only be dogs or miniature horses, while service animals can be any animal. c) Emotional support animals are regulated by the ADA, while service animals are regulated by the Fair Housing Act. d) Emotional support animals and service animals are the same thing.

Level Assessment d) The CFPB works to uphold fair and nondiscriminatory practices and fights discrimination practices in lending. Among other things, the CFPB works to uphold fair and nondiscriminatory practices and fights discrimination practices in lending.

What is the CFPB's role in fair housing? a) The CFPB enforces the Fair Housing Act. b) The CFPB enforces the ADA. c) The CFPB is the only national organization dedicated solely to ending discrimination in housing. d) The CFPB works to uphold fair and nondiscriminatory practices and fights discrimination practices in lending.

Level assessment a) marital status. The legal status of being either married, single, divorced, or widowed is marital status. This is a protected class under ECOA.

What is the legal status of being either married, single, divorced, or widowed? a) marital status. b) familial status. c) relationship status. d) marriage status.

Level Assessment d) to prohibit discrimination in housing. The main goal of federal fair housing laws is to prohibit discrimination in housing.

What is the main goal of federal fair housing laws? a) to make sure that negotiations in housing transactions are fair. b) to discipline agents who deal unfairly with clients. c) to make sure that every American can own a home. d) to prohibit discrimination in housing.

Level Assessment d) to reduce discriminatory credit practices in low income areas, and to require lenders to assist their local communities. The purpose of the Community Reinvestment Act (or CRA) is to reduce discriminatory credit practices in low-income areas, and to require lenders to assist their local communities by participating in community development projects.

What is the purpose of the CRA? a) to require lenders to disclose lending patterns. b) to require lenders to not discriminate based on age and marital status. c) to require lenders to issue the Loan Estimate and Disclosure Form. d) to reduce discriminatory credit practices in low income areas, and to require lenders to assist their local communities.

Level Assessment b) Do you plan to bear or adopt children? A lender cannot ask about childbearing or raising plans. They can ask the other questions.

What question is a lender NOT allowed to ask? a) Do you pay any child support? b) Do you plan to bear or adopt children? c) Are you married? d) I see your spouse is a party to the contract. What is their yearly income?

Level Assessment a) The agent should start by finding available homes within the client's price range. The agent should pick homes in different areas and neighborhoods. The agent should start by finding available homes within the client's price range. The agent should pick homes in different areas and neighborhoods. The agent should not do any of the other answer choices.

What's a good way for an agent to practice fair housing? a) The agent should start by finding available homes within the client's price range. The agent should pick homes in different areas and neighborhoods. b) The agent should advise a disabled client to always insist that a landlord pay for modifications. c) The agent should describe fair housing laws to clients and consider themselves as legal counsel. d) The agent should look at the client's demographic data and guide them to neighborhoods which are demographically similar.

How the ADA Affects Real Estate

When it comes to real estate, the most noticeable effects of the ADA are on: . The construction of real estate brokerages. . The operations of real estate brokerages. . Broker representation in transactions involving commercial property. Scope of the ADA: You see, many brokerages fall within the scope of the ADA because their location (perhaps in a mall or other retail facility, which is bound to follow the requirements of the ADA), or because the brokerage has 15 or more employees. This means that, while every brokerage should work to protect and honor the rights of people with disabilities, brokerages in locations that fall under ADA guidelines and brokerages with at least 15 employees must be especially certain to fulfill the legal obligations that the ADA imposes on them. Modifications and Accommodations: Such brokerages will need to make any physical modifications that are necessary for the office to be accessible to a person with a disability. In addition, the brokerage may need to make other reasonable accommodations, such as providing notetakers, Braille documents, assistive listening devices, accessible restrooms, or interpreters. Fair Housing Act: If, however, the ADA does not apply to a specific brokerage, the license holders who work there are still bound by the federal Fair Housing Act. This means that even license holders working at brokerages with fewer than 15 employees must make every effort to provide fair housing access for potential clients and customers with disabilities. Get You a Lawyer: Any brokerage with questions about its office's accessibility or general compliance should seek legal counsel.

Level Assessment b) HUD learns that a woman is about to be evicted on the basis of her newly diagnosed mental illness. An injunction is a court order that either stops an individual or entity from doing something, or tells them they need to start doing something. In this case, the woman who is about to be evicted on the basis of her newly diagnosed mental illness might need an injunction to stop the eviction.

When might an injunction be necessary? a) HUD learns that an apartment complex is installing new modifications for residents with disabilities. b) HUD learns that a woman is about to be evicted on the basis of her newly diagnosed mental illness. c) HUD learns an apartment complex has a three strikes, you're out policy for noise violations. d) HUD learns that the property manager for a senior citizen complex routinely denies families with children.

The Takeaway

Whew, that was a lot of information! Now you have a solid understanding of disability and how to best serve individuals who are disabled. Good job! In Chapter 5, you learned: ✅ To characterize the term "disability". ✅ To identify required acts of modification, accommodation, and accessibility. ✅ To understand and explain the rules and requirements set forth by the Americans with Disabilities Act and explain its exemptions. ✅ To compare the federal Fair Housing Act to the Americans with Disabilities Act. Now that you've gotten a good overview of all the relevant fair housing legislation, we're going to move on to your daily, fair practice as a real estate agent.

Level Assessment b) Civil Rights Act of 1866. The Civil Rights Act of 1866 prohibited discrimination in housing based on race or color. Later court cases used this Act to rule that it is ALWAYS illegal to discriminate in housing on the basis of race or color. No exceptions.

Which Act ruled that it is ALWAYS illegal to discriminate in housing based on race? a) Civil Rights Act of 1964. b) Civil Rights Act of 1866. c) Executive Order 11063. d) ECOA.

Level Assessment c) exclusively showing homes in a historically Hispanic neighborhood to a Hispanic couple. If a license holder were to exclusively show homes in a historically Hispanic neighborhood to a Hispanic couple, that would be a violation of the Fair Housing Act and could get the agent into serious trouble.

Which example would get a license holder into trouble? a) declining to comment on the racial makeup of a neighborhood to clients. b) directing a family to the neighborhood's school district official for any questions. c) exclusively showing homes in a historically Hispanic neighborhood to a Hispanic couple. d) showing a couple properties only within their price range.

Quiz Level 24 a) notify the local real estate legislative body with a summary of the complaint. HUD is not responsible for contacting any type of local legislative body on the complainant's behalf. HUD will notify both the complainant and the alleged violator.

Which is NOT one of the things HUD will do after it has a received a fair housing complaint? a) notify the local real estate legislative body with a summary of the complaint. b) investigate the complaint and determine whether there is reasonable cause to believe the Fair Housing Act has been violated. c) notify the complainant when they've received their complaint. d) notify the alleged violator of the complaint and permit that person to submit an answer.

Level Assessment d) renting a room in a house occupied by the owner. The Fair Housing Act does not apply to the rental of rooms or units in a dwelling containing living quarters occupied or intended to be occupied by no more than four families living independently of each other if the owner actually occupies one of the living units as their residence.

Which is exempt from the federal Fair Housing Act? a) flipping houses in a business that flips ten houses a year. b) renting multi-family units for a property manager. c) locating apartments for clients and receiving a commission from the property owner. d) renting a room in a house occupied by the owner.

Level Assessment a) All choices are correct. Brokers can utilize many different practices in order to protect themselves and their agents from fair housing complaints. This includes paper trails of all client interactions, giving agents access to a lawyer, providing regular discrimination trainings, and keeping current on fair housing laws.

Which of the following is a best practice brokerages can follow to protect themselves from fair housing complaints? a) All choices are correct. b) having a record or paper trail of all interactions with a client. c) regular training to stay current on federal, state, and local fair housing laws. d) hanging the fair housing poster in a central, prominent location in the brokerage office.

Quiz Level 24 a) refusing to rent an apartment to an unmedicated, bipolar woman because of her violent record. You can refuse a potential tenant if you feel they would put other tenants in danger.

Which of the following would NOT be a violation of the Fair Housing Act? a) refusing to rent an apartment to an unmedicated, bipolar woman because of her violent record. b) refusing to rent an apartment to a blind man because of his service dog. c) refusing to rent an apartment to a woman because of her sex. d) refusing to rent an apartment to a young woman because of her wheelchair.

Level Assessment d) An agent advertises a senior citizen community with the phrase "no children allowed." It is permitted to advertise senior citizen housing with the phrase "no children allowed." The other actions are violations.

Which of these scenarios does NOT violate fair housing law? a) An agent refuses to rent a house to a couple because one of them is Black and the other is white. b) An agent backs out of a sale with a buyer-client after discovering the client is Middle Eastern. c) An agent gives a very quick tour of an apartment unit to a mentally disabled man because the agent doubts the man can understand him. d) An agent advertises a senior citizen community with the phrase "no children allowed."

Level Assessment d) the Georgia Commission on Equal Opportunity. The Georgia Commission on Equal Opportunity (GCEO), through its Fair Housing Division, enforces the Georgia Fair Housing Act (also knows as the Georgia Fair Housing Law).

Who enforces the Georgia Fair Housing Law? a) the Georgia Equal Housing Office. b) the Georgia Fair Housing Office. c) the Georgia Fair Housing Commission. d) the Georgia Commission on Equal Opportunity.

Quiz Level 24 c) because of their location or because they have 15 or more employees. Many brokerages fall within the scope of ADA because of their location or because they have 15 or more employees.

Why do most brokerages fall within the scope of the ADA, and, therefore, must be extra careful about accessibility? a) because there is an addendum to ADA specifically pertaining to brokerages. b) because they have under 15 employees. c) because of their location or because they have 15 or more employees. d) None of the answer choices are correct.

The Takeaway

Words are important. Err on the side of caution, and use language and images that are nondiscriminatory and inclusive. In Chapter 7, you learned: ✅ To identify words, phrases, and various advertising techniques that could violate fair housing legislation Go, you! We've spent a lot of time talking about violations... Want to know what happens to the rule-breakers? Admit it. You have a morbid curiosity.

Changes in the Language Landscape

You are an agent in a brokerage. Another agent tosses an ad on your desk and asks you to revise. It says, Gorgeous penthouse suite! The master bedroom is huge. Perfect for you and your wife. Need a little extra space? The guest bedroom can be converted to a man cave! You roll your eyes. Really? A man cave? And does the ad have to be so heteronormative? According to HUD's advertising guidelines, though, all of these terms are "facially neutral." But do you really want to use them, if they could exclude or offend? What Have Other Agents Done?: Well, according to a survey from the 2013 Washington Business Journal, more and more agents and real estate developers in the Washington, D.C. area no longer use the term "master bedroom" in their floor plans. This is because many understand the negative connotations to the term, both gender-wise and historically, as at one point, the word "master" was used to mean a person who owned slaves. The survey found that for every 10 homebuilders in the D.C. area, six no longer use the word. That's a lot! Instead, these builders are using terms like "owner's suite" or "owner's bedroom."

Level Assessment a) Yes. Zoe is providing the woman with unequal services on account of her pregnancy. Yes. Zoe is providing the woman with unequal services on account of her pregnancy.

Zoe, a property manager, is showing a pregnant woman an apartment. Zoe is nervous about the woman's ability to climb stairs and walk around, and so she gives the woman a briefer-than-normal tour. Is this discriminatory? a) Yes. Zoe is providing the woman with unequal services on account of her pregnancy. b) No. As long as Zoe always gives abbreviated tours to those she thinks cannot handle the physical exertion, she is providing equal services. c) Yes. Zoe should have simply refused to show the woman around, if she felt uncomfortable about her pregnancy. d) No. Zoe is showing the woman consideration.

Facts of a Feather d) redlining.

a bank refuses to issue mortgages in a traditionally Hispanic neighborhood. a) not a violation. b) blockbusting. c) steering. d) redlining.

Facts of a Feather c) steering.

a property manager only shows a woman units in a building with mostly female residents. a) not a violation. b) blockbusting. c) steering. d) redlining.

Facts of a Feather

a property manager only shows a woman units in a building with mostly female residents. a) not a violation. b) blockbusting. c) steering. d) redlining. no

Facts of a Feather b) blockbusting.

an agent buys homes from white clients at a low price and then sells them at a high price to Black clients. a) not a violation. b) blockbusting. c) steering. d) redlining.

Facts of a Feather a) not a violation.

an agent only shows a prospect homes in their financial range. a) not a violation. b) blockbusting. c) steering. d) redlining.

Facts of a Feather b) blockbusting.

an agent panic peddles. a) not a violation. b) blockbusting. c) steering. d) redlining.

Facts of a Feather a) not a violation.

an agent shows a prospect one home by a church, one home by a school, one home by a park, and one home by a shopping center. a) not a violation. b) blockbusting. c) steering. d) redlining.

Facts of a Feather a) not a violation.

an agent tells a client that she cannot show him only homes in historically Asian neighborhoods a) not a violation. b) blockbusting. c) steering. d) redlining.

Facts of a Feather c) steering.

an agent tells a prospect that a certain neighborhood is "very diverse" and wiggles his eyebrows ominously. a) not a violation. b) blockbusting. c) steering. d) redlining.

Facts of a Feather b) blockbusting.

an agent tells white clients that property values are declining because of the influx of Hispanic residents. a) not a violation. b) blockbusting. c) steering. d) redlining.

Facts of a Feather

an agent tells white clients that property values are declining because of the influx of Hispanic residents. a) not a violation. no b) blockbusting. c) steering. d) redlining.

Level Assessment d) Community Reinvestment Act.

reduces filtering down a) Fair Housing Act. b) Home Mortgage Disclosure Act. c) Real Estate Settlement Procedures Act. d) Community Reinvestment Act.

Facts of a Feather b) Home Mortgage Disclosure Act.

requires lenders to disclose specific lending information. a) Fair Housing Act. b) Home Mortgage Disclosure Act. c) Real Estate Settlement Procedures Act. d) Community Reinvestment Act.

Level Assessment Yes. Religious organizations which rent to tenants for residential purposes are exempt from the Fair Housing Act. Yes. Religious organizations which rent to tenants for residential purposes are exempt from the Fair Housing Act.

A Christian organization owns a fourplex. It wants to rent to only Christian tenants. Under the federal Fair Housing Act, is this legal? a) No. Religious organizations are never allowed to discriminate based on religious preferences. b) Yes. Religious organizations which rent to tenants for residential purposes are exempt from the Fair Housing Act. c) Yes. Religious organizations which rent to tenants for both residential and commercial purposes are exempt from the Fair Housing Act. d) No. While private clubs can discriminate based on their preferences, religious organizations cannot.

Quiz Level 24 d) The bank is guilty of credit discrimination. The bank is guilty of credit discrimination.

A bank tells Sally, who is Black, that she is not qualified for a loan to buy a condo. Sally, suspicious, asks her white husband, who has very similar credit, to go in and make the same pitch for the same property. He is granted the loan. Evaluate this situation. a) The bank has done nothing wrong. b) The bank is guilty of bona fide discrimination. c) The bank's actions are not illegal, but they are certainly ethically questionable. d) The bank is guilty of credit discrimination.

Level Assessment a) the Fair Housing Act's protected classes, plus sexual orientation and gender identity. The NAR Code of Ethics includes the same protected classes as the Fair Housing Act, BUT ALSO specifies that REALTORS® must provide equal professional services to people regardless of sexual orientation or gender identity.

A broker belongs to NAR. What are NAR's protected classes? a) the Fair Housing Act's protected classes, plus sexual orientation and gender identity. b) the Fair Housing Act's protected classes, plus marital status. c) the same as the Fair Housing Act's protected classes. d) the Fair Housing Act's protected classes, plus age and veteran status.

Quiz Level 24 b) All choices are correct. The fair housing poster is required to be hung by HUD. The poster not only helps to educate agents on fair housing issues, but also shows clients that the personnel of a brokerage are committed to abiding by fair housing rules.

A broker's real estate office will have a copy of the fair housing poster because: a) It helps to inform and educate the agents of that brokerage of fair housing practices. b) All choices are correct. c) It shows that the personnel of the company will give equal treatment to all who enter the office. d) It is required by HUD.

Level Assessment c) affirmative marketing. Affirmative marketing is a HUD policy that specifically target tenants and homebuyers who may be able to take advantage of affordable housing options within the given jurisdiction. Direct mail to lower-income areas and eliminating language barriers help provide access.

A brokerage sends direct mail to residents in lower-income areas. They also publish advertising material in many different languages. What is this an example of? a) filtering down. b) steering. c) affirmative marketing. d) blockbusting.

Quiz Level 24 c) "It is the policy of our company not to answer questions of that nature. If you are concerned, you are free to do some research on your own." "It is the policy of our company not to answer questions of that nature. If you are concerned, you are free to do some research on your own" is a good answer, as it shows you won't answer racially discriminatory questions. You can also say "I don't know."

A client says to you, "I'm not racist, but I just want to know... is this a good neighborhood?" How should you respond? a) "Yes, it's a good neighborhood." b) "You should ask Mary, my fellow agent." c) "It is the policy of our company not to answer questions of that nature. If you are concerned, you are free to do some research on your own." d) "Some people have moved in from the east side of town, but they make excellent neighbors."

Level Assessment c) This prohibition may be legal. Housing for older persons is exempt from the familial status requirements of the Fair Housing Act if certain conditions apply.

A condo community states that no one under the age of 60 can live there. What is TRUE? a) They are violating the Fair Housing Amendments Act. b) They are violating Executive Order 11063. c) This prohibition may be legal. d) They are violating the "age" protected class of the federal Fair Housing Act.

Quiz Level 24 a) An injunction means a housing provider must start a service or stop some behavior immediately. An injunction means a housing provider must immediately start a service or stop some behavior.

A housing provider receives an injunction. What does this mean? a) An injunction means a housing provider must start a service or stop some behavior immediately. b) An injunction means a housing provider must return a security deposit immediately. c) An injunction means a housing provider must go to court immediately. d) An injunction means a housing provider must decrease costs immediately.

Quiz Level 24 c) The landlord is in violation of fair housing legislation, as the couple is protected under familial status. In this situation, the landlord is violating federal fair housing regulations, as pregnancy is protected under familial status.

A landlord is showing a young couple around a multi-family building and is ready to accept their rental application. The landlord finds out the couple is pregnant and decides to rent the unit to someone else, as he fears a screaming baby will upset neighbors. What is TRUE of this situation? a) The landlord is in violation of fair housing legislation, as the couple is protected under temporary disability. b) The landlord is unethical in his decision, but is not in violation of any federal regulations. c) The landlord is in violation of fair housing legislation, as the couple is protected under familial status. d) The landlord is free to make his own choices and has done nothing wrong in this situation.

Level Assessment a) Are you divorced? A lender may not ask if an applicant is divorced or widowed, but may ask if a borrower is married, unmarried, or separated.

A lender can ask all of the below questions EXCEPT: a) Are you divorced? b) Are you unmarried? c) Are you married? d) Are you separated?

Quiz Level 24 a) redlining. Refusing to grant financing based on area (and protected class) is known as redlining.

A lender tells his new hire that as a bank, they have a policy of never giving loans to people who live in a certain neighborhood by the highway. What is this an example of? a) redlining. b) blockbusting. c) steering. d) testing.

Level Assessment a) The apartment complex could be found in violation of fair housing laws, as its employee is discriminating on the basis of sex. The apartment complex could be found in violation of fair housing laws, as its employees are discriminating on the basis of sex.

A maintenance worker routinely spends more time fixing problems in women's apartments than men's because he thinks male tenants should already have this "handyman" knowledge. What is the BEST evaluation of this scenario? a) The apartment complex could be found in violation of fair housing laws, as its employee is discriminating on the basis of sex. b) While the maintenance worker's behavior is sexist, it does not violate fair housing laws. c) As long as the maintenance worker is giving "good enough" care to all tenants, it is fine if he goes above and beyond for some. d) While sex is a protected class under fair housing laws, it refers to discrimination based on sexual orientation.

Handicap Parking

A minimum of 2% of the number of parking spaces serving covered dwelling units must be made accessible for residents with disabilities. These parking spaces must also be located on an easily accessible route with enough space. If the unit has different types of parking, such as surface parking, garage, or covered spaces, a sufficient number of each type must be made accessible. The accessibility symbol is the well-known picture of a person using a wheelchair on top of a blue background.

Level Assessment d) The applicant can ask why their application was denied. The criteria that a property manager would use to decide who will or will not become a tenant not only has to be exact, it also has to be available for others to view. If anyone is turned down for a lease and they ask for the criteria, it must be given to them.

A property manager denies an applicant's request for housing. What can the applicant do? a) The applicant can request an accommodation. b) The applicant can do nothing. c) The applicant can immediately sue for a fair housing violation, especially if the denial was based on their criminal record. d) The applicant can ask why their application was denied.

Quiz Level 24 d) Under the ADA, the restaurant must try to remove the barriers to accessibility. Commercial and public buildings (like a restaurant) built before the passage of the ADA are required to remove barriers to accessibility. If they are unable to do so, they need to look into other forms of relief. Remember that the Fair Housing Act only protects residential buildings.

A restaurant built in the 1980s is inaccessible to people with mobility impairments. Evaluate. a) Because the restaurant was built before the passage of the Fair Housing Act, it is not required to do anything. b) Under the Fair Housing Act, the restaurant must try to remove the barriers to accessibility. c) Because the restaurant was built before the passage of the ADA, it is not required to do anything. d) Under the ADA, the restaurant must try to remove the barriers to accessibility.

Level Assessment b) The agent should suspect that the seller is being discriminatory, and immediately report it to their broker. A warning sign of discrimination is if the seller removes the property from the market to sidestep a potential purchase by a party who belongs to a protected class. The agent should talk to their broker.

A seller finds out the race of their prospective buyer, and decides to immediately pull the house off the market. What should the agent do? a) The agent should allow the seller to do this. The seller always gets to choose the buyer for their house. b) The agent should suspect that the seller is being discriminatory, and immediately report it to their broker. c) The agent should try in the future to better predict if their client will be discriminatory. d) The agent should reprimand the seller, but continue working with them.

Residential Accessibility

Accessibility simply means that a building or space is usable and navigable by everyone. While the federal Fair Housing Act establishes accessibility guidelines for residential spaces, the ADA establishes accessibility guidelines for public and commercial spaces. Let's start with residential accessibility. The Fair Housing Act requires that residential buildings be accessible. More specifically, the Act requires all newly constructed multi-family dwellings of four or more units intended for first occupancy after March 13, 1991, to have certain features. Required Features: . An accessible entrance on an accessible route. . Accessible common and public use areas. . Doors sufficiently wide to accommodate wheelchairs. . Accessible routes into and through each dwelling. . Light switches, electrical outlets, and thermostats in accessible locations. . Reinforcements in bathroom walls to accommodate grab bar installations. . Usable kitchens and bathrooms configured so that a wheelchair can maneuver about the space. Developers, builders, owners, and architects responsible for the design or construction of new multi-family housing may be held liable under the Fair Housing Act if their buildings fail to meet these design requirements. There have been many enforcement actions against those who failed to do so. Relief: Most of the cases have been resolved by decrees providing a variety of types of relief, including: . Retrofitting to bring inaccessible features into compliance (where feasible). . Providing alternatives (monetary funds or other construction requirements) that will provide for making other housing units accessible (if retrofitting is not feasible). . Training on the accessibility requirements for those involved in the construction process. . Mandates that all new housing projects comply with the accessibility requirements. . Monetary relief for those injured by the violations. . Promoting accessibility through building codes.

Level Assessment c) a current drug user. A person with a disability is any person who has a physical or mental impairment that substantially limits one or more major life activities, has a record of such impairment, or is regarded as having such an impairment. Current drug users are not considered disabled.

According to federal law, who is NOT considered disabled? a) a woman who has a history of severe depression. b) a man who uses a cane. c) a current drug user. d) a man who was perceived to be permanently disabled, when in fact the condition was temporary.

What Even Is Advertising?

Advertisements have been traditionally consumed through television, radio, billboards, and newspapers. However, advertising has changed dramatically since the passage of the Fair Housing Act, and there are more platforms on which to advertise than ever before. Under the Act, the definition of advertising is broad and includes print and online advertisements, materials such as brochures or applications, television and radio ads, and even speech. Speech Counts: Get this, Yoni : All verbal communication that occurs in person or over the phone to a prospective tenant, homebuyer, or borrower is considered a form of advertising.

Affirmative Marketing

Affirmative marketing is a HUD policy that requires every participating jurisdiction across the country to establish rules for marketing practices. These rules specifically target tenants and homebuyers who may be able to take advantage of affordable housing options within the given jurisdiction. Affirmative marketing activities include, but are not limited to, methods of advertising and community outreach that are designed to reach persons who are least likely to apply for the program. Regulations: So how does one... affirmatively market? Affirmative marketing requirements apply to housing within a participating jurisdiction with at least five HOME-assisted units (or properties with government restrictions on monthly rent and mortgage payment). These affirmative marketing regulations for housing project owners may include: . Restrictions on the ways to inform the public about affordable housing options in the community . Requirements to use public housing slogans or logos from the local government entities when advertising units with government-regulated prices . Documentation of all steps! Tell Everyone: Access to information is important when it comes to affirmative marketing. The more eyes, the better. 👀 So here are some ways to get the word out: . Send information through media outlets with wide circulation to the public. . Send direct mail to residents in lower-income areas, as they may be less likely to see electronic advertisements. . Publish advertising material in many different languages.

Chapter 9: Responsibilities and Scenarios

After completing this chapter, you will be able to: . Explain steps and precautions agents and brokers can take in order to ensure compliance with fair housing legislation. . Identify fair housing violations by various parties in different real estate scenarios. Why It Matters: In this chapter, we are going to get super practical. I'll describe exactly what your fair housing responsibilities are as an agent on a day-to-day basis, as well as that of your broker. (Some of this may be a bit of a review.) Then, I'll dive into specific ways that participants in a real estate transaction might discriminate. The point of this chapter is to allow you to rehearse a variety of scenarios so that when you're on your own, you'll know just what to do!

Level Assessment a) There are no exemptions to the requirement for the Equal Housing Opportunity logo. There are two main cases where the Equal Housing Opportunity logo is not required, sometimes known as the classified exemptions. The rest of the answering choices are all true.

All of the following is TRUE about fair housing advertisement regulations EXCEPT: a) There are no exemptions to the requirement for the Equal Housing Opportunity logo. b) Fair housing regulations cover print AND online advertisements. c) Advertising can NEVER use discriminatory language. d) Words like "white," "Christian," and "Black" cannot be used.

Quiz Level 24 c) Bill, who is currently addicted to opioids. Current drug users are not considered disabled under federal law. The other people in the answer choices are considered disabled.

All of the following meet the criteria for disability EXCEPT: a) Caroline, who is developmentally delayed. b) Jan, who is a recovering alcoholic. c) Bill, who is currently addicted to opioids. d) Al, who has AIDS.

Quiz Level 24 d) the MTA subway line. Public transportation falls under Title II of the ADA. The rest would fall under Title III.

All of the following would fall under Title III of the ADA EXCEPT: a) Cherrywood Golf Resort. b) McDonald's. c) M.D. Anderson Hospital. d) the MTA subway line.

Accommodations

Along similar lines, a landlord or real estate professional must make any accommodation that helps a person with a disability acquire and enjoy their dwelling, as long as it does not cause them undue financial burden. Policy, not Property: So, an accommodation is an alteration to policy, while a modification is an alteration to property. Below are some common requests for accommodations: EXAMPLE: . A unit transfer from an upper floor to a ground floor unit because of a mobility disability. . Interpreters or auxiliary aids to effectively communicate with management because an applicant or tenant has a hearing impairment . The provision that maintenance staff not use certain chemicals inside or near a unit due to severe respiratory disabilities . A reserved parking space close to a unit because of a mobility disability . A service animal despite a "no pets" policy Keep in Mind: If a property manager decides not to make accommodations for a person with a disability, it could be one of the biggest danger zones for a violation. 🚫 Not Obvious to the Naked Eye: Additionally, it's not always obvious that a person needs special accommodations. So, when a request is made, the property manager should be very careful if they plan on denying it. The license holder should seriously weigh whether the denial of this request could be considered a violation of the Fair Housing Act.

Fair Housing Poster

Along similar lines, each real estate office should post a special fair housing poster in a prominent location, so that all can see it as they come and go. This poster is required by HUD and is a declaration from the broker that the personnel of the company will give equal treatment to all who enter the office. 👍 HUD has stated that if an office is being investigated and this poster is not up, then it could be used as an indication that this office does not concern itself with fair housing matters. So put that poster up! in file (HUD_FairHousingPoster)

The Takeaway

Alrighty then! That's a wrap on the federal fair housing acts, as well as a quick look at Georgia's (very similar) fair housing legislation. In Chapter 1, you learned: ✅ To discuss the history of fair housing legislation and explain its effects on real estate. ✅ To explain the Fair Housing Act of 1968. ✅ To explain the Georgia Fair Housing Act of 1988. On to Chapter 2, where you'll learn about fair lending acts!

Equal Housing Opportunity Statement

Alternatively, when no other logotypes are used, three to five percent of an advertisement may be devoted to the Equal Housing Opportunity statement. This statement reads: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.

Exceptions to the Rule

Although you may not discriminate against people because of a disability, it is NOT illegal to refuse housing to prospective tenants or to evict current tenants who have a physical or mental impairment that poses a direct threat to other tenants. In cases like these, it is important that real estate professionals, landlords, prospective sellers, and other people bound by the Fair Housing Act prove that an actual and direct threat exists. The courts have also ruled that a landlord must also show that no reasonable accommodation could eliminate the direct threat posed by a tenant. EXAMPLE: A property manager receives an application from a man with unmedicated schizophrenia with a history of violence against others. Even though the person has a documented mental impairment, it is legal for the property manager to exclude him because of his history of violence. Tenants who may pose an indirect threat retain disability protections, however. For instance, say a property manager requires that everyone who applies to rent an apartment complete an application that includes information on their current place of residence. On her application to rent an apartment, a woman notes that she currently resides in Porter House. The manager of the apartment complex knows that Porter House is a group home for women receiving treatment for alcoholism. Based solely on that information and his personal belief that alcoholics are likely to cause disturbances and damage property, the manager rejects the applicant. This is NOT OKAY because it is based on a generalized stereotype related to a disability, rather than an individualized assessment of any threat to other people or property based on reliable, objective evidence about the applicant's recent past conduct. The woman could possibly pose an indirect threat, but that isn't a legal reason to exclude her.

Level Assessment b) No. An ad should give an adequate representation of all the different kinds of people who might seek housing. It should not show only one race.

An ad for housing shows people of just one race. Under federal fair housing laws, is this allowed? a) No. An ad should never use images of people, to avoid just this kind of issue. b) No. An ad should give an adequate representation of all the different kinds of people who might seek housing. It should not show only one race. c) Yes, but only if the representation is of a minority group. d) Yes, but only if the ad accurately represents the ethnic makeup of the area.

Level Assessments d) No. An ad should give an adequate representation of all the different kinds of people who might seek housing. It should not show only one race. An ad should give an adequate representation of all the different kinds of people who might seek housing. It should not, for example, show only one race of people.

An ad for housing shows people of just one race. Under federal fair housing laws, is this allowed? a) Yes, but only if the ad accurately represents the ethnic makeup of the area. b) No. An ad should never use images of people, to avoid just this kind of issue. c) Yes, but only if the representation is of a minority group. d) No. An ad should give an adequate representation of all the different kinds of people who might seek housing. It should not show only one race.

Level Assessment b) Usually, terms like "no kids" are discriminatory advertising. But when advertising a specific senior community, the phrases are acceptable. In general, terms like "adults only" and "no kids" count as discriminatory advertising. But when advertising a specific senior community, the phrases are fine and acceptable.

An advertisement reads, "Lively senior citizen community. No families with small children, please." Evaluate the ad. a) It is never acceptable to mention a protected class in an ad. b) Usually, terms like "no kids" are discriminatory advertising. But when advertising a specific senior community, the phrases are acceptable. c) Usually, protected classes cannot be mentioned in an ad. Exceptions can be made, though, for age, family status, and race. d) It is always acceptable to advertise for families without children.

Level Assessment b) The agent is steering. His good intentions don't matter-this is still a discriminatory action. The agent is steering. His good intentions don't matter-this is still a discriminatory action.

An agent is showing a Jewish family a home. "I knew you'd enjoy this neighborhood," the agent says. "Look! It's a block from the synagogue! And I know for a fact that your neighbors would love to have you over for Rosh Hashanah." What is TRUE? a) Religion is not a protected category under fair housing law, so the agent has done nothing wrong. b) The agent is steering. His good intentions don't matter-this is still a discriminatory action. c) There is no discrimination in this example. The agent is looking out for his client's best interest. d) Because the agent's intentions are good, he cannot be discriminating.

Discrimination Without Intent

An agent may be aware of all the rules, but still find themselves discriminating even if they didn't intend to do so. EXAMPLE: An agent has a customer who is in a wheelchair. The agent decides that two story homes would probably not be appropriate for someone in a wheelchair. There may not be ill will in this assumption, but it is not the license holder's responsibility to make that type of decision for their client. The best way to avoid accusations of discrimination is to treat everyone who enters your real estate office exactly the same. Standard Questions: Some offices have created a series of questions that agents are supposed to ask ALL potential clients to determine the person's needs. These are typically questions like, "Are you interested in a two story home?" or, "Do you have any special needs in your family that need to be addressed?"

Level Assessment b) steering. Steering is the illegal act of guiding prospective home buyers towards or away from certain neighborhoods or areas because of their membership in a protected class.

An agent only shows homes to Hispanic prospects in historically Hispanic neighborhoods. What is this an example of? a) redlining. b) steering. c) blockbusting. d) panic peddling.

Level Assessment d) The agent should never have revealed the buyer's race, and he should have told his client he would not put up with that kind of talk. The agent should never have revealed the buyer's race, and he should have told his client he would not put up with that kind of talk.

An agent receives a bona fide offer from a buyer. The agent passes the offer along to his seller-client. The client asks about the buyer's race. The agent tells him. The client decides he won't accept the offer on account of the buyer's race. Evaluate. a) The agent was simply answering his client's question. He did nothing wrong. Plus, the client always gets to choose who buys their house. b) The agent should have tried to talk his client into selling to the buyer, regardless of the buyer's race. c) A bona fide offer is only a preliminary offer, so while the agent's behavior is questionable, it is not actually illegal. d) The agent should never have revealed the buyer's race, and he should have told his client he would not put up with that kind of talk.

Level Assessment b) This is a violation under the Georgia Fair Housing Law and the federal Fair Housing Act. This is a violation under the Georgia Fair Housing Law and the federal Fair Housing Act. Remember, these laws are substantively the same.

An agent refuses to work with Huma because she is Middle Eastern. Evaluate. a) This is a violation under the federal Fair Housing Act, but not the Georgia Fair Housing Law. b) This is a violation under the Georgia Fair Housing Law and the federal Fair Housing Act. c) This does not violate state or federal fair housing law. d) This is a violation under the Georgia Fair Housing Law, the federal Fair Housing Act, and RESPA.

Level Assessment d) steering only at the request of the client. A license holder should never steer! They should do the duties listed in the other answer choices.

An agent should follow all of the following fair housing practices EXCEPT: a) being inclusive. b) using price range as a guide. c) getting legal help with exemptions as needed. d) steering only at the request of the client.

Level Assessment c) The agent is steering within the condominium community. The agent is illegally steering within the condominium community. It is irrelevant that the agent is concerned about the safety of the children. Blockbusting and redlining are other fair housing violations.

An agent shows only first-floor condominiums to a family with children when there are also available units on the fifth floor. The agent is worried about the safety of the children in such a high unit. What is true of this situation? a) The agent is engaged in blockbusting. b) The agent is engaged in redlining. c) The agent is steering within the condominium community. d) The agent is legally acting in the best interests of his buyers.

Level Assessment a) Nothing. The apartment manager can legally disqualify him on those grounds. The apartment manager can legally disqualify Frank on both those grounds.

An apartment manager rejects Frank's apartment application. When Frank asks why, the manager says that his low credit score and prison record disqualify him. What should Frank do? a) Nothing. The apartment manager can legally disqualify him on those grounds. b) Frank should sue on grounds of financial discrimination. A prison record, though, is a legal reason to disqualify him. c) Frank should sue on grounds of discrimination. d) Frank should approach his local fair housing agency.

Level Assessment c) An agent refuses to show an apartment to a woman because she has a poor credit score. There are two groups that a real estate license holder DOES have the legal right to turn down in certain situations: People too young to enter a legal contract (that is, younger than 18); and people who have a poor credit score, don't have the means to obtain a home loan, or otherwise have an inability to pay.

Analyze the following scenarios. Which does NOT violate the federal Fair Housing Act? a) An agent refuses to rent a house to a family with eight children. b) An agent suggests that a group of female roommates "would be more comfortable" in a certain part of town, and doesn't show them other properties. c) An agent refuses to show an apartment to a woman because she has a poor credit score. d) An agent backs out of a deal once he learns that his white customer has a Black wife.

Online Advertising

And what about the words real estate agents use online to advertise to prospective clients? Do those count, too? Excellent question. Internet advertising is subject to all of the fair housing guidelines that apply to any advertising. Brokers and their agents are also responsible for the content. Case Study: Facebook Good ol' Facebook. I remember when it was a mere twinkle in Zucky's eye. (That's what I call Mark Zuckerberg. We fellow robots are on good terms. 🔥) In April 2018, HUD filed a complaint against Facebook, claiming that its targeted ads allowed property managers to discriminate against possible renters and buyers. As a result, Facebook said that it would remove more than 5,000 target ad options. However, this may not solve the problem. Critics have suggested that there are loopholes. For example, although Facebook is likely to get rid of the term "Hispanic," an advertiser could use common interests (for example, specific Hispanic artists that are less known by other communities) in order to still exclude Hispanic audiences. So, with all the social media and what-have-you, there are even more ways to discriminate, sigh.

Informing Commercial Clients About the ADA

Any commercial real estate that a license holder shows to a potential buyer, customer, or buyer-client will most likely fall within the scope of the ADA's requirements. ADA Requirements Apply: This means that the license holder should inform the client or customer that these ADA requirements apply to the property. Finish-Out: If the space does not already comply with ADA accessibility requirements, then the finish-out (i.e., the adaptation of a space for the buyer or tenant's use) must include any alterations necessary to ensure that the space is accessible and complies with ADA standards.

Quiz Level 24 b) TRUE. True. Any person who believes that they have been injured by the discriminatory practices of a real estate license holder has one year to file a complaint with HUD.

Any person who believes that they have been injured by the discriminatory practices of a real estate license holder has one year to file a complaint with HUD. a) FALSE. b) TRUE.

Steering

As I mentioned earlier, steering is the illegal act of guiding prospective home buyers towards or away from certain neighborhoods or areas because of their membership in a protected class. Steering generally happens in one of two ways: . A real estate agent will advise a client to purchase homes in particular neighborhoods based on race or another protected class. . A real estate agent will fail to show or inform buyers of homes that meet their specifications based on race or another protected class. EXAMPLES: . An agent only shows Black prospects homes in historically Black neighborhoods. . An agent hints to a white family that an integrated neighborhood is not in their best interests. . A property manager suggests that a family with young children not live on the top floor of an apartment complex. A Look, a Nod, a Scratch of the Nose Steering can be very subtle: a word, a phrase, a facial expression. Maybe the agent makes a disgusted face when talking about a certain neighborhood. Or maybe they say "eh" and shrug their shoulders when describing a certain area. Of course, this is very nuanced and hard-to-prove stuff, but if you are ever around another agent who seems to communicate steering in this way, trust your gut, and bring it up with your broker. The Client's Choice: You know this already, Yoni , but it's pretty easy to avoid steering. It's as easy as this: The client gets to choose where they want to live.

National Association of REALTORS® Stance

As an agent, you may belong to NAR. What do they have to say about fair housing? REALTORS© shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. Real estate professionals also shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of any of the aforementioned factors. They also shall not discriminate against those protected classes in their real estate employment practices. Two More Protected Classes: Notice that the NAR Code of Ethics includes the same protected classes as the Fair Housing Act, BUT ALSO specifies that REALTORS® must provide equal professional services to people regardless of sexual orientation or gender identity. Equal Professional Service Model: Next, let's look at NAR's Equal Professional Service Model. This model is there to make sure you're reaching out to ALL communities in ways that work for them. This kind of model involves a ton of consistency and things like: . Asking standardized questions. . Consistent record keeping. . Consistency in how initial contact is made with all customers and clients. . Gathering objective information about consumers' needs. . Letting consumers set their own limits. . Offering a variety of choices.

Level Assessment c) Sexual orientation and gender orientation are not protected classes under the Fair Housing Act. However, Ashley may have other avenues of recourse (local protections, if the housing is owned or operated by HUD, etc.). Sexual orientation and gender orientation are not protected classes under the Fair Housing Act. However, some court cases have found that discrimination under sexual orientation or gender identity can be prosecuted under the Fair Housing Act under one of its seven protected classes. Plus, sexual orientation and gender identity are protected in some states, cities, and towns, as well as under NAR and HUD's Equal Access Rule.

Ashley is transgender. She alleges that Ray, a landlord, refused to rent to her and her husband on that basis. Has Ray violated the Fair Housing Act? a) Yes. Sexual orientation and gender orientation are protected classes under the Fair Housing Act. b) No. A landlord can refuse housing to whomever they like. c) Sexual orientation and gender orientation are not protected classes under the Fair Housing Act. However, Ashley may have other avenues of recourse (local protections, if the housing is owned or operated by HUD, etc.). d) Yes. Marital status is covered under the Fair Housing Act.

Level Assessment b) If she files with the GCEO, she has one year. If she files with HUD simultaneously, she also has one year. A complainant has one year from the time of the alleged violation to file with the GCEO. That's the same timeline as HUD!

Ashley wants to file a fair housing complaint. How long does she have to file? a) If she files with the GCEO, she has one year. If she files with HUD simultaneously, she has six months. b) If she files with the GCEO, she has one year. If she files with HUD simultaneously, she also has one year. c) If she files with HUD but NOT with the GCEO, she has three years. d) If she files with HUD, she has two years.

A Last Note on Discriminatory Clients

At this point, it must be very clear that as an agent, you should not permit discrimination by your client. Indeed, if an agent goes along with a client's discriminatory act or speech, the agent is just as liable for violating fair housing laws. Don't be complicit! What does this mean? Well, if your client starts whispering conspiratorially about "those people," don't laugh nervously. And don't let it pass, either. Speak up. If they don't stop, it's time to break up. It can be difficult, and uncomfortable, to know how to react in these situations. Keep your broker in the loop about such incidents, even if they seem to be very much in the gray area.

The Takeaway

Awesome sauce, Yoni ! You awesomely, saucily, poured the sauce of your knowledge on the awe on my heart. How delicious! Now you've gotten even more practice at the day-to-day fair housing skills you need to have. In Chapter 9, you learned: ✅ To explain steps and precautions agents and brokers can take in order to ensure compliance with fair housing legislation ✅ To identify fair housing violations by various parties in different real estate scenarios Ahhh! It's the end of the level as you know it! And I feel fiiiiine.

Public Housing

Besides its role in fair housing, HUD does many other important things. Let's switch gears to talk about HUD's role in public and subsidized housing. Public housing under HUD was implemented in order to provide decent and safe rental housing for eligible low-income families, the elderly, and persons with disabilities. There's a large range of types of public housing, from single-family homes to high-rise apartments for elderly families. About 1.2 million households live in public housing units. HUD provides federal aid for local housing agencies who manage the housing for low-income residents at affordable rents. HUD also helps with technical and professional assistance in the various planning, development and management stages of these developments. Eligibility: Here's what housing agencies look at to determine eligibility: . Annual gross income . Whether an individual qualifies as elderly . Whether an individual qualifies as having a disability . Family status . U.S. citizenship or eligible immigration status If an individual or family is designated eligible, the housing agency will proceed to check references. Housing agencies are required to deny admission to applicants whose past habits or activities determine they may prove detrimental to other tenants.

Emotional Support Animals

Besides service animals, you've probably heard of emotional support animals, too. Also known as assistance animals, they are not individually trained. They provide emotional support for their owners who suffer from certain mental and psychological conditions. Similarities to Service Animals: . Size, weight, and breed restrictions do not apply to either. . Vaccinations are required for both. . Pet fees are waived for both. The landlord, however, can charge a security deposit and may still seek money from the tenant if there is any damage caused by the animal to the home. Also, if there is a nuisance issue, the landlord does have the right to try to remove the animal through legal proceedings. Differences from Service Animals: . Emotional support animals do not receive individual training, while service animals do. . Emotional support animals are only federally protected in residential spaces. Service animals are protected in both residential and commercial spaces. Fair Housing Act and ADA: Why, you ask? Well, the Fair Housing Act, which covers residential dwellings, provides for both service animals and emotional support animals as an accommodation. The ADA, which covers public spaces, provides only for service animals as an accommodation. So, Sigfried, an emotional support duck, is a reasonable accommodation at home but not in the grocery store. Melville, a service dog, is a reasonable accommodation at home and also in the grocery store. 🐕 Note: Some state and local governments have laws that do allow people to take emotional support animals into public places.

Quiz Level 24 a) Betty should say that she can't take this factor into account, and show them houses in a range of neighborhoods that match their other parameters. Betty should tell them that she can't take this factor into account. She should show them properties in a range of neighborhoods that match their other specifications. She can also direct them to other resources which could inform the clients about the location of synagogues.

Betty is an agent. She is showing properties to a Jewish couple. They ask to be shown only houses near synagogues. What should Betty do? a) Betty should say that she can't take this factor into account, and show them houses in a range of neighborhoods that match their other parameters. b) Betty should show them only houses by synagogues. c) Betty should show them no houses by synagogues, even if the properties perfectly match the couple's other parameters. d) Betty should show them only houses by synagogues, and also direct them to other resources which could give them additional information about this.

Level Assessment b) a fair housing violation. This is a fair housing violation (providing unequal services based on sex).

Bill, an agent, always spends much more time with his female clients than his male clients. What is this an example of? a) redlining. b) a fair housing violation. c) steering. d) sexist but not illegal service.

Quiz Level 24 b) panic selling. Blockbusting is also widely referred to as panic selling in the real estate community.

Blockbusting may also be referred to as: a) steering. b) panic selling. c) redlining. d) puffing.

Facts of a feather c) religion

Buddhist. a) race b) disability c) religion d) national origin

Quiz Level 24 a) Title II. Buses would fall under Title II of the ADA.

Buses would fall under what title of the ADA? a) Title II. b) Title IV. c) Title I. d) Title III.

Title IV: Telecommunications

Companies offering telephone service must offer telephone relay services to allow communications access for people with speech and hearing impairments. There are many kinds of relay services, using various technologies. For example: . Text-to-Voice (TTY): A device in which typed conversation can be transcribed into spoken conversation, and vice versa; this, for example, can help a hearing-impaired person speak with a hearing person. . Video Relay Service (VRS): A hearing-impaired individual can sign to a connected Communication Assistant (who is fluent in American Sign Language) via video equipment, who can then simultaneously voice to the other party what the individual has signed Title IV also requires closed captioning of federally funded public service announcements. Note that the FCC administers this title of the ADA.

Level Assessment c) The Acts are very similar. The Georgia Fair Housing Act closely mirrors the federal Fair Housing Act.

Compare the Georgia Fair Housing Act to the federal Fair Housing Act. a) The Acts are similar in their prohibitions, but different in their exemptions. b) The Acts are similar in their exemptions, but different in their prohibitions. c) The Acts are very similar. d) The Acts are very different.

HUD's Publisher's Notice

Conversely, such advertisements may be grouped with other advertisements under HUD's Publisher's Notice, which states, All real estate advertised herein is subject to the Federal Fair Housing Act, which makes it illegal to advertise "any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation, or discrimination. We will not knowingly accept any advertising for real estate which is in violation of the law. All persons are hereby informed that all dwellings advertised are available on an equal opportunity basis.

Level Assessment a) race, color, religion, national origin, sex, marital status, age, receiving public assistance, exercise of rights under Consumer Credit Protection Act. ECOA protects on the basis of race, color, religion, national origin, sex, marital status, receipt of income from any public assistance program, the exercise in good faith of their rights under the Consumer Credit Protection Act, and age.

ECOA protects on the basis of what protected classes? a) race, color, religion, national origin, sex, marital status, age, receiving public assistance, exercise of rights under Consumer Credit Protection Act. b) race, color, religion, national origin, sex, receiving public assistance, exercise of rights under Consumer Credit Protection Act. c) race, color, religion, national origin, sex. d) race, color, religion, sex.

Title I: Employment

Employers are required to provide reasonable accommodation to individuals with disabilities, and they may not discriminate against an individual with a disability when they are making decisions about hiring or promotions. Employers may ask about a potential hire's ability to perform a job but cannot ask whether they have a disability or about the extent of that person's disability. 15+ Employees: The ADA covers employers with 15 or more employees.

Quiz Level 24 d) ECOA. ECOA prohibits lenders from discriminating against credit applicants on the basis of their race, color, religion, national origin, sex, marital status, age, or use of public assistance. This example shows discrimination based on marital status.

Ethel and Fred, a couple, are buying a home together. They are not married. 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: a) CRA. b) the Fair Housing Act. c) RESPA. d) ECOA.

Level Assessment d) Because only a few housing transactions were done with federal involvement in those days, these Acts had few results. Because only a few housing transactions were done with federal involvement in those days, these Acts had few results.

Evaluate the effectiveness of Executive Order 11063 and the Civil Rights Act of 1964. a) While Executive Order 11063 was effective in terms of housing transactions, the Civil Rights Act of 1964 was mostly a failure. b) Because most housing transactions were done without federal involvement in those days, these Acts had strong results. c) While the Civil Rights Act of 1964 was effective in terms of housing transactions, Executive Order 11063 was mostly a failure. d) Because only a few housing transactions were done with federal involvement in those days, these Acts had few results.

HUD's Advertising Guidelines

First up: When it comes to ads, what counts as discriminatory language? What doesn't? And according to whom? Facially Discriminatory and Neutral Language: HUD offers several guidelines around advertising. They determine legality based on if a word, phrase, or image is "facially discriminatory." This phrase refers to if language is "on its face" discriminatory. In other words, HUD outlaws the really obvious, discriminatory stuff. The more subtle stuff ("facially neutral") is not in itself a violation. Guidelines: HUD offers many examples of what license holders can and cannot say. For instance: Illegal: white family home, no Irish, no Jews, Christian home, no wheelchairs, no kids allowed, the mention of any protected class. There are a few exceptions to the above: . In general, terms like "adults only" and "no kids" count as discriminatory advertising. But when advertising a specific senior community, such as a 55+ community, the phrases are fine and acceptable. . While it is usually forbidden to mention a protected class (even in a preferential way, like "families only"), a protected class can be mentioned when it comes to sex. Gender preferences can be stated in roommate seeking situations. Legal: master bedroom, rare find, desirable neighborhood, apartment complex with chapel, Santa Claus/Easter Bunny/St. Valentine's Day images, phrases such as "Merry Christmas" or "Happy Easter," mother-in-law suite, bachelor apartment, non-smoking, quiet streets, kosher meals served on the premises

National Fair Housing Alliance

Founded in 1988, the National Fair Housing Alliance (NFHA) is the only national organization dedicated solely to ending discrimination in housing. NFHA consists of more than 220 private, nonprofit fair housing organizations, state and local civil rights agencies, and individuals from all over the country.

Protected Classes Memory Trick

Good job! Now you understand the populations of each protected class. Here's a lil' memory trick to help you remember: How about a game of Facts of a Feather?

Occupancy and Familial Status

HUD also deals with housing limitations. In some cases, imposing limitations on the number of occupants allowed in a dwelling may constitute discrimination on the basis of familial status. 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. The law does not prohibit local regulations regarding the maximum number of persons allowed to occupy a dwelling. Keating Memo: However, in 1999, HUD adopted what is known as the Keating Memo, a 1991 internal memo from former HUD General Counsel Frank Keating. The memo provided this guideline: The Department believes that an occupancy policy of two persons in a bedroom, as a general rule, is reasonable under the Fair Housing Act...However, the reasonableness of any occupancy policy is rebuttable"* and nothing *"implies that the department will determine compliance with the Fair Housing Act based solely on the number of people permitted in each bedroom. The memo went on to declare that in appropriate circumstances, owners and managers may develop and implement reasonable occupancy requirements based on factors such as the number and size of sleeping areas or bedrooms and the overall size of the dwelling unit. The end result is that familial status discrimination cannot be decided solely on how many people live in a room. Reasonable Distinctions: The memo uses this example. Consider two situations where a housing provider refused to permit a family of five to rent a two-bedroom dwelling based on a "two people per bedroom" policy: . Situation 1: The complainants are a family of five who applied to rent an apartment with two large bedrooms and spacious living areas. . Situation 2: The complainants are a family of five who applied to rent a mobile home space on which they planned to live in a small two bedroom mobile home. According to the memo, a charge of familial status discrimination seems reasonable in the first situation, but not the second.

Subsidized Housing

HUD also helps apartment owners offer reduced rents to low-income tenants. This is called subsidized housing. There are a few major differences between public housing and subsidized housing. In a public housing situation, the housing authority owns the resident's building and is the resident's landlord. A private company may manage the building for the housing authority or be part of the ownership, but the building is controlled by the housing authority. In subsidized housing, the housing authority is not the landlord. The housing is owned and operated by private owners who get subsidies in exchange for renting to low- and moderate-income individuals and families. Owners can be individual landlords or for-profit or nonprofit corporations.

Quiz Level 24 d) conciliation, also known as voluntary compliance. This process is called conciliation, also known as voluntary compliance.

HUD is working with a housing provider to make reparations to a tenant whom the provider admits they discriminated against, albeit unintentionally. Currently, the mediator is drawing up a list of possible actions for the provider to take. What is this process called? a) redlining, also known as mediating. b) testing, also known as arbitrating. c) steering, also known as blockbusting. d) conciliation, also known as voluntary compliance.

Service Animals

Hold on a moment. What exactly is a service animal? Service animals are defined as animals that are individually trained to do work or perform tasks for people with disabilities. Usually, they are dogs. 🐶 Service Dog Duties: . Guiding people who are blind . Alerting people who are deaf . Pulling a wheelchair . Picking up items for a person who uses a wheelchair . Providing stability for a person who has difficulty walking. . Alerting and protecting a person who is having a seizure. . Alerting a person with diabetes when their blood sugar reaches high or low levels. . Preventing a person with autism from wandering away . Reminding a person with mental illness to take prescribed medications . Calming a person with Post Traumatic Stress Disorder (PTSD) during an anxiety attack . Performing other duties Acceptable Questions: In situations where it is not obvious that a dog is a service animal, staff may ask only two specific questions: Is the dog a service animal required because of a disability? What work or task has the dog been trained to perform? Staff are NOT allowed to request any documentation for the dog, require that the dog demonstrate its task, or inquire about the nature of the person's disability. Miniature Horses: In addition to dogs, miniature horses can occasionally be approved as a service animal. The facts to consider with horses are: . Whether the miniature horse is housebroken. . Whether the miniature horse is under the owner's control. . Whether the facility can accommodate the miniature horse's type, size, and weight. . Whether the miniature horse's presence will compromise legitimate safety requirements necessary for safe operation of the facility.

Exemption #4: Housing for Older Persons

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

ADA Compliance

How can a broker work to comply with the Americans with Disabilities Act? There are a few things they can do. Accommodations: . Make reasonable changes to their policies and procedures to ensure their services and offices are available to people with disabilities. . Provide auxiliary aids and services at the brokerage's expense, like interpreters, note-takers, assistive listening devices, audio recordings, or materials in Braille. . If a broker is representing parties to transactions that involve places of public accommodations, they should recommend that their clients hire experts to conduct an ADA review. Removal of Barriers: To provide access to clients who might need it, brokers must also remove architectural barriers where it is possible. Here are some of the ways they might need to do this: . Install ramps. . Widen doors. . Place grab-bars in bathroom stalls. . Remove high-pile carpet.

Civil Rights Act of 1866

I'm going to take you way back. We have to do a little time traveling to learn how civil rights acts led to fair housing and lending acts, which in turn led to you, in a real estate office, following certain rules. So, let's start with the Civil Rights Act of 1866! This Act prohibited discrimination in housing based on race or color. Unfortunately, because of other racist laws and practices at the time, this Act did not make much of an impact. Still, you might think of this as the original fair housing statute. Later court cases used this Act to rule that it is ALWAYS illegal to discriminate in housing on the basis of race or color. No exceptions.

Americans with Disabilities Act

I've already mentioned it a few times, but The Americans with Disabilities Act, passed in 1990, is a federal civil rights law enacted to prohibit discrimination against and create standards for people with disabilities. Titles of the ADA: There are five parts to the ADA. Title I: Employment. Title II: Public Entities and Public Transportation. Title III: Public Accommodations and Commercial Facilities. Title IV: Telecommunications. Title V: Miscellaneous. Know which number corresponds to which title, as you may be tested on that in the licensing exam. Exemption: Like the Fair Housing Act, religious organizations and private clubs are exempt from the ADA.

Who Is HUD?

I've mentioned the Department of Housing and Urban Development (HUD) before, but let's take a few moments to learn more about this department. HUD was created in 1937 through the U.S. Housing Act. In 1965, it was founded as a Cabinet department as part of the "Great Society" program of President Lyndon Johnson to help develop and carry out policies on housing and metropolises. Mission Statement: These days, HUD's mission is: . To create strong, sustainable, inclusive communities and quality affordable homes for all. . To strengthen the housing market to bolster the economy and protect consumers. . To meet the need for quality affordable rental homes . To utilize housing as a platform for improving quality of life. . To build inclusive and sustainable communities free from discrimination. . To transform the way HUD does business. The Enforcer: HUD enforces the federal Fair Housing Act. In addition, it provides assistance and guidance in several other housing-related matters. Offices and Programs: We will start our journey through HUD by examining the below: . The Fair Housing and Equal Opportunity Office (FHEO). . The Fair Housing Assistance Program (FHAP). . The Fair Housing Initiatives Program (FHIP), which can be broken down into four initiatives.

Level Assessment d) 1 year. HUD allows a full year to pass before the statute of limitations ends regarding a fair housing complaint.

If pursuing action through HUD, a fair housing complaint must be filed within how long of the alleged violation? a) 90 days. b) 180 days. c) 2 years. d) 1 year.

Quiz Level 24 c) should be able to purchase a house in a predominantly white neighborhood, even though he is Black. In Buchanan v. Warley, the court ruled that William Warley should be able to purchase a house in a predominantly white neighborhood, even though he is Black.

In Buchanan v. Warley, the court ruled that William Warley: a) should not be able to purchase a house in a predominantly white neighborhood, because he is Black. b) should buy Buchanan's home as soon as possible. c) should be able to purchase a house in a predominantly white neighborhood, even though he is Black. d) could purchase a house in a predominantly white neighborhood, but could not buy Buchanan's home.

Record and Perception of Impairment

In addition, a person can be disabled under the law if: . They have a record of impairment, or . They are perceived to have the impairment (regardless of whether they actually have the impairment or not). EXAMPLE: Martin has bipolar disorder. He is not currently experiencing episodes, but because he has this history, he can be considered disabled. EXAMPLE: An agent believes that a buyer-prospect is cognitively impaired. Based on this belief, the agent refuses to offer his services to the prospect. It turns out that the prospect is not actually cognitively impaired. This doesn't matter - the agent has violated federal law.

Quiz Level 24 In a public housing situation, the housing authority owns the resident's building and is the resident's landlord. In subsidized housing, the housing authority is not the landlord.

In both public housing and subsidized housing, the housing authority serves as the resident's landlord. a) FALSE. b) TRUE.

Equal Housing Opportunity Slogan

In space advertising which is less than four column inches (one column four inches long or two columns two inches long) of a page in size, the Equal Housing Opportunity slogan should be used. This slogan simply reads, "Equal Housing Opportunity." HUD's Publisher's Notice: Conversely, such advertisements may be grouped with other advertisements under HUD's Publisher's Notice, which states, All real estate advertised herein is subject to the Federal Fair Housing Act, which makes it illegal to advertise "any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation, or discrimination. We will not knowingly accept any advertising for real estate which is in violation of the law. All persons are hereby informed that all dwellings advertised are available on an equal opportunity basis.

Omnibus Appropriations Act of 1997

In the 1997 Omnibus Appropriations Act, 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. Self-Testing: If they find discriminatory practices in their business, then they are allowed to remedy these without federal lawsuits. This Act encourages lenders to be critical about their lending practices and to engage in self-testing, which will ideally lead to more equitable lending practices.

Home Mortgage Disclosure Act of 1975

A law called the Home Mortgage Disclosure Act (HMDA), enacted in 1975, requires lenders involved with federally guaranteed or insured loans to not discriminate in the geographical distribution of their loans. In other words, the HMDA is designed to prevent redlining, as well as other discriminatory lending practices. In order to accomplish this goal, the HMDA requires lenders to disclose specific lending information, including each borrower's race, ethnicity, gender, and age. In essence, lenders must disclose how many loans they offer to specific communities, as well as the types of loans and the terms of those loans. This allows HUD to spot problematic lending patterns and helps support lawsuits or other disciplinary measures that HUD deems necessary. Acceptable Questions, Revisited: Because of HMDA, lenders must ask for race, ethnicity, gender, and age to monitor for discriminatory patterns. However, this is usually done with paperwork, and the lender cannot discriminate based on these categories (unless, of course, the applicant is a minor).

Exemption #2: Rental of Rooms or Units in Owner-Occupied Property

A one-to-four family dwelling is exempt, provided that: . The owner occupies one of the units. . No discriminatory advertising is used. . The owner cannot be a broker, associate, salesperson, or any person in the business of selling or renting dwellings. Mrs. Murphy Exemption: This exemption is typically called the "Mrs. Murphy Exemption," based on a hypothetical elderly widow, Mrs. Murphy, who wants to rent part of her home but may want to specifically pick out her tenants. 👵 The Mrs. Murphy Exemption applies on a federal level to every state in the country. EXAMPLE: If there was a fourplex (four units) where the owner lived in one of the units, the owner is allowed to turn down potential tenants with children. Although that would normally be discrimination under the law, because the owner is exempt, he is permitted to rule out certain groups (although NEVER based on race).

Quiz Level 24 c) Yes. The property manager is steering the tenant on the basis of his disability. Yes. The property manager is steering the tenant on the basis of his disability.

A property manager is showing a possible tenant around an apartment complex. The manager says, "I really don't think you can manage the stairs with that cane. Let's stick to just properties on the first floor, ok?" Is this discriminatory? a) In some states, but not all, this would be a discriminatory action. b) As long as the property manager has good intent, this cannot be construed as discriminatory. c) Yes. The property manager is steering the tenant on the basis of his disability. d) No. The property manager is trying to find the best housing for the tenant's needs.

d) The property manager is refusing to rent to Bob due to Bob's disability. This violates the Fair Housing Act. The property manager is refusing to rent to Bob due to Bob's disability. This violates the Fair Housing Act.

A property manager is talking to Bob, who wants to rent an apartment. Bob mentions that he is autistic. The property manager thinks that dealing with an autistic individual would be too much trouble. He directs Bob to another complex, saying that the complex is better suited to Bob's "needs." a) The property manager is refusing to rent to Bob due to Bob's disability. This violates ECOA. b) Disability is not covered under the Fair Housing Act, so the property manager is within his rights to deny Bob housing. c) The property manager is refusing to rent to Bob due to Bob's disability. This violates RESPA. d) The property manager is refusing to rent to Bob due to Bob's disability. This violates the Fair Housing Act.

Acceptable Questions

According to ECOA, a lender may only ask questions that are relevant to an individual's financial standing. This means that while asking if someone is divorced is inappropriate, asking if someone must pay alimony is acceptable. To get a better sense of the types of questions that ARE acceptable, let's check out what's NOT allowed: . 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; however, the lender 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.

Chapter 1: Fair Housing Acts

After completing this chapter, you will be able to: . Discuss the history of fair housing legislation and explain its effects on real estate . Explain the Fair Housing Act of 1968 . Explain the Georgia Fair Housing Act of 1988 Why It Matters: Fair housing is all about, you guessed it, fairness. Historically, certain groups have been unfairly denied opportunities, based on race, religion, sex, disability, and other categories. Maybe you've faced some kind of prejudice yourself. Fair housing acts are in place so that everyone has an equal shot at housing. No discrimination allowed! In this chapter, you'll learn the ins and outs of these acts, and get a good sense of their prohibitions. Key Terms: . Civil Rights Act of 1866 . Fair Housing Act of 1968 . discrimination . familial status

Chapter 2: Fair Lending Acts

After completing this chapter, you will be able to: . Discuss the history of fair lending legislation and explain its effects on real estate. Why It Matters: Fair lending legislation is an important subcategory of fair housing legislation. It's so important that I'm giving it its very own chapter! Basically, fair lending acts make sure that lending and credit practices don't discriminate. You've heard of many of these acts before, but the difference is that in this chapter, we're focusing specifically on those elements which outlaw discrimination. It's a different lens to familiar material. Key Term: . marital status

Chapter 4: Fair Housing Exemptions

After completing this chapter, you will be able to: . Explain exemptions under the Fair Housing Act, illustrating knowledge of the parameters and ramifications. Why It Matters: It seems a little weird to think about exemptions to the Fair Housing Act, but there are a few of them that agents need to be aware of. Let's go over what these are so you can be prepared when you face this type of transaction.

Chapter 3: Fair Housing Court Cases

After completing this chapter, you will be able to: . Explain the impact of pivotal fair housing court cases. Why It Matters: Many of the pivotal moments that led to (eventual) positive changes to housing discrimination legislation centered around race. We'll take a look at some key court cases that changed the way the country looked at discriminatory practices.

Familial Status

As for familial status, the federal Fair Housing Act protects families who have children under 18. This protection also covers pregnant women and people in the process of obtaining legal custody of a child. So even if a landlord doesn't want children living in their building, they cannot legally refuse to rent to families with children. Note: There is an exemption for housing for older adults. We'll get to that in a bit. Non-Biological Parents Count: Families with children are protected even if the children aren't living with their biological parents. So, children can live with a: . Biological parent . Step-parent . Foster parent . Grandparent . Any other adult who has legal custody of the child Marital Status Doesn't Matter: Also, it doesn't matter if the adult members of the family are married, divorced, single, widowed, or separated. It doesn't make a difference! A single mother with one child is offered the same protections as a married couple with five children. 18+ and No More Protections: To maintain a protected status, a child must be under 18 years old. EXAMPLE: If a couple is on the hunt for an apartment they will share with their 18-year-old son, they are NOT protected. It doesn't even matter if their son is still in high school.

Facts of a feather a) race

Black. a) race b) disability c) religion d) national origin

Color

Color is a classification based on skin color. It is defined by the courts and the federal government as pigmentation, complexion, skin shade, or tone. Skin color can be, but is not necessarily, a characteristic of race. For instance, a light-skinned Black* person and a dark-skinned Black person are of the same race, but different color. EXAMPLE: A dark-skinned Black employee claims that her light-skinned manager routinely makes disparaging remarks about her skin color. undefined Note: You may wonder why we choose to capitalize "Black" in this course. We have paid careful attention to the linguists, academics, and activists on this topic, and we've decided to adopt their stance that when talking about a culture, group of people, or ethnicity, the name should be capitalized. So, relying on this same group of scholars, we think that "Black" communicates a sense of ethnic cohesion, like "Italian" or "Japanese." While American whites can refer to themselves as, say, Irish-American or Jewish, Black people often cannot make that connection because of slavery's devastations of familial, communal, and national connections. For that reason, we make the choice to capitalize "Black," but not "white," when referring to these racial categories.

Quiz Level 24 c) Both concerned only federally funded properties. Both concerned only federally funded properties.

Compare Executive Order 11063 and the Civil Rights Act of 1964. a) While Executive Order 11063 made punishment for redlining much stricter, the Civil Rights Act of 1964 forbade housing segregation. b) While Executive Order 11063 affected privately owned properties, the Civil Rights Act of 1964 affected publicly funded properties. c) Both concerned only federally funded properties. d) Both prohibited discrimination in lending practices.

Disability

Disability means a mental or physical impairment that substantially limits one or more of a person's major life activities. Examples include blindness, deafness, mobility impairment, cognitive impairment, mental illness, HIV/AIDS, cancer, and alcoholism. More on disability later in the level!

Fair Housing Prohibitions: Part 5 of 6

Discriminating in Advertising: Advertising can NEVER express* discrimination or preference towards a protected class. EXAMPLE: A landlord advertises a rental and says "No Hispanic tenants!" *Exception: It is permissible to advertise "no children" to senior citizen communities. More on that later. Threatening and Interfering: The Fair Housing Act makes it illegal to threaten, coerce, intimidate, or interfere with anyone exercising a fair housing right or assisting others who exercise the right. EXAMPLE: A property manager tries to steer a would-be tenant to a certain floor. The tenant pushes back. The property manager then "jokes" that they are going to tell their other manager-friends not to rent to the tenant for being so "picky." The property manager is interfering (with his hilarious joke) with the prospect's right to fair housing.

Lender Scenarios

Fair lending laws may seem a little complicated. To get a better sense of its implications, let's examine some case studies. Nay, some Ace Studies. 🔎 Scenario 1: A lender asks a loan applicant how much child support she, the applicant, is receiving, although she has stated that she doesn't intend to use the money to qualify for the loan. Is this legal? Answer: No! That ain't legal! Under ECOA, a lender may only ask about child support if the applicant intends to use that money to qualify for the loan. This means that the borrower would have to mention that she receives child support and would like it to be considered. If she doesn't, then this information about her personal life is not relevant to the loan application process. Scenario 2: A lender asks about the credit of a loan applicant's husband, who is a party to the loan application. Is this legal? Answer: It's legal! If an applicant's spouse is named as a party to the loan application, the lender may ask about them. The lender is still required to submit any credit reporting information in the name of each individual. For example, if the loan is granted and later paid in full, that fact must be reflected on each spouse's credit report. Scenario 3: Jim is 92 years old. (He doesn't look a day over 90!) He is applying for a 30-year mortgage. Jim has good income, almost no debt, and his credit is excellent. (Do yo thang, Jim!) The lender forces Jim to purchase life insurance to cover the loan. Is this legal? Answer: It's illegal! The lender cannot ask Jim to purchase life insurance unless they ask ALL of their borrowers to purchase life insurance. Otherwise, that would be age discrimination, and age is a protected class for lenders under the rules of ECOA.

Quiz Level 24 c) It prohibited discrimination in housing based on race or color. It prohibited discrimination in housing based on race or color. Later court cases have used this Act to rule that it is ALWAYS illegal to discriminate in housing on the basis of race or color.

How did the Civil Rights Act of 1866 affect real estate? a) It allowed Black men to purchase property. b) It decreed that "separate but equal" was permitted in housing. c) It prohibited discrimination in housing based on race or color. d) It prohibited discrimination in federally funded housing based on race, color, and religion.

Quiz Level 24 a) All citizens have the same right as white citizens to inherit, purchase, lease, sell, hold, and convey property. In Jones v. Mayer, the court said that all citizens, "Shall have the same right, in every State and Territory, as is enjoyed by white citizens thereof to inherit, purchase, lease, sell, hold, and convey real and personal property."

In the case of Jones v. Mayer, the court ruled that: a) All citizens have the same right as white citizens to inherit, purchase, lease, sell, hold, and convey property. b) Someone who wants to sell their house may only do so to someone of their own race. c) Schools that are "separate but equal" are constitutional. d) Only white citizens could purchase property, but all citizens could rent property.

Exemptions Are Not For License Holders

In the case of dwellings themselves, the Fair Housing Act does not cover all transactions. There are four general exemptions under which a dwelling is exempt from the federal Fair Housing Act. In most states, though, these exemptions do not apply if: . A real estate license holder is involved in the transaction. . One of the parties is otherwise involved in the business of selling or renting. License holders should be aware that their participation in the process may negate the exemption. The Business of Selling and Renting: A person is to be considered in the business of selling or renting if they are licensed as an agent or a broker, obviously. They are also part of the "biz" if: . That person has within the preceding 12 months participated as principal in three or more transactions involving the sale or rental of any dwelling or any interest therein. . That person has within the preceding 12 months participated as agent, other than in the sale of their own personal residence, in providing sales or rental facilities or sales or rental services in two or more transactions involving the sale or rental of any dwelling or any interest therein. . That person is the owner of any dwelling that is designed for or intended for occupancy by or occupied by five or more families.

Plessy v. Ferguson, 1896

In the nineteenth century, state laws that established separate schools for children of each race were common. Segregation was extended to encompass most public and semi-public facilities, including railroad cars. In 1892, a Black man named Homer Plessy (who had light enough skin to pass for a white man), sat in a white compartment of a train. He was arrested and charged with violating the state law. Separate But Equal Upheld: Plessy's lawyer argued that the law requiring separate but equal accommodations was unconstitutional. When Judge John H. Ferguson ruled against him, Plessy took things to the State Supreme Court. In Plessy v. Ferguson, a 7-1 vote from the Supreme Court decided that "separate but equal" separation of the races was legal as long as Black and white facilities were equal to each other. You can probably imagine how this affected housing and real estate, as this court case essentially gave the green light to housing segregation.

Level 24: Fair Housing

In this level, you'll learn all about fair housing laws and what role they play in real estate. Objectives: By the end of this level, you will be able to: . Describe important federal legislation regulating fair housing and explain the impacts each decision has had on the real estate industry. . Identify and describe the purpose and major provisions of state regulations relating to fair housing issues in Georgia. . Identify protected classes and discriminatory practices as well as the exemptions to fair housing laws. . Explain the responsibility of brokers and salespersons in practice, and identify best practices to ensure compliance and reduce liability. . Identify fair housing violations, describe the procedures for reporting, and the penalties associated with violations. Overview: This level is approximately four hours long, which is the amount of time it takes to drive to my Aunt Gertie's house! Come with us next time. She'll make you cupcakes. There are nine chapters: Chapter 1: Fair Housing Acts. Chapter 2: Fair Lending Acts. Chapter 3: Fair Housing Court Cases. Chapter 4: Fair Housing Exemptions. Chapter 5: Federal Disability Law. Chapter 6: Steering, Blockbusting, and Redlining. Chapter 7: Advertising. Chapter 8: Complaints, Enforcement, and Penalties. Chapter 9: Responsibilities and Scenarios.

Facts of a feather c) religion

Jewish. a) race b) disability c) religion d) national origin

Fair Housing Prohibitions: Part 1 of 6

Let's begin! Refusing to Rent or Sell Housing: If an agent refuses to work with someone on the basis of any of the protected categories, that's a no-no. EXAMPLE: An agent won't work with a Black woman because of her race. Making Housing Unavailable: An agent cannot make housing unavailable. This is similar to the previous prohibition, but can be different. EXAMPLE: An agent refuses to show women units in Apartment Complex A, but does show them units in Apartment Complex B. Here, the agent isn't completely refusing to rent or sell property, but they are still making housing unavailable. Refusing to Negotiate for Housing: Backing out of negotiations, refusing to see a deal through, etc. is not allowed on the basis of protected categories. EXAMPLE: An agent, Danielle, is involved in a transaction with Phillip. Danielle eventually learns that Phillip is Jewish. Danielle stops negotiating with Phillip because she's an anti-Semite. This is ding ding ding illegal.

Exemption #1: Single-Family Residences Sold or Rented by Owner

Let's get into the exemptions. First up: The sale or rental of a single-family residence is not bound by the Act, provided that: . The property owner does not own or own any interest in more than three single-family residences at one time. . In cases where the owner is not the most recent resident of the property being sold, that owner is only granted one exempt sale in any 24-month period. . No discriminatory advertising is used. . The owner cannot be a broker, associate, salesperson, or any person in the business of selling or renting dwellings.

Buchanan v. Warley, 1917

Let's look at another case! Zoning Ordinances: The city of Louisville, Kentucky had in place an ordinance prohibiting Blacks from living on a block where the majority of residents were white. In 1915, Louisville resident Charles H. Buchanan was selling his house. William Warley, who was Black, made him an offer to buy it. The house was located in a predominately white neighborhood, where eight of the 10 houses were owned by white people. Thus, Warley was legally not allowed to live on the block, since the majority of residents were white. White Dude Says Buy My House: However, Buchanan accepted Warley's offer. Warley tried to be like, "Hey, I can't buy your house because of the law!" But Buchanan sued to force him to complete the transaction, saying that the ordinance itself was unconstitutional. Racially Based Zoning Is Illegal: The Supreme Court agreed with Buchanan, ruling that the ordinance interfered with individuals' rights of property and was therefore unconstitutional.

Review Time!

Let's make sure you've got these pivotal lawsuits, dates, and court cases straight. . Plessy v. Ferguson, 1896 established that "separate but equal" separation of the races was constitutional. . Buchanan v. Warley, 1917 established that racially based zoning was unconstitutional. . Shelly v. Kraemer, 1948 established that the enforcement of racially restrictive covenants was unconstitutional. . Brown v. Board of Education, 1954 established that "separate but equal" was unconstitutional. . Jones v. Mayer, 1968 established that all racial discrimination in housing was unconstitutional.

Race

Many of the protected categories may seem self-explanatory, but I want to make sure you understand what each entails. So, what is race? This is actually a very complicated question. For our purposes, think of race as a system of categorizing groups of people according to physical characteristics, such as skin color, hair texture, eye shape, or color. The U.S Supreme Court has interpreted race generously and allows the definition to include those who share a common history, language, culture, or ancestry. Racial Categories: The U.S. Census Bureau has five categories for race: . White. . Black or African American. . American Indian or Alaska Native. . Asian. . Native Hawaiian or other Pacific Islander.

Fair Housing Prohibitions: Part 3 of 6

Misrepresenting Property Availability or Sales Terms An agent cannot be untruthful about the availability of property. EXAMPLE: An agent tells an unmarried couple with children that Neighborhood 1 is fresh out of properties. The agent brings them to Neighborhood 2 instead. However, Neighborhood 1 actually has plenty of houses. The agent, though, thinks Neighborhood 1 has "strong family values" and doesn't want the couple to settle there. (This is an example of steering! More on that later.) Denying or Restricting Access to an MLS An agent cannot deny access to the MLS to another agent on the basis of their membership in a protected category. EXAMPLE: An agent is bigoted towards Muslims. He refuses to give a Muslim colleague access to the local multiple listing service. Discriminating in Brokering or Appraising: Just like with renting and selling, there cannot be discrimination in brokering and appraising. EXAMPLE: An appraiser thinks that a cognitively impaired person would not be savvy enough to be aware of reasonable charges for an appraisal service and overcharges them.

Quiz Level 24 b) It doesn't matter if discrimination is intentional or not. Monique can be prosecuted for discrimination. It doesn't matter if discrimination is intentional or not. Monique can be prosecuted for discrimination.

Monique, an agent, is a light-skinned Black woman. She is showing homes to Ashley, who has darker skin. Monique, who means this as a compliment, says, "You're really pretty for a dark-skinned gal!" Ashley is sick of comments like this and complains to Monique's boss. What is TRUE? a) Color is not protected under the federal Fair Housing Act, so Monique cannot be prosecuted for discrimination. b) It doesn't matter if discrimination is intentional or not. Monique can be prosecuted for discrimination. c) This is most obviously gender discrimination, not race discrimination. Monique will be prosecuted for sexual harassment. d) Because Monique meant it as a compliment, she cannot be prosecuted for discrimination.

Marital Status

Most of these categories should look familiar. However, there's a new kid on the block. Marital status refers to whether a person is married, single, divorced, or widowed. A lender cannot discriminate against someone because they are married, in a domestic partnership, divorced, getting divorced, getting a marriage annulled, separated, widowed, or any other marital status. EXAMPLE: . A bank refuses to lend money to a couple because they have chosen to enter a domestic partnership instead of a marriage. . A bank imposes different terms or conditions on a loan because a married couple is separated. Not the Same as Familial Status: Keep these clear! Familial status concerns those who are in "the family way," whether that means being pregnant or having biological, foster, or adopted kids. Marital status concerns whether or not a person is married.

Fair Housing Act of 1968

Our familiar friend! Remember, among its many prohibitions, the Fair Housing Act prohibits discrimination in the making or purchasing of loans or providing other financial assistance, based on its protected classes. So, what could lending discrimination look like? EXAMPLE: . A lender refuses to make mortgage loans to Black people. . A bank requires that women, but not men, provide a co-signer for a loan. . A lender imposes higher interest rates on Hispanic people. . A bank steers Native Americans towards bad mortgage loans. Anytime, Anywhere: Lending discrimination can occur whether purchasing OR refinancing a home. It can occur at any step of the lending process: . Marketing of mortgage loan products . Mortgage loan transactions . Terms and conditions of the loan . Appraisal of a home . Loan servicing Warning Signs of Lending Discrimination: Lending discrimination is most often imposed upon members of a certain race or nationality or upon women. Some clues that this is happening are: . Unnecessary closing costs . Inflated broker or lender fees . Unnecessary recording fees . Excessive prepayment penalties . Changing mortgage loan terms at closing without the consent of the borrower Appraisal of a Home: Be aware of properties that are undervalued because of the race or nationality of either the borrower or the other residents in the surrounding neighborhood. Servicing of a Mortgage Loan: Be aware of collection or foreclosure practices applied more harshly because of the race or nationality of either the borrower or the other residents in the surrounding neighborhood.

Real Estate Settlement Procedures Act of 1974

Recall that the Real Estate Settlement Procedures Act (RESPA) was created in 1974 as a way to regulate the lending process around federally related loans. RESPA has some regulations which work as fair housing protections. Loan Estimate and Disclosure Form: For example, RESPA requires lenders to issue the Loan Estimate and Disclosure Form (previously called the Good Faith Estimate, or GFE) of total settlement costs within three days of receiving a loan application. This form provides information that borrowers can use to make sure that they are getting the best deal on the purchase of their home. By asking for estimates from several companies, borrowers can compare estimates and choose the lender who offers the lowest costs. Through this comparison, borrowers can spot any lenders that are trying to take advantage of them, which is particularly important for members of protected classes.

Fair Housing Prohibitions: Part 6 of 6

Refusing Reasonable Modifications: A landlord cannot refuse a modification to their property if it is deemed reasonable. A modification is usually an alteration of a structure. EXAMPLE: A landlord refuses to install a wheelchair ramp for a disabled tenant, even though it would not pose an undue financial burden. Refusing Reasonable Accommodations Similarly, a landlord must not deny reasonable accommodations. Accommodations are typically alterations to policies. EXAMPLE: A landlord owns an apartment complex with a no-pet policy. He refuses to allow a woman with mobility impairments to have a service animal. Failing to Design Accessible Buildings: Buildings must be accessible. In other words, they must be navigable and useable by all tenants. EXAMPLE: A building is inaccessible because all doors were not wide enough to permit a wheelchair.

Fair Housing Prohibitions: Part 2 of 6

Refusing to Rent or Sell After a Bona Fide Offer: An agent cannot refuse to rent or sell to a person of a protected class after a bona fide offer has been made. Bona fide means that an offer is a genuine, authentic offer. EXAMPLE: A Black man submits an offer to an agent. The agent refuses to transmit this offer to his seller-client based on the Black man's race. Providing Unequal Services or Facilities: An agent must provide equal services. That means that they need to give 100% to everyone who steps into their office. They don't get to give or deny that effort based on an individual's membership in a protected class. Essentially, if it is customary for an agent to do X for their customers or clients, and they DON'T do X for someone, that is suspect. "Unequal services" is pretty broad, so I'll give you lots of examples of violations. EXAMPLES: . Insulting or ignoring a Black customer, while treating a white customer courteously and attentively . Failing to use one's best efforts to conclude a transaction with a deaf man, while giving A+ effort to a hearing woman . Offering a property on less favorable terms to an autistic man than to a neurotypical man . Offering a female prospect different advice from that offered to a male prospect . Showing a Hispanic buyer homes slowly (in the hopes that they will not be able to act on desired properties immediately), while white buyers get shown properties right away. Setting Unequal Terms, Conditions, or Privileges: This is similar to the previous prohibition, but has to do with specifics of a deal, rather than property or services. EXAMPLE: A landlord charges higher rents and deposits to families with children.

Religion

Religion is a system of beliefs and practices relating to the divine. Buddhism, Christianity, Islam, Judaism - you get the picture. Keep in mind that people of the same religion may congregate to the same community or neighborhoods. And that's okay! People always have the right to choose where they want to live, based on their ability to pay. However, real estate agents cannot steer people into, or out of, neighborhoods based on religion (or other protected classes). The number of cases filed since 1968 alleging religious discrimination is pretty small in comparison to some of the other prohibited classes, such as race or national origin. Overt and Covert Discrimination: This prohibition covers instances of overt discrimination against members of a particular religion. It also covers less direct actions, such as zoning ordinances designed to limit the use of private homes as places of worship.

Exemption #3: Dwellings Belonging to Religious Organizations or Private Clubs

Religious Organizations: Nothing in the law prohibits a religious organization from limiting the sale, rental, or occupancy of a dwelling that it owns or operates for other than commercial purposes to persons of the same religion. The law allows a religious group to sell or rent to people only of their same beliefs. The deed restrictions specifically only let in certain people with similar beliefs to live in the area. Keep in mind that this would have to be a real estate development that has been established to include people of that particular religion and to exclude others who do not have the same beliefs. It couldn't be, on the other hand, a whole side of town that is full of people of a particular religion. Private Clubs: Private clubs may show preference to club members under similar circumstances.

All Them Federal Acts: A Summary

Remember, the most important federal act to know for the exam is the Fair Housing Act. Make sure you know those prohibitions inside and out. Here's a summary of all of the federal acts that relate to fair housing. Note: You probably won't be tested on what protected class became protected when, but it is neat to see the progressive expansion of these classes. Ready for another game of Facts of a Feather?

Executive Order 11063 of 1962

Since 1866, there have been a number of laws and amendments to laws that attempt to improve conditions for minorities. In 1962, President John F. Kennedy issued Executive Order 11063, which prohibited discrimination in the selling or leasing of property owned or funded by the federal government, including those properties relying upon Veterans Administration loans and Federal Housing Administration loans. The protected classes were race, color, creed, and national origin. Because only a few transactions were done with federal involvement in those days, the law had few results. 😔

Georgia Fair Housing Act of 1988 🍑

So far in this chapter, we've been talking about federal law. Well, guess what? Georgia has its very own fair housing act! Passed in 1988, the Georgia Fair Housing Act is also known as the Georgia Fair Housing Law. Very Similar to the Fair Housing Act: The Georgia Fair Housing Act closely mirrors the federal act. That means: . same protected classes (race, color, religion, sex, disability, familial status, and national origin). . same exemptions. . similar prohibitions (substantively the same, with somewhat different wording and emphases). Enforcement: The Georgia Commission on Equal Opportunity (GCEO), through its Fair Housing Division, enforces the Georgia Fair Housing Act. Cities with Other Protected Classes: Some cities in Georgia have protected classes in addition to the federal protected classes. For example, Atlanta protects on the basis of the federal seven as well as age, domestic relationship status, parental status, and gender identity or sexual orientation. Learn what local fair housing ordinances are relevant to your area!

Fair Housing Prohibitions: Part 4 of 6

Steering: Steering is directly or indirectly channeling customers towards or away from homes, neighborhoods, or even sections of a building (like a certain floor). EXAMPLE: An agent shows Black prospects only historically Black neighborhoods, rather than homes in a range of neighborhoods. Blockbusting: Blockbusting is a form of persuading owners to sell or rent their properties out of fear of a race or class. EXAMPLE: A real estate broker tells a white family that once Black tenants move into the neighborhood, housing prices will tumble. The broker convinces the white residents to sell their home at a low price. He then sells that home to Black tenants at a much higher price. Redlining: The Fair Housing Act prohibits discrimination in the making or purchasing of loans or providing other financial assistance. One important area of discriminatory lending is redlining, which is refusing to make loans in a certain area regardless of a person's qualifications. EXAMPLE: A lender refuses to make loans in a neighborhood because it is known as a refuge for immigrants.

Quiz Level 24 d) "separate but equal". The 1896 case of Plessy v. Ferguson upheld racial segregation through the doctrine of "separate but equal."

The 1896 case of Plessy v. Ferguson upheld racial segregation through the doctrine of: a) Plessy v. Ferguson did not uphold racial segregation. b) "equal and separate". c) "don't ask, don't tell". d) "separate but equal".

Filtering Down

The CRA can help limit the processes of filtering down. This is a real estate concept in which people in higher income brackets move out of their higher-priced homes into newly constructed high-priced homes in a different area. The idea is that the homes that they leave behind can then be occupied by people in a lower income bracket. The people in the lower income bracket then leave behind their former homes, which can then be moved into by people in an even lower income bracket, and so on. As long as there is new construction, the theory is that people can continue to upgrade their housing. How this plays out is complicated, though. When construction is limited, the opportunity to filter down is limited. And often times the neighborhoods in which the rich move out see a lack of investment and development. How the CRA Helps: The CRA is valuable because it requires lenders to reevaluate a community's credit needs periodically. This helps a lender extend credit to lower-income buyers in filtered-down neighborhoods. Without factoring in a community's changing credit needs, fewer loans would be granted in the area and the people who would normally buy in the area would be excluded.

Civil Rights Act of 1964

The Civil Rights Act of 1964 was landmark federal legislation that prohibited discrimination on the basis of race, color, religion, sex, and national origin. Enacted on July 2, 1964, this Act granted equal access to employment, schools, and public spaces. In the real estate world, this Act fell short when it came to housing, as it only forbade discrimination in publicly funded housing projects. You may have noticed that both Executive Order 11063 and the Civil Rights Act of 1964 concerned only federally funded properties.

Community Reinvestment Act of 1977

The Community Reinvestment Act, or CRA, was passed to reduce discriminatory credit practices in low-income areas. As such, the CRA helps stop redlining, as it aims to equalize lending practices. Community Development: The CRA also requires lenders to assist their local communities by participating in community development projects. In addition, the Act says that lenders need to submit an annual statement including public comments about their attempts to help low-income communities. Banks Should Serve Everyone: The CRA extended and clarified the long-standing expectation that banks will serve the convenience and needs of their local communities. And Credit for All: The CRA seeks to enable all parts of a community — no matter if it's a wealthy community or a poor one — to have access to credit. Before the CRA existed, there were shortages of credit in low-income areas, even though financial institutions were taking deposits there.

Equal Credit Opportunity Act of 1974

The Equal Credit Opportunity Act, or ECOA, aims to prevent credit discrimination. Prohibited Actions: 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 Protected Classes: It is illegal for lenders to discriminate on the basis of: . Race or color . Religion . National origin . Sex . Marital status . Receipt of income from any public assistance program . The exercise in good faith of their rights under the Consumer Credit Protection Act . Age A Note on Age: You can be too young to get a mortgage loan, but you can't be too old! Someone in their 80's can get a 30-year loan if they qualify for it.

Quiz Level 24 d) a retail spot in a mall. The Fair Housing Act does not cover non-dwelling buildings. It would apply to a mixed development (retail/commercial and residential) as part of the space would be considered a dwelling.

The Fair Housing Act would NOT cover which of the following property sales? a) a residential property. b) a condominium sale. c) an undeveloped tract of land that will be used for a mixed development. d) a retail spot in a mall.

Fair Housing Act of 1968

The federal Fair Housing Act is the most important fair housing act to know for the licensing exam. This Act says it is unlawful to refuse to sell, rent to, or negotiate with any person because of that person's inclusion in a protected class. Discrimination: In other words, the Fair Housing Act is all about preventing housing discrimination. Discrimination is the unjust or prejudicial treatment of different categories of people, especially on the grounds of race, sex, religion, disability, or other classifications. The goal is a unitary housing market where a person's background does not restrict their access to good, fair housing. HUD: The United States Department of Housing and Urban Development (HUD) administers and enforces the federal Fair Housing Act. More on HUD later in the level.

Sex

The government defines sex as the physical characteristics that make a person male or female. This protected class was added in 1974. In recent years, the courts' focus on sex as a protected class has been to challenge sexual harassment in housing. Women, particularly those who are poor and with limited housing options, often have little recourse but to tolerate sexual harassment or risk having their families and themselves evicted. Enforcement is often aimed at landlords who create an untenable living situation by demanding sexual favors or by creating a sexually hostile environment. Sexual Orientation and Gender Identity: Note that the federal Fair Housing Act does NOT include sexual orientation or gender identity as a protected class. However, some court cases have found that discrimination under sexual orientation or gender identity can be prosecuted under the Fair Housing Act under one of its seven protected classes. For example, if a landlord sexually harasses a woman who is transgender, he may have violated the Fair Housing Act's prohibition against sex discrimination. Encouragingly, 21 states (plus Washington, D.C.) and more than 200 cities, towns, and counties offer LGBTQIA+ protections. The National Association of Realtors (NAR) includes sexual orientation and gender identity as protected classes, in addition to the classes protected under the Fair Housing Act. Thus, if you are in residential brokerage and a Realtor (which many of you are), you need to be aware of these additional protected classes. Furthermore, 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. This is known as HUD's Equal Access Rule. Women and Lending: Pricing discrimination in mortgage lending may also adversely affect women, particularly women of color.

Who Isn't Protected?

There are two groups that a real estate license holder DOES have the legal right to turn down in certain situations: . People too young to enter a legal contract (that is, younger than 18). . People who have a poor credit score, don't have the means to obtain a home loan, or otherwise have an inability to pay. So, being under the age of 18 or having a poor financial history are both legal reasons to turn down a housing application. How about criminal record? Criminal Record: It IS acceptable to exclude on the basis of criminal record. However, it's a little complicated. In 2016, the Supreme Court ruled that using criminal records in making housing decisions can be discriminatory, as minorities are over-represented in the criminal justice system. HUD now urges housing providers to exercise caution when implementing criminal history policies or practices used to make housing decisions. The National Association of Realtors® has several suggestions for complying with HUD's guideline, including: . Do not exclude based on criminal records alone. . Do not treat comparable criminal records differently when one party belongs to a protected class. . Do not use a criminal record as a pretext for discrimination.

Shelly v. Kraemer, 1948

Time for another case! Restrictive Covenants...: The Kraemers were a white couple who owned a residence in Missouri governed by a restrictive covenant. This covenant prevented Black people from owning property in the subdivision. When the Shellys, a Black couple, moved in, the Kraemers went to court to enforce the restrictive covenant. ...Can't Enforce 'Em: In 1948, the Supreme Court heard the case. They decided that while racially based restrictive covenants were not themselves unconstitutional (they argued that private parties may voluntarily agree to them), enforcement of the covenants was.

Quiz Level 24 b) the Fair Housing Act. Title VIII of the Civil Rights Act of 1968 is also known as the Fair Housing Act.

Title VIII of the Civil Rights Act of 1968 is also known as: a) the Housing and Urban Development Act. b) the Fair Housing Act. c) the Americans with Disabilities Act. d) the Equal Opportunity and Credit Act.

Residential Transactions Only

We learned about what the Fair Housing Act protects and prohibits, but what things aren't covered? The Fair Housing Act defines a dwelling as, "any building, structure, or portion of a building that is occupied as - or designed or intended for occupancy as - a residence by one or more families." The definition also includes any vacant land offered for sale or lease for the construction of a building, structure, or portion of a building that is intended to be occupied as a residence. This definition is important, as the Fair Housing Act does NOT cover non-dwelling buildings. Therefore, the laws apply differently to commercial transactions, unless those transactions include property that would be properly defined as a dwelling. Of course, whether commercial or residential, real estate license holders should know that discrimination is never a good idea.

Quiz Level 24 d) sexual orientation. The federal Fair Housing Act does NOT include sexual orientation or gender identity as a protected class. However, some court cases have found that discrimination under sexual orientation or gender identity can be prosecuted under the Fair Housing Act under one of its protected classes. Plus, sexual orientation and gender identity are protected in some states, cities, and towns, as well as under NAR and HUD's Equal Access Rule.

What is NOT a protected class under the Fair Housing Act? a) national origin. b) race. c) color. d) sexual orientation.

Quiz Level 24 d) HMDA requires lenders to disclose specific lending information, including each borrower's race, ethnicity, gender, and age. HMDA requires lenders to disclose specific lending information, including each borrower's race, ethnicity, gender, and age.

What is one function of HMDA? a) HMDA is a special provision of the Fair Housing Act. b) HMDA limits which questions a lender can and cannot ask. c) HMDA requires lenders to issue the Loan Estimate and Disclosure Form. d) HMDA requires lenders to disclose specific lending information, including each borrower's race, ethnicity, gender, and age.

Quiz Level 24 d) Racial segregation in schools is inherently unequal and always unconstitutional. Brown v. Board of Education ruled that racial segregation in schools is "inherently unequal" and always unconstitutional.

What was the ruling in Brown v. Board of Education? a) Racial segregation in schools is inherently unequal but not unconstitutional. b) Racial segregation in schools is never unconstitutional and could legally continue. c) Racial segregation in schools is sometimes unconstitutional. d) Racial segregation in schools is inherently unequal and always unconstitutional.

Quiz Level 24 a) a property owned by a real estate agent. Property owned by real estate agents is not exempt from the Fair Housing Act. The other housing situations are exempt.

Which is NOT one of the four exemptions of the Fair Housing Act? a) a property owned by a real estate agent. b) rental of rooms or units in owner-occupied property. c) housing for senior citizens. d) single-family residences sold by owner.

Quiz Level 24 c) An agent learns that a buyer has AIDS. He tells him that certain properties aren't available, even though they are. Sexual orientation, age (in terms of minor status), and weight are not protected categories under the Act. Disability, is, however. Remember, AIDS is classified as a disability. It is a violation of the Fair Housing Act to misrepresent the availability of property based on a protected class.

Which of the below is a violation of the federal Fair Housing Act? a) A property manager tells a 16-year-old girl that he cannot rent to her because she is a minor. b) An agent makes snide comments about an applicant's weight. c) An agent learns that a buyer has AIDS. He tells him that certain properties aren't available, even though they are. d) An agent asks her gay colleague to show a lesbian couple around because she "thinks they'll have more in common."

The Takeaway

While Plessy v. Ferguson established practices that worsened housing discrimination, the other court cases in this chapter established practices that aimed to lessen housing discrimination. Along with the legislation covered in Chapters 1 and 2, these court cases are a crucial part of the story of fair housing in this country. In Chapter 3, you learned: ✅ To explain the impact of pivotal fair housing court cases. I'm so proud of you! Now, are you ready to learn about fair housing exemptions? I bet you are!

Brown v. Board of Education, 1954

You've likely heard of one of the most famous court cases in the United States, Brown v. Board of Education (1954), in which the Supreme Court ruled unanimously that racial segregation of children in public schools violated the Equal Protection Clause of the 14th Amendment. Demands for School Integration: After Plessy v. Ferguson set the precedent for separate but equal, lawyers from the National Association for the Advancement of Colored People (NAACP) began in the 1950s to bring class action lawsuits on behalf of Black schoolchildren, seeking court orders to let Black students attend white public schools. One such class action suit was filed against the Topeka, Kansas school board by Oliver Brown, who was the parent of one of the children who was denied access to one of Topeka's white schools. Brown said that this racial segregation violated the Constitution's Equal Protection Clause. Topeka's Black and white schools were not, in fact, equal to each other. When the federal district court dismissed his claim, Brown brought his case to the Supreme Court. Separate but Equal Overturned: In a unanimous decision, written by Chief Justice Earl Warren, the court said that racial segregation of children in public schools violated the Equal Protection Clause of the 14th Amendment. The court added that separating children by race creates inferiority complexes that could negatively affect a child's ability to learn. Even if the facilities were indeed equal between the Black and white schools, racial segregation in schools is "inherently unequal" and always unconstitutional. By overturning the "separate but equal" doctrine, the Court's decision set the legal precedent that would be used to overturn laws enforcing segregation in other public facilities including, you guessed it, housing.

Facts of a Feather b) Civil Rights Act of 1866

made it ALWAYS illegal to discriminate in housing on the basis of race or color, with no exceptions. a) Fair Housing Act b) Civil Rights Act of 1866 c) Civil Rights Act of 1964 d) Executive Order 11063

Facts of a Feather a) Fair Housing Act

prohibited discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. a) Fair Housing Act b) Civil Rights Act of 1866 c) Civil Rights Act of 1964 d) Executive Order 11063

Facts of a Feather c) Civil Rights Act of 1964

prohibited discrimination in publicly funded housing projects. a) Fair Housing Act b) Civil Rights Act of 1866 c) Civil Rights Act of 1964 d) Executive Order 11063

Facts of a Feather d) Executive Order 11063

prohibited discrimination in the selling or leasing of property owned or funded by the federal government, including those relying upon VA loans and FHA loans. a) Fair Housing Act b) Civil Rights Act of 1866 c) Civil Rights Act of 1964 d) Executive Order 11063

Level Assessment a) Fair Housing Act.

prohibits discrimination in the making or purchasing of loans or providing other financial assistance, based on familial status, color, race, national origin, sex, disability, and religion. a) Fair Housing Act. b) Home Mortgage Disclosure Act. c) Real Estate Settlement Procedures Act. d) Community Reinvestment Act.

Level Assessment b) Home Mortgage Disclosure Act.

requires lenders to ask for race, ethnicity, gender, and age. a) Fair Housing Act. b) Home Mortgage Disclosure Act. c) Real Estate Settlement Procedures Act. d) Community Reinvestment Act.

Facts of a Feather d) Community Reinvestment Act.

requires lenders to assist their local communities by participating in community development projects. a) Fair Housing Act. b) Home Mortgage Disclosure Act. c) Real Estate Settlement Procedures Act. d) Community Reinvestment Act.

Level Assessment a) Fair Housing Act.

the most important fair housing Act to know for the licensing exam! a) Fair Housing Act. b) Home Mortgage Disclosure Act. c) Real Estate Settlement Procedures Act. d) Community Reinvestment Act.

Facts of a Feather c) Real Estate Settlement Procedures Act.

uses the GFE to help borrowers to spot predatory lenders. a) Fair Housing Act. b) Home Mortgage Disclosure Act. c) Real Estate Settlement Procedures Act. d) Community Reinvestment Act.

Facts of a feather a) race

white. a) race b) disability c) religion d) national origin