Unit 5
Is it legal to ban medical doctors from living in neighborhoods if the residents object?
The answer is yes, because doctors are not a protected class. However, neighborhoods that ban doctors—or just about any profession—are likely to draw scrutiny of fair housing leaders.
May tenants who are members of a protected class file a fair housing complaint if they believe their landlord is delaying making needed repairs to their unit in an effort to drive them out of the building?
The answer is yes, failing to make repairs in an effort to drive out a tenant is a violation of fair housing law. This can be a difficult case to make, especially if the entire building is in disrepair. But if the tenant can demonstrate that others in the building have received more favorable treatment, a fair housing complaint may be warranted.
If an undocumented worker asks to be shown a property in a specific neighborhood, would it be discriminatory to refuse?
The answer is yes, it is illegal to discriminate against noncitizens. Fair housing law prohibits discrimination on the basis of national origin. It is not illegal for noncitizens to own property in the United States.
It is clearly a violation of the Fair Housing Act to deny an apartment to someone based on their faith, such as being Muslim, but is it illegal to evict them because they have frequent guests who also are Muslim?
The answer is yes, it is illegal to evict someone just because a landlord does not like their guests. Fair housing law protects both tenants and guests on the basis of race, color, and national origin.
Does the Fair Housing Act allow a childless, but pregnant, woman to claim protection under the familial status section of law?
The answer is yes, pregnant women are protected under the familial status provisions of the law. It also would protect anyone who is currently seeking custody of a child under the age of 18.
On certain higher-risk loans, on which lenders typically charge a higher interest rate, lenders are also required to report the spread. What does the term "spread" refer to?
The answer is the spread is the difference between the interest rate given and the interest rate that would have been available for a lower risk loan. The spread is one of the key indicators in whether the borrower has been abused.
In terms of fair housing enforcement in Texas, what do Dallas, Fort Worth, Garland, Corpus Christi, Austin, and San Antonio have in common?
The answer is they all have fair housing municipal laws that are substantially the equivalent of the federal fair housing law. Substantial equivalency means the cities may bring cases against potential violators without going through the federal court system.
A borrower wants to determine a lending institution's participation in low- and moderate-income housing, community development, rehab projects, and in loan programs for small businesses and small farms. Which law requires a report that the borrower can request from the lender?
The answer is Community Reinvestment Act (CRA). The CRA requires a public annual statement containing a definition of the geographical boundaries of its community, an identification of the types of community reinvestment credit offered (such as residential housing loans, housing rehab loans, small-business loans, commercial loans, and consumer loans), and comments from the public about the institution's performance in meeting community needs.
Which requires lenders to report income and ethnicity data of loan applicants, as well as the type of loan applied for, where the property is located, and whether the application was approved, denied, or withdrawn?
The answer is Home Mortgage Disclosure Act (HMDA). The HMDA was passed to stop the process of redlining, in which certain areas of a community were excluded from eligibility for home loans as though red lines were drawn around them. It requires mortgage lenders to collect and report data to assist in identifying possible discriminatory lending practices: the race or ethnicity, sex, and income of mortgage applicants, as well as the type of loan they want, where the property is located by census tract, and whether the application was approved, denied, or withdrawn.
Which court decision is still cited in lawsuits concerning fair housing discrimination?
The answer is Jones v. Mayer. The decision barred all racial discrimination, private as well as public, in the sale or rental of property. The decision was handed down in 1968, more than 100 years after the first Civil Rights Act.
Which court decision essentially undermined the Civil Rights Act of 1866?
The answer is Plessy v. Ferguson. The court decision created the doctrine of "separate but equal," essentially legalizing segregation in everything from schools to housing.
Which family is NOT protected under the familial status provisions of the Fair Housing Act?
The answer is a 55-year-old father, 40-year-old mother, and 17-year-old son who want to purchase a home in an age-restricted adults-only community. Familial status has been defined as one or more individuals (under the age of 18) living with a parent or legal guardian or the designee of such parent or guardian. It also includes a woman who is pregnant and someone who is in the process of securing legal custody of a child under age 18. Housing that is occupied solely by persons age 62 or housing that requires at least 80% of its units to be occupied by at least one person age 55 or older does not have to comply with familial status provisions of fair housing laws.
Complaints of discrimination brought under the Civil Rights Act of 1866 must be taken directly to
The answer is a federal court. Discrimination complaints brought under the Texas Fair Housing Act can be filed with the Texas Workforce Commission Civil Rights Division (TWCCRD) or with the U.S. Department of Housing and Urban Development (HUD) within one year of the alleged discriminatory act.
What is the reasoning MOST lenders gave for "redlining" neighborhoods?
The answer is all of these. Historically, banks did not want to make loans because they believed people of some races were unreliable borrowers—often making that decision on scant evidence. The Home Mortgage Disclosure Act attempts to overcome that prejudice.
Which of these map directions to a real estate development could be considered discriminatory?
The answer is all of these. Noting the proximity to a Catholic school could imply the predominant religion of the community; Upper Crust Country Club could imply a wealthy white community; noting the statute of Tejano hero Toribio Losoya who died defending the Alamo may suggest a community is for Hispanics.
What is the proper response of a listing agent who approaches a potential listing only to find a Confederate flag flying from the front porch?
The answer is ask the seller if the flag represents his racial prejudice and ask that it be removed. Real estate agents are business people, not social engineers. But if the agent feels the flag reflects racist attitudes that will permeate the transaction and result in diminished interest in the property, it might be best to avoid the listing.
If a homeseller specifically instructs his listing agent not to show his home to lawyers, is the listing agent obligated to comply?
The answer is because lawyers are not a protected class, the request is lawful. Thoughtful sales agents should warn, however, they are unlikely to know the profession of every potential buyer and they may want to redirect their attention to making sure the home shows well enough to return top value.
Can the Texas attorney general and the U.S. attorney general begin an investigation of fair housing abuse on their own accord, or must they wait until a formal complaint is made by the public?
The answer is either the state attorney general and the U.S. Justice Department may initiate investigations on their own. They do not need to refer cases to local prosecutors.
Fair-housing-protected classes are established by
The answer is federal, state, and local laws. The federal Fair Housing Act as amended has seven protected classes: race, color, religion, national origin, sex, handicap (disability), and familial status. State and/or local laws may contain additional protected classes.
If a homeseller instructs the listing agent not to show his property to a real estate investor (fearful it could be turned into rental property), must the listing agent comply?
The answer is investors are not a protected class, meaning sales agents are permitted to turn away investors. The seller's motivation is not something the sales agent is required to investigate, but if the seller is fearful his home would be turned into rental units, and those units might be rented minorities or other protected classes, the agent could be looking at a legal issue.
Which phrase, when used in advertising, would be considered unacceptable?
The answer is no children under six years of age. Advertisements, notices, or statements may not indicate a preference, limitation, or discrimination with regard to any fair-housing-protected classification. Descriptions of properties and symbols or terms relating to religious holidays are acceptable.
If police have been called to an apartment because of domestic violence against a single mother by a former husband, may the leasing agent evict the woman?
The answer is no, because evicting the woman could violate the familial status clause of fair housing law and could expose her to additional harm. It is a fair housing violation (family status) to terminate the lease of a family unless extraordinary circumstances present themselves.
If a landlord receives a rental application online for an available apartment but determines in the course of an in-person interview that the applicant is a follower of Islam, may the landlord introduce extraordinary fees and deposits in an effort to persuade the applicant to go somewhere else?
The answer is no, charging additional fees and deposits to force an individual to go elsewhere is considered a violation of fair housing law. The intent of the landlord—to keep an eligible applicant out—would be clear in a court case.
Would it be discriminatory for a buyer agent to decline to accompany a client to an open house for a home in a neighborhood the agent knows the buyer cannot afford?
The answer is no, it is not discriminatory. Open houses tend to be open to the public, but buyer agents are within their rights to marshal their time in endeavors that are likely to produce business. There typically would be no bar to the browsing buyer walking through the home.
If property owners attempt to evict families from rental units because of mischief, noise, or vandalism, are they likely to run afoul of fair housing laws?
The answer is no, property owners are allowed to evict families on the basis of behavior of children. Fair housing law does not require property owners to abandon basic business practices, such as maintaining the upkeep of their property and evicting those who do not comply with reasonable rules.
If a real estate license holder decides to rent out three units in her home to different families, does the agent qualify for the Mrs. Murphy exemption?
The answer is no, real estate license holders are not exempt. The State of Texas holds its license holders to a higher standard in every aspect of real estate, including their own dealings.
Is it a violation of fair housing law to refuse to show a sex offender a home in a neighborhood of single-family homes with children?
The answer is no, sex offenders are not protected by fair housing law. They may be discriminated against. There may, however, be other laws that allow them to live wherever they'd like, within certain restrictions.
Can Mrs. Murphy escape the rules of fair housing law if she rents one part of her home to a family, another part of the home to the elderly grandparents of the family, and another unit to the adult, single-parent child of the family?
The answer is no, she would lose her exemption because the families in her home must live independently of each other. It would be difficult for the families to prove they do not interact in familial activities.
If a FSBO owner, who only owns one property, advertises it for sale in a newspaper but then refuses to show it to a disabled veteran, is the FSBO owner in violation of fair housing law?
The answer is no, the FSBO is not guilty of discrimination. As a property owner not using a real estate agent, the owner is exempt from fair housing law in this case.
Federal fair housing laws permit which of the following?
The answer is none of these. Blockbusting is inducing homeowners to sell below market prices by claiming that members of a certain race, color, religion, sex, national origin, disability, or familial status are entering the area. Steering, also known as channeling, is directing homeseekers or renters to particular areas to maintain the homogeneity of the area, thus steering them away from other areas. Steering promotes segregation.
Are all forms of media - including the internet - obligated to follow fair housing advertising law?
The answer is yes, any media that carries real estate advertising is subject to the requirements of fair housing law. While free speech is generally protected across all media, advertising is not protected and must follow federal guidelines.
What notice are all publishers—whether on paper or electronic—required to carry if they are advertising real estate for sale?
The answer is that the publication will not knowingly accept any advertising that violates fair housing law. Publishers, like real estate brokers, can be held liable for advertising that tends to eliminate any protected class.
A lender must judge an applicant only on the basis of income, net worth, job stability, and credit rating as required by
The answer is the Equal Credit Opportunity Act (ECOA). The ECOA prohibits lenders and others who grant or arrange credit to consumers from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant is of legal age), or dependence on public assistance. Credit applicants must be judged only by criteria based on income, net worth, job stability, and credit rating.
What key additions (protections) were added to fair housing laws in 1988?
The answer is the addition of families with children and people with disabilities to the law. Before the law, many rental and condominium properties did not want children in their units because of noise, and permitting disabled individuals would mean costly additions such as wheelchair ramps and railings in bathrooms.
A dwindling number of Texas communities have laws on the books that appear to be discriminatory—such as forbidding blacks or Hispanics to own property. Can those laws be enforced, even though they appear to contradict fair housing law?
The answer is the laws are obsolete and no longer enforceable. Texas statutes now state that deed restrictions are no longer enforceable by state courts, meaning discriminatory language in local ordinances is moot.
The seller of one single-family home would NOT be in violation of the Fair Housing Act even if
The answer is the owner discriminated on the basis of religion. The Fair Housing Act of 1968, as amended, makes it unlawful to discriminate against protected classes on the basis of race, color, religion, national origin, sex, handicap (disability), and familial status when selling or leasing residential property. A few exemptions are provided for special circumstances. However, no exemptions are permitted for racial discrimination and no exemptions apply when a real estate license holder is involved in a transaction. The sale or rental of a single-family home is exempted when the home is owned by an individual who does not own more than three such homes at one time and when a real estate agent is not used, and discriminatory advertising is not used, the owner was not the most recent occupant, and the owner has not made another such sale within the previous 24 months. The exemption will apply to one sale or rental within a two-year period, unless the owner was the most recent occupant.
How long after a discriminatory action does an aggrieved party in a discrimination dispute have to bring a private enforcement action in state or federal district court?
The answer is two years. The private lawsuit can be filed even though an administrative complaint is filed with the Texas Workforce Commission Civil Rights Division (TWCCRD). However, if a conciliation agreement is entered on the complaint or if a hearing commences before an ALJ, the private lawsuit must be terminated.
Texas real estate license holders may be fined and lose their license for advertising in a discriminatory way, but what about private homeowners who are for sale by owners?
The answer is yes, FSBO owners must comply with fair housing advertising law. The owner may be exempt from other portions of fair housing law by being a FSBO, but the Court's ruling in United States vs. Hunter found that FSBO owners may not advertise their intent to discriminate.