Unit 5: Fair Housing Laws
To avoid being found guilty of discrimination violations, brokers should, among other things
(1) know the fair housing laws and stay current with changes to those laws, (2) display the HUD fair housing poster, (3) deliver equal treatment and service to everyone, and (4) carefully document all activities and conversations with all clients and customers.
A Catholic-owned hospital wants to sell a piece of property that it owns but does not want to sell it for the development of family-oriented rental properties. Is that a fair housing violation?
No, because the hospital is owned by the Catholic church, it is exempt from fair housing law.
Under the federal Fair Housing Act of 1968, which is permitted?
Restricting the rental of lodgings owned by a private club based on membership in the club
An agent managing a property for owner, asks take on the job of leasing the units as well the agent would be
The agent will be acting as a special agent for owner in leasing the units in the house.
Home Mortgage Disclosure Act
This requires banks to record/report data on home lending in order to ID possible discriminatory patterns. PROHIBITS REDLINING
Housing and Community Development Act of 1974
added SEX to the list of protected classes ALSO INCLUDES National Origin Religion Color Race
Civil Rights Act of 1866
guaranteed equal rights: Race and Color
Complaints of discrimination brought under the Civil Rights Act of 1866 must be taken directly to
taken to a federal court. 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.
An aggrieved person who believes illegal discrimination has occurred may *file a complaint* within _________________ of the alleged discriminatory act?
1 year
Which family is NOT protected under the familial status provisions of the Fair Housing Act?
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
What is a "substantial equivalency" fair housing law?
A state or local law that is basically the same as the federal fair housing law
Which requires equal access in employment, government activities, public accommodations, commercial facilities, transportation, and telecommunications?
Americans with Disabilities Act (ADA)
Federal Fair Housing Act of 1968
An act prohibiting discrimination in the sale or rental of housing on the basis of race, color, religion or national origin sex, handicap and familial status.
If a homeseller specifically instructs his listing agent not to show his home to lawyers, is the listing agent obligated to comply?
Because lawyers are not a protected class, the request is lawful.
Why is the 1954 court decision Brown v. Topeka Board of Education consider a benchmark ruling in fair housing?
Brown v. Topeka Board of Education was the first decision that overturned the "separate but equal" doctrine.
Which prohibits, without exception, all discrimination based on race in any real estate transaction?
Civil Rights Act of 1866
Steering
Encouraging buyers to limit search in certain neighborhoods bc of race or religion The practice by which realtors steered African American families to certain neighborhoods and white families to others.
Blockbusting
Encouraging owners to sell their properties because minorities are moving into a neighborhood
1988 Fair Housing Amendments Act
Extended civil rights protection to families with children and to individuals with physical and mental handicaps. Disability Familial Status
examples of what would be would be permitted under HUD's advertising guidelines
Family room Master bedroom Quiet neighborhood Mother-in-law suite NOT PERMITTED: Near great Catholic school or Retiree's dream house
Rather than outlaw specific words and phrases from the advertising of real estate, the federal court has established what test to determine whether an advertisement is discriminatory?
How an ordinary reader would interpret the ad
If potential buyer is turned down for a loan, can the buyer get a full explanation for why?
If the borrower asks in writing within 60 days of rejection for a detailed report that includes the reasons for rejection, under the Equal Credit Opportunity Act, they are entitled to an explanation.
Which court decision is still cited in lawsuits concerning fair housing discrimination?
Jones v. Mayer
Americans with Disabilities Act (ADA)
Legislation passed in 1990 that prohibits discrimination against people with disabilities. Under this Act, discrimination against a disabled person is illegal in employment, transportation, public accommodations, communications and government activities.
Are lenders required by law to attempt to identify borrowers by race, national origin, gender, and ethnicity, and are borrowers required to provide the data?
Lenders are required to ask, but borrowers need not offer the information.
Texas Fair Housing Act
National Origin, Religion,Color,Race Civil Act Right Housing and Community Development Act Fair Housing Amendment Act
Does ECOA apply to all lenders?
No, ECOA applies only persons or institutions that make loans on a regular basis.
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?
No, because 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.
The Civil Rights Act of 1866 is largely credited as Congress's first real attempt to extend the right to own property to all citizens. Did it succeed?
No, because various courts and state legislatures ruled the Act only applied to discrimination by the government, not individuals against other individuals.
If an LGBT homebuyer assertively instructs his contracted buyer agent to "only show me homes in conservative Christian neighborhoods," is the buyer agent obligated to comply?
No, complying would be a violation of fair housing law.
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?
No, it is not discriminatory. (b/c fincial reason)
If a Hispanic applies for an apartment and meets all the landlord's publicized criteria, can that individual still be denied if the landlord would be more comfortable if the Hispanic had a better-paying job?
No, once an applicant has met the stated criteria of the landlord, that individual—regardless of race or national origin—comes under the protection of fair housing law.
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?
No, real estate license holders are not exempt.
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?
No, sex offenders are not protected by fair housing law.
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?
No, she would lose her exemption because the families in her home must live independently of each other.
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?
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.
If a minority individual renting an apartment is charged with the manufacture and distribution of methamphetamine, may the landlord evict the renter?
No, the drug manufacturer cannot be evicted unless he is convicted.
Can a landlord decline to show a wheelchair-bound rental applicant an apartment on an upper floor?
No, the landlord is obligated to show any apartments that are within the price range of the applicant.
If a property owner with fractional interest in a dozen rental units decides to sell his own home without a license holder, is the property owner exempt from fair housing law?
No, the property owner's fractional ownership in other properties would bring him under fair housing law.
regarding fair housing laws best applies now that the agent will be leasing the units for the owner?
None of the exemptions to the Fair Housing Act apply once the special agent takes on the job of leasing the units for owner
What are "paired testers"?
Paired testers are actors, for instance a white couple and a black couple, who are given similar (but fake) identities and financial data, who attempt to rent units from the same landlord.
Which court decision essentially undermined the Civil Rights Act of 1866?
Plessy v. Ferguson "separate but equal," essentially legalizing segregation in everything from schools to housing
Which people are protected under the handicap classification of the Fair Housing Act?
Recovered and current mental patients
A complaint of discrimination brought under the Texas Fair Housing Act can be filed with the U.S. Department of Housing and Urban Development or with the
Texas Workforce Commission Civil Rights Division (TWCCRD).
After the widespread race riots in the United States after 1968, what did the federally appointed National Advisory Commission on Civil Disorders determine?
That America was moving toward two separate but unequal societies, one black and one white
Which of the following statements is TRUE regarding the applicability of Federal Fair Housing Act (the Act)?
The Act does not apply to Owner because she lives there and it has only four units.
What tragic event helped spur passage of the Fair Housing Act of 1968?
The assassination of Martin Luther King Jr.
In 1962, President Kennedy issue an executive order (EO 11063) that prohibited discrimination in the sale, rental, or use of all residential property that was owned, operated, or financed by the federal government. What was the impact?
The impact was very small because the executive order lacked an enforcement provision.
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 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.
If a local-level fair housing group wins a fair housing lawsuit against a landlord, who gets the money from the resulting judgment?
The money goes to the fair housing group that brought the lawsuit.
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 state attorney general and the U.S. Justice Department may initiate investigations on their own.
How is punishment for violating the racial aspects of fair housing law different from punishment for violations involving complaints about familial status?
There is no difference in punishment.
In terms of fair housing enforcement in Texas, what do Dallas, Fort Worth, Garland, Corpus Christi, Austin, and San Antonio have in common?
They all have fair housing municipal laws that are substantially the equivalent of the federal fair housing law.
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?
Two years
Single-family or multifamily housing must be made available for sale or rent to families with children
YES landlords cannot restrict the number of occupants or advertise "adults only" with the intent or effect of eliminating families with children. Familial status is 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 for older persons is exempt if it is occupied solely by persons age 62 and older or if 80% of its units are occupied by at least one person age 55 or older
Someone bringing a discrimination complaint may NOT have to prove that the defendant intended to discriminate.
YES, All that must be proved is that the discriminatory act occurred
It is a violation of fair housing laws to refer a buyer or a seller to an agent of the same minority group.
Yes
The Equal Credit Opportunity Act (ECOA) is designed to make credit available to every financially qualified applicant.
Yes 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. All rejected applicants must be notified, in writing and within 30 days, of the basic reasons for denial or termination of credit. Rejected applicants must inquire in writing within 60 days to obtain the specific reasons for denial.
Housing for older persons is exempt from compliance with familial status fair housing legislation if it is occupied solely by persons age 62 and older.
Yes Housing for older persons is exempt if it is occupied solely by persons age 62 and older or if 80% of its units are occupied by at least one person age 55 or older. Otherwise, single or multifamily housing must be made available for sale or rent to families with children.
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?
Yes, FSBO owners must comply with fair housing *advertising law*. (even if no license)
Are all forms of media - including the internet - obligated to follow fair housing advertising law?
Yes, any media that carries real estate advertising is subject to the requirements of fair housing law.
Is it legal to ban medical doctors from living in neighborhoods if the residents object?
Yes, because doctors are not a protected class. (any profession can be band)
Would placing a for-rent advertisement that states "kids OK" represent a violation of the Fair Housing Act?
Yes, because it could be viewed as expressing a preference for families over seniors and single individuals
An agent representing a black family seeks to show a for-sale-by-owner home in which the owner only has one property and has lived in it for more than five years. The FSBO owner turns away the agent because of the family's race. Is that a violation of fair housing law?
Yes, because the family is a protected class
If a real estate license holder decides to sell his one personal residence as a FSBO but refuses to show it to a Muslim refugee family, is he in violation of fair housing law?
Yes, even though acting as a FSBO, no real estate license holder is exempt from fair housing law.
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?
Yes, failing to make repairs in an effort to drive out a tenant is a violation of fair housing law.
If a minority buyer specifically requests to be shown only properties in "white" neighborhoods, is it discriminatory for the sales agent to comply with the request?
Yes, it is discriminatory.
If an undocumented worker asks to be shown a property in a specific neighborhood, would it be discriminatory to refuse?
Yes, it is illegal to discriminate against noncitizens.
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?
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?
Yes, pregnant women are protected under the familial status provisions of the law.
Are Catholics who want to live in Jewish neighborhoods protected by fair housing laws?
Yes, property owners may not be discriminated against on the basis of religion.
handicap
a physical or mental impairment that substantially limits one or more of a person's major life activities, a record of having such an impairment being regarded as having such an impairment.
Mrs. Murphy Exemption
an exemption in federal fair housing laws for an owner-occupied dwelling designed for occupancy by *no more than four families* living *independently* of each other There is no exemption for homes on the National Historic Register. Similarly, there are no exemptions based on the sex or marital status of the owner.
Texas Workforce Commission Civil Rights Division (TWCCRD)
complaint can be filed to if believes illegal discrimination has occurred may file a complaint within one year after the alleged act.
U.S. Department of Housing and Urban Development (HUD)
complaint can be filed to if believes illegal discrimination has occurred may file a complaint within one year after the alleged act.
Texas Work Force Commission
complaint can be reported to if expericaed bias or discrimination
Someone bringing a fair housing discrimination complaint must prove that the defendant
did discriminate, intentionally or unintentionally.
the sale or rental of a single-family home is exempt when the home is owned by an individual who
does not own more than three such homes at one time and when the following conditions exist: (1) a broker, sales agent, or agent is not used; (2) discriminatory advertising is not used; (3) the owner is not living in the dwelling at the time of the transaction or was not the most recent occupant; and (4) only one such sale by an individual is exempt from the law within any 24-month period.
The Fair Housing Act of 1968
extended fair housing laws to cover the majority of housing in the country. With its amendments, it prohibits discrimination in residential housing based on color, race, national origin, religion, gender, familial status, and disability.
In the modern era of fair housing enforcement, what actions, typically against minority buyers, can result in monetary judgments against real estate license holders and brokers?
inconvenience Mental anguish Embarrassment
Who is allowed to send paired testers to apartments to check for fair housing mistreatment?
ndependent nonprofit civic groups interested in enforcing the law Agents of the State of Texas Agents of the federal government
Civil Rights Act of 1964
outlawed discrimination based on race, color, religion, sex, or national origin
HUD has determined that phrases such as "desirable neighborhood," "master bedroom," and "rare find" are
perfectly acceptable words to use in advertising.
owner-occupied dwelling exemption (if living in facility)
permits the owner to make decisions based on sex or familial status, but not on the basis of race. A person subject to the exemption, however, may not advertise for tenants based on discriminatory preferences.
The Civil Rights Act of 1964
prohibits discrimination based on race, color, religion, or national origin in housing that receives federal funding.
Equal Credit Opportunity Act (ECOA)
prohibits discrimination in the extension of credit because of race color religion national origin sex age marital status.
Redlining
refusing to make loans or otherwise denying financial assistance for housing in particular areas
A rarely challenged fair housing exemption is
religious organizations.
Community Reinvestment Act (CRA)
requires to help meet the needs in their communities for low- and moderate-income housing.
In determining whether an advertisement is discriminatory, HUD rules state it will look at three basic things. They are
whether the ad contains discriminatory words and symbols, whether photos only show members of a single race, and whether other considerations condemned under fair housing law are present, such as only showing young single people without families.
