Chapter 4: Fair Housing

Ace your homework & exams now with Quizwiz!

Reverse discrimination

"Benign" discrimination intended to correct past wrongs

The fine for a first violation of the Federal Fair Housing Act could be as much as

$19,787

The seller who requests prohibited discrimination in the showing of a home should be told

-"As your agent I have a duty to warn you that such discrimination could land you in real trouble." -"I am not allowed to obey such instructions." -"If you persist, I'll have to refuse to list your property."

The following provisions govern rentals in NJ

-A landlord cannot refuse rent to a one bedroom apartment to 2 members of the same sex if the same apartment would be available to members of the opposite sex who were equally qualified. It is illegal to subject a tenant to sexual harassment -A lease may not provide that it will become null and void on a birth of a child -A facility that does not admit pets must permit a guide or service dog -A person with AIDS is considered a person with a disability under NJ laws and is entitled to protection against discrimination in house

The Civil Rights Act of 1866 is unique because the act

-Covers only the areas of race and color -Provides no exceptions -Requires a federal court suit by the complainant

A good precaution against even unintentional discrimination is

-Detailed record keeping on each customer -Use of a standard financial interview form -Routine follow up phone calls

How does a broker go about complying with the laws and making that policy known?

-HUD regulations suggest that a public statement in the form of an approved fair housing poster be displayed by a broker in any place of business where housing is offered for sale or rent (including model homes) -HUD offers guidelines for nondiscriminatory language and illustrations for use in real estate advertising -The NAR suggests that a broker's position can be emphasized and problems can be avoided by the prominent display of a sign stating that it is against company policy as well as state and federal laws to offer any information on the racial, ethnic or religious composition of a neighborhood or to place restrictions on listing, showing, or providing information on availability of homes for any of these reasons

HUD's advertising guidelines

-No discriminatory limitation/preference may be expressed -No religious preference/limitation -No explicit preference based on sex -No exclusions or limitations based on family size or nature -No preference or limitation based on family size or nature -People should be clearly representative and nonexclusive

Protected classes for housing under NJ law include

-Race -Creed (religion) -Color -National origin -Ancestry -Nationality -Martial or domestic partnership or civil union status -Sex -Gender identity or expression -Disability -Affectional or sexual orientation -Family status -Source of lawful income or source of lawful rent payment

Discriminatory actions include

-Refusing to deal with an individual or a specific group -Changing any terms of a real estate or loan transaction -Changing the services offered for any individual or group -Making statements or advertisements that indicate discriminatory restrictions -Attempting to make a dwelling unavailable to any person or group because of membership in a protected class

The law against discrimination forbids

-Refusing to sell, rent, lease, assign, or sublease as a means of discrimination -For licensees, refusing to offer property or to negotiate transactions as a means of discrimination, or lying about the availability of property -Changing the terms of a real estate transaction or offering special facilities or services to any person or group as a means of discrimination -Being involved with any expression, direct or indirect, of any limitation based on discrimination. This includes statements, advertisements, publications, signs, rent applications, purchase offers, and record of inquiries

Federal regulations regarding equal opportunity in housing are principally contained in 2 laws

-The Civil Rights Act of 1866-prohibits all racial or color discrimination -Federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968)- prohibits discrimination on the basis of race, color, religion, sex, national origin, disability, or familial status in the sale or rental of residential property

Under federal law, families with children may be refused rental or purchase in buildings where occupancy is reserved exclusive for those aged at least

62

Mount Laurel I

A lawsuit that was filed but the NAACP against the town of Mount Laurel, NJ, for illegal discrimination against low income and moderate income persons through the use of exclusionary zoning -In 1975, the court ruled that the poor may not be excluded from residential areas

Mount Laurel II

A second lawsuit filed by the NAACP against Mount Laurel, NJ, resulted in the courts providing specific guidelines for all developing communities, and said that all municipalities have an obligation to provide a range of housing

Each listing property owner must be given

A summary of the Law Against Discrimination

Department of Housing and Urban Development (HUD)

Administers programs that provide housing and community development assistance -The Department also works to ensure fair and equal housing opportunity for all -Penalties can be imposed ranging from $19,787 for a first violation to $49,467 for a second violation within five years and $98,935 for further violations within seven years

New Jersey's law applies to

All real estate property

Blockbusting

Also known as "panic peddling", means inducing homeowners to sell by making representations regarding the entry or prospective entry of minority persons into the neighborhood -The blockbuster frightens homeowners into selling and makes a profit by listing the homes or buying them cheaply and selling them at considerably higher prices to minority people -The Federal Fair Housing Law prohibits this practice

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

A court found a landlord guilty of illegal discrimination and ordered him to rent his next available apartment to the person who was unfairly hurt. The court order is an example of

An injunction

At the time a property is listed, the homeowner must be given a copy of the

Attorney General's Memorandum on discrimination

The court cases known as Mount Laurel I and Mount Laurel II mandate

Availability of low income and middle income housing in housing developments

"I hear they're moving in; there foes the neighborhood. Better list with me today!" is an example of

Blockbusting

All real estate offices and rental offices must

Conspicuously display an anti-discrimination poster

The goal of legislators who have enacted fair housing laws and regulations is to

Create a single, unbiased housing market-one in which every financially qualified home seeker has the opportunity to buy an home in the area they choose

NAR and HUD have developed a

Declaration of Fair Housing Principles for REALTORS® to use to promote fair housing to the public within the firm.

The only defense against an accusation of illegal discrimination is proof that it

Didn't occur

The Federal Fair Housing Amendments of 1988 added which of the following as new protected classes?

Disability and familial status

New Jersey's law does not contain federal exceptions for

Homeowners selling their own homes and no exceptions apply when a broker is involved

Any person who willfully interferes with the activities or who violates an order of the attorney general or the Division on Civil Rights

Is guilty of a misdemeanor and is subject to a fine of us to $500 and/or imprisonment for up to one year

Failure to display the anti-discrimination poster

Is punishable by a fine of $100 or more

The only exception to NJ's law applies to rentals

It allows rooms, apartments, or flats in certain types of housing to be restricted to members of one sex; religious-based organizations to discriminate on the basis of religion; and an owner-occupant to discriminate except for race in the rental of a duplex or an up/down two family dwelling

Landlords may not refuse prospective tenants solely on the basis of

Lawful source of income

Owners of multiple dwellings with 25 or more units must

Make annual reports on racial status of their tenants

The director may award reimbursement for

Medical expenses; award for pain, suffering, and humiliation; and fines up to $10,000 for a first offense, $25,000 for a second offense, and up to $50,000 for subsequent offenses

Complaints brought under the New Jersey Law Against Discrimination

Must be filed within 180 days after the alleged discriminatory action occurs

Refusal to rent to someone because they receive public assistance violates

New Jersey statutes

New Jersey's Law Against Discrimination

New Jersey's law governing discrimination in real estate transactions

A policy of never renting to persons with prison records violates

No law

Multiple dwelling reporting

Owners of developments containing 25 or more apartments must file an annual report with the state Division and Civil Rights. The report covers racial composition of the tenants and methods of advertising and handling inquiries

The New Jersey Law Against Discrimination

Permits an owner-occupant of a one or two family residence to deny housing to a tenant based on the applicant's age

Civil Rights Act of 1866

Prohibits any type of discrimination based on race and color -The Supreme Court broadened the definition of race, implying that it may also apply to ethnic or religious groups -No exceptions are allowed to this federal law "prohibits all racial discrimination, private or public, in the sale and rental of property"

A mortgage company makes it a practice not to lend money to potential homeowners attempting to purchase property located in predominantly black neighborhoods. This practice is known as

Redlining

State statute also prohibits

Refusal to rent to families with children under 18 years old

Redlining

Refusing to make mortgage loans or issue insurance policies in specific geographic areas without regard to the economic qualifications of the applicant -Often contribute to the deterioration of older, transitional neighborhoods, is frequently based on racial grounds, rather than on any individual financial objections to the applicant

Which of the following acts is permitted under the Federal Fair Housing Act?

Refusing to sell a home to an individual because they have poor credit history

Complaints under the Federal Fair Housing Act may be

Reported to and investigated by the Department of Housing and Urban Development and may be taken to a U.S. district court

Title VIII

Section of federal Civil Rights Act that covers housing

Attorney General's Memorandum

Statement about discrimination everyone listing property must receive

Guiding perspective buyers to a particular area because the agent feels they belong there may lead to

Steering

The act of channeling home seekers to a particular area either to maintain or to change the character of a neighborhood is

Steering

Complaints under the Civil Rights Act of 1866 must be

Taken to a federal court

Jones V. Mayer

The 1968 decision of the U.S. Supreme Court that upheld the Civil Rights Act of 1866 -Jones, an African American, sued Mayer, alleging that Mayer had refused to sell him a home in St. Louis County, Missouri, solely on the basis of race

Refusing an apartment to a couple because they are unmarried violates

The Law Against Discrimination

Code for Equal Opportunity

The National Association of REALTORS® has adopted a Code for Equal Opportunity. The code sets forth suggested standards of conduct for REALTORS® so that they may affirmatively pledge to offer equal service to all persons

After John Wilson lists a summer home with salesperson Sharon Sikes, he informs her of his general dislike of a particular ethnic minority group. Sikes later shows the home to 2 prospective buyers, one of whom is a member of this group, and both make an offer. When Wilson contacts her again, she does not present him with the lower offer, which was made by the member of the minority. Sikes has violated

The New Jersey Real Estate License Law and the Law of Agency

Steering

The channeling of home seekers either to or away from particular areas on the basis of race, religion, country of origin, or other protected class -May be done unintentionally by agents who are not aware of their own subconscious assumptions

The Commission requires any brokerage soliciting listings from more than 3 homeowners in a block during a single month whether by mail, telephone, or door to door canvassing

To keep permanent records of the activity for at least a year -The records must include names and addresses of those solicited, name of the licensee involved, and date of the activity, and they are to be available to the Commission

Testers

Undercover volunteers who want to see whether all customers and clients are being treated with the same cordiality and are being offered the same free choice of housing within a given price range

Participation in the HUD/NAR Fair Housing Partnership is

Voluntary

HUD/NAR Fair Housing Partnership

Was founded on the principle of focusing attention on achieving fair housing through local community initiatives -The NAR, local REALTORS® associations, and HUD field offices work together to develop fair housing partnerships based on the existing needs of their communities

There is never an exception for race

Whether or not a broker is involved

Complaints brought under the New Jersey Law Against Discrimination must be filed

With the state's attorney general within 180 days after the alleged offense -The attorney general's office investigates prompts and has 45 days to attempt conciliation


Related study sets

Depressive Disorders & Bipolar and Related Disorders

View Set

Chapter 1 - Psychoactive Drugs: Classification & History

View Set

Manufacturing Processes Chapter 21

View Set

Fire inspector set ch 1-12 for state test

View Set

Triangular Trade/Slave Trade (Cultural Exchange pages 11-12)

View Set

303 Hinkle PrepU Chapter 61: Management of Patients with Dermatologic Disorders

View Set

Practice A mental health online ATI

View Set

Medication Calculation Quiz, IV dosage calculation practice test, Dosage Calculation Practice Exam 1, ATI Desired Over Have: Medication Administration, HESI Dosage Calculations Practice Exam, HESI Dosage Calculations Quiz, Med Surg 1 - HESI practice...

View Set

Lesson 9-1, 9-2, 9-3, 9-4, 9-5, 9-6, 9-7

View Set