section 6 chapter 5

There are ____ classes protected under the Minnesota Human Rights Act.

11

As of what year did the Federal Fair Housing Act state you cannot discriminate on the basis of handicap or familial status?

1988

The Fair Housing Amendments Act was adopted in ____.

1988

In order for a senior housing complex to be exempt from the prohibition of discrimination based on familial status, ____ % of the occupants must be 55 years of age or older.

80

The Minnesota Human Rights Act includes the following protected classes EXCEPT:

AGE

what is Puffing?

As a real estate licensee, you should avoid "puffing" (exaggerating features) in your advertising. Puffing does not violate fair housing laws, but you should still avoid making exaggerated claims that are obviously untrue. An example of puffing is, "the best view in the entire neighborhood."

An agent tells neighbors they should sell their houses because Cuban families are starting to move into their area. What type of illegal activity is the agent practicing?

Blockbusting

Failure to display the Equal Housing Opportunity poster at the broker's place of business could be construed as prima facie evidence of ______ by the broker.

DISCRIMINATION

Title VIII was amended in 1988 (effective March 12, 1989) by the Fair Housing Amendments Act, which:

Expanded the coverage of the Fair Housing Act to prohibit discrimination based on disability or on familial status (presence of children under age of 18, and pregnant women) Established new administrative enforcement mechanisms for HUD attorneys to bring actions before administrative law judges on behalf of victims of housing discrimination Revised and expanded Justice Department jurisdiction to bring suit on behalf of victims in Federal district courts

Here is a summary of fair housing law facts that you must remember.

Fair housing laws are based upon the 1866 Act relating to the ownership and rental of real estate. The 1866 Act provides that: "All citizens of the United State shall have the same right, in every State and Territory, as is enjoyed by white citizens thereof to inherit, purchase, sell, hold, and convey real and personal property." In 1968 in Jones vs. Mayer, the US Supreme Court held that the 1866 Act prohibits ALL forms of racial discrimination in real estate, whether committed by government or private parties. Persons suing under the 1866 Act are entitled to recover actual and punitive damages, and their attorney's fees and costs. The Federal Fair Housing Act states you cannot discriminate on the basis of the following protected classes (memorize these): Race Religion Color National Origin Sex Handicap (added in 1988) Familial Status (added in 1988)

What do errors and omissions insurance policies often exclude?

Fair housing penalties and losses

True or False: The Federal Department of Justice (DOJ) enforces federal laws against housing discrimination.

False (The Department of Housing and Urban Development enforces the federal laws against housing discrimination.)

True or False: There are 13 classes protected by the Minnesota Human Rights Act.

False (The Minnesota Human Rights Act protects 11 classes.)

Accessibility

In connection with prohibitions on discrimination against individuals with disabilities, the Fair Housing Act contains design and construction accessibility provisions for certain new multi-family dwellings developed for first occupancy on or after March 13, 1991.

what is Steering?

It is illegal to restrict, or attempt to restrict, through your words or actions where a person should look for properties, based on discriminatory factors.

A federal court can impose a(n) ______ amount of monetary damages on a landlord found guilty of discrimination.

unlimited

What Type of Housing Is Covered? The Fair Housing Act covers most housing, but in some circumstances, the Fair Housing Act exempts:

Owner-occupied buildings with no more than four units Example: If Lessor Liam has a rental property with up to four units in the building, and he is living in one of them, Liam can discriminate in any way he chooses. However, if he isn't living in one of the units, he can't. Remember no more than four and owner-occupied. Single-family housing sold or rented without the use of a broker Example: If Lessor Liam is working with Agent Erika to lease his one unit, single family dwelling, he cannot discriminate against the protected classes. If he is handling the rental on his own, he can.Homeowner Marvin, if selling for-sale-by-owner, can discriminate in any way he sees fit. However if he is working with a licensee such as Agent Erika, of ABC Realty, he cannot discriminate. Housing operated by organizations and private clubs that limit occupancy to members Example: If an alumni club had housing associated with its private club, they could discriminate against anyone who is not a member of that club.

Title VIII of the Civil Rights Act of 1968 (Fair Housing Act) prohibits discrimination in the sale, rental, and financing of dwellings based on:

Race Color Religion Sex National origin

The following Advertising Guidelines are excerpted from a HUD memorandum issued in January 1995:

Race, color, national origin Real estate advertisements should state no discriminatory preference or limitation on account of race, color, or national origin. Use of words describing the housing, the current or potential residents, or the neighbors or neighborhood in racial or ethnic terms (i.e., white family home, no Irish) will create liability. However, advertisements which are neutral will not create liability. Thus, complaints over use of phrases such as master bedroom, rare find, or desirable neighborhood should not be filed. Religion Advertisements should not contain an explicit preference, limitation or discrimination on account of religion (i.e., no Jews, Christian home). Advertisements which use the legal name of an entity which contains a religious reference (for example, Roselawn Catholic Home), or those which contain a religious symbol, (such as a cross), standing alone, may indicate a religious preference. However, if such an advertisement includes a disclaimer (such as the statement "This Home does not discriminate on the basis of race, color, religion, national origin, sex, handicap or familial status") it will not violate the Act. Sex Advertisements for single family dwellings or separate units in a multi-family dwelling should contain no explicit preference, limitation or discrimination based on sex. Use of the term master bedroom does not constitute a violation of either the sex discrimination provisions or the race discrimination provisions. Terms such as "mother-in-law suite" and "bachelor apartment" are commonly used as physical descriptions of housing units and do not violate the Act. Handicap Real estate advertisements should not contain explicit exclusions, limitations, or other indications of discrimination based on handicap (i.e., no wheelchairs). Advertisements containing descriptions of properties (great view, fourth-floor walk-up, walk-in closets), services or facilities (jogging trails), or neighborhoods (walk to bus-stop) do not violate the Act. Advertisements describing the conduct required of residents ("non-smoking", "sober") do not violate the Act. Advertisements containing descriptions of accessibility features are lawful (wheelchair ramp) Familial status Advertisements may not state an explicit preference, limitation or discrimination based on familial status. Advertisements may not contain limitations on the number or ages of children, or state a preference for adults, couples or singles. Advertisements describing the properties (two bedroom, cozy, family room), services and facilities (no bicycles allowed) or neighborhoods (quiet streets) are not facially discriminatory and do not violate the Act.

Title VIII prohibits five different types of discrimination:

Refusals to sell or rent, or otherwise making unavailable a dwelling because of a prohibited classification (previously listed 7 classes); discrimination in the terms Example: A seller who has his home listed with ABC Realty cannot refuse to sell to a female. Sex is a protected class. Just like the seller cannot refuse to sell to someone of a particular race, color, religion, national origin, handicap status, or familial status (with or without children.) If a seller ever tells you that he will not sell to someone within this list of protected classes, walk away as quickly as you can from the listing. It is illegal to refuse to sell or rent to anyone in this protected list. Conditions or privileges of sale or rental, or in the provision of services in connection therewith Use of advertising that expresses a preference for persons of a particular race, color, religion, sex, national origin, handicap, or familial status Example: Listing Agent Erika, with ABC Realty cannot advertise a home and suggest that "it is perfect for those without children." Lessor Liam cannot promote his available units by stating "works great for a disabled person." Representations that a dwelling is not available for sale or rent, when in fact the dwelling is available Example: Lessor Liam cannot turn a person from South Africa away, by telling him the unit is not available, when it really is. Liam cannot say no to one protected class while saying yes to another. Attempts to induce a person to sell or rent a dwelling by referring to the prospective entry of persons of a particular race, color, sex, religion, national origin, handicap, or familial status. This illegal practice is called: blockbusting.

it is illegal for anyone to:

Threaten, coerce, intimidate, or interfere with anyone exercising a fair housing right or assisting others who exercise that right Advertise or make any statement that indicates a limitation or preference based on race, color, national origin, religion, sex, familial status, or handicap (this prohibition against discriminatory advertising applies to single-family and owner-occupied housing that is otherwise exempt from the Fair Housing Act) Deny additional protection if there is a disability

Fair housing penalties and losses are often excluded by ______ and ______ insurance policies.

errors/omissions

It is called ______ when an agent tells existing homeowners they should sell because a certain ethnic group is moving into the neighborhood and it will cause property values to decline.

blockbusting

If a person owns ____ or more homes, and he is selling one of them without the aid of a real estate licensee, he is bound by the prohibition against discriminatory advertising

four

Federal housing discrimination laws are ______ by the Department of Housing and Urban Development (HUD).

enforced

If a tenant becomes disabled, he/she may build accessories to accommodate a handicap at his/her ______ expense.

own

Sexual orientation is a(n) ______ class under the Minnesota Human Rights Act.

protected

It is called _______ when a real estate agent over-exaggerates the selling points of a property.

puffing

Both the 1866 Civil Rights Act and the 1968 Federal Fair Housing Act protect which of the following classifications:

race

The Jones vs. Mayer case made it illegal to discriminate in a real estate transaction because of ______, ______, ______, ______, or ______.

race/color/religion/sex/national origin

It is called ______ when mortgage companies deny or charge more for their services to residents in a certain area without regard to their financial qualifications.

redlining

It is called ______ when a real estate agent influences a buyer to purchase a home in a neighborhood where a majority of the residents have the same racial background as the buyer.

sterring

True or False: Chronic drug use is not covered in the fair housing disability laws.

true