Unit 17
Conciliation
The resolution of a fair housing complaint by HUD by obtaining assurance that the person against whom the complaint was filed (the respondent) will remedy any violation that may have occurred and will take steps to eliminate and or prevent discriminatory practices in the future.
Pennsylvania Human Relations Act (PHRA)
The state law that prohibits discrimination in the sale or rental of real estate, both housing and commercial properties, on the basis of race, color, religion, ancestry, national origin, sex, familial status, disability, or use of guide or support animal due to a disability.
Disparate impact refers to policies that do not have the effect of discriminating. True or False?
The statement is false. Disparate impact refers to policies or procedures that appear to be neutral but which negatively affects people in the protected classes.
Megan's Law
Federal legislation that promotes the establishment of state registration systems to maintain residential information on every person who kidnaps children, commits sexual crimes against children, or commits sexually violent crimes.
The fine for a first violation of the federal Fair Housing Act could be as much as A) $1,000. B) $16,000. C) $500. D) $10,000.
The answer is $16,000. An administrative law judge (ALJ) may impose monetary penalties for violations of the federal Fair Housing Act. The penalty for a first offense can be a fine of up to $16,000.
Under federal law, families with children may be refused rental or purchase in a building where occupancy is reserved exclusively for those whose age is at LEAST A) 60. B) 40. C) 65. D) 62.
The answer is 62. Housing intended solely for persons age 62 or older is exempt from protections afforded to families with children; occupancy may be restricted to persons over the age of 62.
If a mortgage lender discriminates against a loan applicant on the basis of marital status, what law is violated? A) Civil Rights Act of 1866 B) ECOA C) Fair Housing Act D) ADA
The answer is ECOA. The Equal Credit Opportunity Act (ECOA) prohibits discrimination during the lending process based on race, color, religion, national origin, marital status, age, and receipt of public assistance.
Fair Housing Act
The federal law that prohibits discrimination in housing based on race, color, religion, sex, disability, familial status, and national origin.
Equal Credit Opportunity Act (ECOA)
The federal law that prohibits discrimination in the extension of credit because of race, color, religion, national origin, sex, age, or marital status.
Redlining
The illegal practice of a lending institution denying loans or restricting their numbers for certain areas of a community.
Americans With Disabilities Act (ADA)
A federal law passed in 1990 to open doors, both figuratively and literally, for people with disabilities to become part of the economic and social mainstream of society. The law mandates equal access to employment and goods and services. Title I prohibits discriminatory employment practices. Title III requires anyone providing goods and services to the public to make them accessible by removing architectural and communications barriers and, if that is not readily achievable, to provide reasonable accommodations to people with disabilities.
The Housing for Older Persons Act (HOPA)
A federal law that repealed the requirement that 55-and-older housing have "significant facilities and services" designed for seniors. HOPA still requires that at least 80% of occupied units have one person age 55 or older living there
Civil Rights Act Of 1866
An act that prohibits racial discrimination in the sale and rental of housing.
Disparate Impact
Policies or procedures that appear to be neutral but which negatively affect people in the protected classes.
Jones v. Mayer
Racial discrimination is prohibited in the sale or rental of publicly or privately held property, whether facilitated by a real estate agent or sold or rented by the owner. Where race is involved, there are no exceptions.
After a broker takes a listing agreement for a residence, the owner specifies that he will not sell his home to any Asian family. Which action should the broker take? A) Advertise the property exclusively in Asian-language newspapers. B) Require that the owner sign a separate legal document stating the additional instruction as an amendment to the listing agreement. C) Abide by the principal's directions, despite the fact that they conflict with the fair housing laws. D) Explain to the owner that the instruction violates federal law and that the broker cannot comply with it.
The answer is explain to the owner that the instruction violates federal law and that the broker cannot comply with it. A broker who accepts a listing with the understanding that illegal discrimination will be practiced is in violation of the federal Fair Housing Act. Both the broker and the owner could be prosecuted. The broker must explain that the instruction violates the law and that the broker cannot accept the listing under that condition.
A minority real estate broker's practice of offering a special discount to minority clients is A) not important. B) legal but ill advised. C) satisfactory. D) illegal.
The answer is illegal. Differentiating in terms, conditions, or services because a person is a member of a protected class is a violation of the federal Fair Housing Act. A broker who is a member of a minority group who offers special discounts to clients who are also minorities is violating the law.
What duty, if any, do real estate licensees have regarding the Megan's Law registry? A) Must advise buyers to search the registry before making an offer B) Obligated to report known predators to the MLS C) Must search the registry when taking a listing D) No duty
The answer is no duty. Pennsylvania real estate licensees are not required to research or disclose information about sex offenders, although buyer agents often provide their buyer clients the Megan's Law registry website.
Which of the following is an illegal reason for a lending institution to refuse to make a residential real estate loan in a particular area? A) Questionable economic situation of the applicant B) Deteriorated condition of the premises C) Physical location of the property D) Applicant not being of legal age
The answer is physical location of the property. Redlining is the illegal practice of refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than the economic qualifications of the application.
Which statement describes the Supreme Court's decision in Jones v. Alfred H. Mayer Company? A) Sales by individual residential homeowners are exempted, provided the owners do not use brokers. B) Laws against discrimination apply only to federally related transactions. C) Racial discrimination is prohibited by any party in the sale or rental of real estate. D) Persons with disabilities are a protected class.
The answer is racial discrimination is prohibited by any party in the sale or rental of real estate. In the 1968 Supreme Court case of Jones v. Alfred H. Mayer Company, the court upheld the Civil Rights Act of 1866 and clearly established that racial discrimination is illegal without exception.
Which act is permitted under the federal Fair Housing Act? A) Refusing to finance a home for an individual who has a poor credit history B) Altering the terms of a loan because the borrower is a member of a minority group C) Advertising property for sale only to a specific nationality group D) Telling an individual that an apartment has been rented when in fact it has not
The answer is refusing to finance a home for an individual who has a poor credit history. A person may legally be denied a loan because of poor credit history; there is no violation of either the federal Fair Housing Act or the Equal Credit Opportunity Act.
What agency, if any, in Pennsylvania is charged with maintaining the registry of sexual offenders? A) Real Estate Commission B) State Police C) Department of Human Services D) No one
The answer is state police. Pennsylvania's Megan's Law requires the State Police to create and maintain the registry of sexual offenders, sexually violent deviate children, and sexually violent predators.
The following ad appeared in the newspaper: "For Sale: 4 BR brick home; Redwood School District; excellent Elm Street location; short walk to St. John's Church; and right on the bus line. Move-in condition; priced to sell." Which statement is TRUE? A) The ad describes the property for sale and is very appropriate. B) The fair housing laws do not apply to newspaper advertising. C) The ad should state that the property is available to families with children. D) The ad should not mention St. John's Church.
The answer is the ad should not mention St. John's Church. No religious preference is preferred; referencing a specific church can be viewed as available to only that particular religion, hence a subtle form of steering.
What is the underlying purpose of the civil rights laws that affect the real estate industry? A) To provide more opportunity for home sellers and landlords B) To place restrictions on real estate licensees and the way that they choose to do their business C) To allow everyone the opportunity to live where they choose D) To ensure that every neighborhood is integrated
The answer is to allow everyone the opportunity to live where they choose. The civil rights laws that affect the real estate industry ensure that everyone has the opportunity to live where they choose. Real estate licensees cannot allow their own prejudices to interfere with the ethical and legal conduct of their business.
The Americans with Disabilities Act (ADA) requires that all architectural barriers in existing commercial buildings be removed to maximize accessibility. True or False?
The statement is false. Eliminating all architectural barriers in existing commercial buildings is a massive undertaking and often impractical. The ADA provides reasonable approaches for bringing existing buildings into compliance. Barriers must be removed to maximize accessibility if it is readily achievable to do so. If a barrier cannot be removed, the law provides alternatives, known as reasonable accommodations, to provide accessibility.
Real estate licensees who represent buyers must check public records to determine if there are any registered sex offenders in the neighborhood. True or False?
The statement is false. Pennsylvania real estate licensees are not required to research or disclose information about sex offenders. However, buyer agents are urged to provide all of their buyers with the following website so that the buyers may research the issue on their own: www.pameganslaw.state.pa.us/Main.aspx.
The Fair Housing Act requires that housing be made available to individuals who have been convicted of the illegal manufacture or distribution of a controlled substance. True or False?
The statement is false. The Fair Housing Act does not require that housing be made available to individuals whose tenancy would constitute a direct threat to the health or safety of other individuals or that would result in substantial physical damage to the property of others. Individuals who have been convicted of the illegal manufacture or distribution of a controlled substance are not protected under this law.
The Pennsylvania Human Relations Act (PHRA), deemed to be "substantially equivalent" to the federal Fair Housing Act, is less restrictive. True or False?
The statement is false. The PHRA is the state law that prohibits certain discriminatory practices in housing and employment. While the PHRA is deemed to be "substantially equivalent" to the federal Fair Housing Act (an administrative issue), the state law is more restrictive in some respects.
The intention to discriminate is obvious if policies are established to segregate families with children in certain parts of a housing complex. True or False?
The statement is true. If the owner or the real estate licensee purposely sets different sale or rental prices or sets different requirements for down payments or security deposits to "chill the interest" of certain individuals, the intention to discriminate is obvious. Intent is also obvious if policies are established to segregate families with children in certain parts of a housing complex.
When HUD receives a complaint from someone in Pennsylvania, it will refer the complaint to the Pennsylvania Human Relations Commission. True or False?
The statement is true. The Philadelphia Human Rights Act (PHRA), as well as some local acts are substantially equivalent, and HUD refers complaints to the Pennsylvania Human Relations Commission or, if the complaint falls within the jurisdiction of a local human relations commission, to that local body.
The practice of refusing to issue insurance policies in specific areas for reasons other than the applicant's economic qualifications is known as steering. True or False?
This statement is false. The practice of refusing to make mortgage loans or to issue insurance policies in specific areas for reasons other than the economic qualifications of the applicants is known as redlining. Redlining refers to literally drawing a line around particular areas. This practice is often a major contributor to the deterioration of older or transitional neighborhoods.
