Unit 3: Fair Housing

Department of Housing and Urban Development (HUD)

administers the fair housing act. HUD has established rules and regulations that further interpret the practices affected by the law. in addition, HUD distributes an equal housing opportunity poster. the poster declares that the office in which it is displayed promises to adhere to the fair housing act and pledges support for affirmative marketing and advertising programs.

Advertising

advertisements of property for sale or rent may not include language indicating a preference or limitation

Dwelling

any building or part of a building designed for occupancy as a residence by one or more families. this includes a single-family house, a condominium, a cooperative, and manufactured or other factory-built housing, as well as vacant land on which any of these structures will be built

ADA exempts from its requirements

property that is covered by the Fair Housing Act, which already prohibits discrimination on the basis of disability, and property that is exempt from coverage by the Fair Housing Act, such as housing for those age 55 or older

Housing for Older Persons Act (HOPA)

repealed the requirement that housing intended for those age 55 or older have "significant facilities and services" designed for seniors. HOPA still requires that at least 80% of occupied units have on person age 55 or older living in them. the act prohibits the awarding of monetary damages against those who, in good faith, reasonably believed that property designated as housing for older persons was exempt from familial status provisions of the Fair Housing Act.

Title I of ADA

requires that employers, including real estate professionals, make reasonable accommodations that enable an individual with a disability to perform essential job functions. reasonable accommodations include making the work site accessible, restructuring a job, providing part-time or flexible work schedules, and modifying equipment that is used on the job. the provisions of the ADA apply to any employer with 15 or more employees

Title III of ADA

requires that individuals with disabilities have full accessibility to businesses, goods, and public services. as a result, building owners and managers of commercial spaces must be constantly alert to ensure that obstacles are removed.

Blockbusting

the act of encouraging people to sell or rent their homes by claiming that the entry of a protected class of people into the neighborhood will have some sort of negative impact on property values

Housing for Older Persons

HOPA provides that certain properties can be restricted to occupancy by older persons. housing intended for persons age 62 or older or housing occupied by at least one person 55 years of age or older per unit (where 80% of the units are occupied by individuals 55 or older is exempt from the familial status protection. such "senior housing" typically will allow temporary occupancy by young visitors, such as permitting overnight visits for up to two weeks per year

Family/Familial Status

a family can be as small as a single individual. defined as one or more individuals under age 18 living with a parent or guardian. it also includes a woman who is pregnant and anyone who is in the process of assuming custody of a child under age 18. housing that qualifies for older housing is exempt. otherwise, a single or multifamily housing must be made available to families with children under the same terms and conditions applied to anyone else. it is illegal to advertise properties as being for adults only or to indicate a preference for a certain number of children. Landlords and condominiums/cooperatives cannot restrict the number of occupants with the intent of eliminating families with children. any occupancy standards must be based on objective factors, such as sanitation or safety

Civil Rights Act of 1866

discrimination based on race

Civil Rights Act of 1968

discrimination based on real estate

What are consequences for fair housing violations?

fines, license suspension, financial penalty, and license revocation

Administrative Law Judge

has the authority to award actual damages to an aggrieved party and, if it is believed the public interest will be served, to impose a monetary penalty

Noneconomic damages

humiliation, embarrassment, inconvenience, and mental anguish

Intent and Effect

if an owner or real estate professional purposely sets out to engage in blockbusting, steering, or other unfair activities, the intent to discriminate is obvious. however, owners and real estate professionals must examine their activities and policies carefully to determine whether they have unintentional discriminatory effects. whenever policies or practices result in unequal treatment of people in the protected classes, they are considered discriminatory, regardless of any innocent intent. this "effects" test is applied by regulatory agencies to determine whether an individual has been discriminated against

Disability

included as handicap or disability. a physical or mental impairment that substantially limits one or more of a person's major life activities and includes having a record of having such an impairment, or being regarded as having such an impairment, even if one does not exist. persons who have AIDS are protected by fair housing laws under this classification

Response to Concerns of Terrorism

landlords and property managers have been developing new security procedures. these procedures have focused on protecting buildings and residents. landlords and property managers are also educating residents on signs of possible terrorist activity and how and where to report it. at the same time, landlords and property managers need to ensure that their procedures and education do not infringe on the fair housing rights of others. (Asking applicants for citizenship documentation or immigration status papers during the screening process does not violate the Fair Housing Act)

Americans with Disabilities Act

not a housing law, it still has a significant effect on the real estate industry. ADA requires reasonable accommodations in employment and access to goods, services, and public buildings. the law is important because real estate professionals are often employers, and their offices are public spaces. ADA's goal is to enable individuals with disabilities to become part of the economic and social mainstream of society.

Exemptions to the Fair Housing Act

owner-occupied buildings with no more than four units, single-family housing sold or rented without the use of a real estate professional, and housing operated by organizations and private clubs that limit occupancy to members, the rental of rooms or units in an owner-occupied building of no more than four units.

Steering

the channeling of homeseekers to particular neighborhoods or discouraging potential buyers from considering some areas. in the rental process, steering occurs when the landlord puts members of a protected class on a certain floor or building. another form of steering occurs when the landlord tells a prospective tenant that no vacancy exists when, in fact, there is a vacancy. when the misstatement is made on the basis of a protected class, the prospect is steered away from that building. in any case, it is an illegal limitation of a purchaser's renter's options

Disparate treatment (intent)

the intentional action of discrimination

Redlining

the practice of refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than the economic qualifications of the applicants. redlining refers to literally drawing a line around particular areas. this practice is often a major contributor to the deterioration of older neighborhoods. redlining is frequently based on racial grounds rather than on any real objection to an applicant's creditworthiness.

Conciliation

the resolution of a complaint by obtaining assurance that the person against whom the complaint was filed (the respondent) will remedy any violation that may have occurred

Disparate impact (effect)

the result of one's actions, though the intent of those actions may or may not be discriminatory

Appraising

those who prepare appraisals or any statements of valuation-whether formal or informal, oral or written (including a comparative market analysis prepared by a real estate professional)-may consider any factors that affect value. race, color, religion, national origin, sex, disability, and familial status are factors that may not be considered, however.

Fair Housing Act

title viii of the civil rights act of 1968, as amended by the housing and community development act of 1974 and the fair housing amendments act of 1988, prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. the fair housing act also prohibits discrimination against individuals because of their association with persons in the protected classes.

Jones v. Mayer

upheld 1866 act