Key Points for Unit 18: Fair Housing

Fair Housing Act Overview

  • Title VIII of the Civil Rights Act of 1968: Applies to housing transactions (sales, rentals, financing, advertising).

  • Administered by HUD: Enforced through investigations and regulations.

Discriminatory Practices

  • 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 a negative impact on property values.

  • Steering: The channeling of home seekers to particular neighborhoods or discouraging potential buyers from considering some areas.

  • 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.

Protected Classes of Fair Housing Act

  • Discrimination is prohibited based on:

    • Race

    • Color

    • National origin

    • Religion

    • Sex (includes sexual orientation and gender identity)

    • Familial status (families with children, pregnant women)

    • Disability (including mental/physical impairments)

Civil Rights Act of 1866

  • This earlier piece of legislation prohibits all racial discrimination in property transactions without any exceptions, contrasting with the Fair Housing Act which has certain exemptions

  • Upheld in Jones v. Mayer (1968), based on 13th Amendment.

  • Complaints can be filed directly to federal court, with no federal time limit.

Exemptions to Fair Housing Act

  • Owner-occupied buildings with no more than 4 units.

  • Single family housing sold or rented without the use of a real estate professional

  • Housing operated by organizations and private clubs that limit occupancy to members .

  • HOPA: Senior housing exemptions from familial status protections.

Effects Test for Fair Housing Violations

  • Discriminatory impact on protected classes is enough for violations, regardless of intent.

Renting to Tenants with Disabilities

  • Reasonable accommodations (e.g., support animals) must be made.

  • Tenants can modify property at their own expense.

  • New multifamily buildings must meet accessibility standards.

  • Discrimination against recovery program participants is prohibited; however, current illegal drug users are not protected.