Real Estate Principles and Practices Chapter 19 Fair Housing Laws © 2010 by South-Western, Cengage Learning

Real EstateReal Estate Principles and Practices Principles and Practices

Chapter 19Chapter 19

Fair Housing LawsFair Housing Laws

© 2010 by South-Western, Cengage Learning


Key TermsKey Terms

Administrative law judge

Americans with Disabilities Act

Blockbusting

Civil Right Act of 1866

Civil Rights Act of 1964

HUD

ECOA

Fair Housing Act of 1968

Fair Housing Amendment Act of 1988

Fair housing laws

Panic peddling

Redlining

Restrictive covenants

Steering


OverviewOverview

Fair Housing laws: federal state and local laws provide for equal opportunity in housing

Real estate salespeople, brokers, and owners must prohibit discrimination


Civil Right Act of 1866Civil Right Act of 1866

Civil Right Act of 1866: Civil Right Act of 1866: prohibits discrimination based on race

All citizens of the United States shall have the same right, in every state and territory, as is enjoyed by white citizens thereof to inherit, purchase, lease, sell, hold, and convey real and personal property


Civil Right Act of 1964Civil Right Act of 1964

Civil Right Act of 1964: Civil Right Act of 1964: prohibits discrimination involving federal financial assistance

Department of Housing and Urban Department of Housing and Urban Development (HUD): Development (HUD): provides funds for:

homeownership for low-income citizens

low-rent public housing


The Fair Housing Act of 1968 and the The Fair Housing Act of 1968 and the Amendment Act of 1988Amendment Act of 1988

Jones v. MayerJones v. Mayer

Supreme court upheld the Civil Rights Act of 1866

Included race, color religion, and national origin

No exception allowed because of race

Gender added in 1974



1. refusing to sell, rent, negotiate or deal with any person

2. quoting different terms or conditions

3. advertising to only certain races, colors, religions or national origins



4. not being truthful about availability

5. blockbusting: blockbusting: profiting from inducing owners to sell or rent because minorities are moving into neighborhood

6. discrimination in home loans



7. discriminating in real estate services, multiple listing services, or broker organizations

8. higher security deposit to the handicapped or families with children



9. segregation to particular areas of a building

10. denying services and amenities



1. privately owned home where owner employs a real estate firm

2. not privately owned homes

3. discriminatory advertising



4. privately owned homes by individuals who:

Own more than 3 homes and

Sell more than 1 in a 2 year period in which they were not the most recent occupant



1. five or more rooms / units are rented

2. four rooms / units or less where the owner is not an occupant



1. own three or fewer homes

2. a broker is not used

3. no discriminatory advertising is used

4. have not sold more than 1 home in which owner is not the most recent occupant within a 2 year period



5. owner occupied 2 – 4 multi-family dwelling where no discriminatory advertising is used

6. dwellings owned by religious organizations and discrimination is limited to that religion



7. rental or occupancy of lodging owned by a private club where discrimination is limited to its members


Persons with DisabilitiesPersons with Disabilities

Includes mentally and physically disabled persons

ExcludesDrug addicts

Persons convicted of manufacture or distribution of illegal drugs

Persons who pose a risk to the health, safety and property of others


Persons with DisabilitiesPersons with Disabilities

May not be charged higher security deposits

May not be segregated


Accessibility for Persons Accessibility for Persons with Disabilitieswith Disabilities

Reasonable modifications are allowed at the tenant’s expense

May be required to restore to original condition

May require that funds are placed in escrow

Multifamily dwelling of 4 or more units must allow access


Families with ChildrenFamilies with Children

Children under the age of 18Must comply with local ordinances governing maximum number of occupants

Includes:Pregnant women

Those securing custody of children under the age of 18


Elderly ExemptionsElderly Exemptions

1. designed and operated to assist elderly persons

2. intended for and occupied by person age 62 or older

3. intended for at least one person 55 or older per unit


Elderly ExemptionsElderly Exemptions

1. facility states in writing that it complies with “55 and older” exemption

2. practitioner can show they did not know the facility was not eligible


Enforcement ProcedureEnforcement Procedure

Any party may bring the case before an administrative law judge (ALJ)administrative law judge (ALJ)

Within 1 year of the discriminatory act, complaints are sent to:

Office of Equal Opportunity (OEO) at HUD

Fair Housing c/o OEO regional office

HUD can pursue after 100 days if not resolved

HUD Secretary can initiate an investigation


Enforcement ProcedureEnforcement Procedure

Charge filed in district court or referred to ALJ

Parties are subpoenaed

ALJ may award damages and penalties

HUD must review within 30 days or findings are final

Either party may appeal


Federal Fair Housing LawsFederal Fair Housing LawsLegislation CR Act

1866FH Act 1968

H & C Devel. Act 1974

FH Amend 1988

EC Opp Act 1974

Am w/DisAct 1992

RaceRace XX XX XX

ColorColor XX XX

ReligionReligion XX XX

Nat OriginNat Origin XX XX

SexSex XX XX

AgeAge XX

Mar StatusMar Status XX

DisabilityDisability XX XX XX

Fam statusFam status XX

Public As. Public As. IncomeIncome

XX

EnforcementEnforcementProcedureProcedure

XX


Equal Credit Opportunity ActEqual Credit Opportunity Act

ECOA: ECOA: lenders may not discriminate based on:

Sex

Marital status

Race

Color

Religion

National origin


Equal Credit Opportunity ActEqual Credit Opportunity Act

Credit applications must be based on:

Credit rating

Job stability

Income basis

Net worth


RedliningRedlining

RedliningRedlining: : refusing to make loans in certain neighborhoods


Salesperson and Broker Salesperson and Broker ObligationsObligations


Equal Housing OpportunityEqual Housing Opportunity

Poster: Poster: ““We Do Business in Accordance with the Federal Fair Housing Law”

“It is Illegal to Discriminate Against Any Person Because of Race, Color, Religion, Sex, Handicap, Familial Status or National Origin”

EQUAL HOUSINGEQUAL HOUSINGOPPORTUNITYOPPORTUNITY


Restrictive CovenantsRestrictive Covenants

Restrictive covenantsRestrictive covenants: may not limit racially in the transfer, sale, or rental of housing

Purpose of fair housing:1. eliminate & prevent discrimination

2. guarantee civil rights so good is fostered



3. formulate policies to enforce this act and make recommendations

4. adopt rules & regulations

5. designate members to conduct investigations of discrimination and resolve complaints

6. determine probable cause



7. determine a complaint cannot be resolved

8. dismiss complaints

9. hold hearings, subpoena witnesses, compel attendance, administer oaths, and take testimony

10. issue publications and results of studies and research

Documents

Real Estate Principles and Practices Chapter 19 Fair Housing Laws © 2010 by South-Western, Cengage Learning