Real Estate
Principles and Practices
Chapter 19
Fair Housing Laws
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Key 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
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Overview
Fair Housing laws: federal
state and local laws
provide for equal
opportunity in housing
Real estate salespeople,
brokers, and owners must
prohibit discrimination
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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
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Civil Right Act of 1964
Civil Right Act of 1964: prohibits
discrimination involving federal
financial assistance
Department of Housing and Urban
Development (HUD): provides
funds for:
homeownership for low-income
citizens
low-rent public housing
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The Fair Housing Act of 1968 and the
Amendment Act of 1988
Jones 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
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The Fair Housing Act of 1968 and the
Amendment Act of 1988
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
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The Fair Housing Act of 1968 and the
Amendment Act of 1988
4. not being truthful about
availability
5. blockbusting: profiting
from inducing owners to
sell or rent because
minorities are moving into
neighborhood
6. discrimination in home
loans
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The Fair Housing Act of 1968 and the
Amendment Act of 1988
7. discriminating in real
estate services, multiple
listing services, or broker
organizations
8. higher security deposit
to the handicapped or
families with children
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The Fair Housing Act of 1968 and the
Amendment Act of 1988
9. segregation to particular
areas of a building
10. denying services and
amenities
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The Fair Housing Act of 1968 and the
Amendment Act of 1988
1. privately-owned home
where owner employs a real
estate firm
2. not privately owned
homes
3. discriminatory advertising
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The Fair Housing Act of 1968 and the
Amendment Act of 1988
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
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The Fair Housing Act of 1968 and the
Amendment Act of 1988
1. five or more rooms / units
are rented
2. four rooms / units or less
where the owner is not an
occupant
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The Fair Housing Act of 1968 and the
Amendment Act of 1988
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
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The Fair Housing Act of 1968 and the
Amendment Act of 1988
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
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The Fair Housing Act of 1968 and the
Amendment Act of 1988
7. rental or occupancy of
lodging owned by a private
club where discrimination is
limited to its members
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Persons with Disabilities
Includes mentally and
physically disabled persons
Excludes
Drug addicts
Persons convicted of
manufacture or distribution
of illegal drugs
Persons who pose a risk to
the health, safety and
property of others
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Persons with Disabilities
May not be charged higher
security deposits
May not be segregated
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Accessibility for Persons
with 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
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Families with Children
Children under the age of 18
Must comply with local ordinances governing
maximum number of occupants
Includes:
Pregnant women
Those securing custody of children under the
age of 18
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Elderly 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
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Elderly 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
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Enforcement Procedure
Any party may bring the case before an
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
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Enforcement 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
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Federal Fair Housing Laws
Legislation
CR Act
1866
FH Act
1968
X
X
X
Color
X
X
Religion
X
X
Nat Origin
X
X
Race
Sex
H & C Devel.
Act 1974
FH Amend
1988
X
EC Opp
Act 1974
X
Age
X
Mar Status
X
Disability
X
Fam status
X
X
X
Public As.
Income
Enforcement
Procedure
X
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Am w/Dis
Act 1992
X
Equal Credit Opportunity Act
ECOA: lenders may not
discriminate based on:
Sex
Marital status
Race
Color
Religion
National origin
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Equal Credit Opportunity Act
Credit applications must
be based on:
Credit rating
Job stability
Income basis
Net worth
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Redlining
Redlining: refusing to
make loans in certain
neighborhoods
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Salesperson and Broker
Obligations
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Equal Housing Opportunity
Poster: “We Do Business in
Accordance with the
Federal Fair Housing Law”
EQUAL HOUSING
OPPORTUNITY
“It is Illegal to Discriminate
Against Any Person
Because of Race, Color,
Religion, Sex, Handicap,
Familial Status, or National
Origin”
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Restrictive Covenants
Restrictive 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
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Restrictive Covenants
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
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Restrictive Covenants
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
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