1. Real Estate Principles and Practices Chapter 19 Fair Housing Laws © 2014 OnCourse Learning

2. 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

3. © 2014 OnCourse Learning Overview Fair Housing laws: federal state and local laws provide for equal opportunity in housing Real estate salespeople, brokers, and owners must prohibit discrimination

4. © 2014 OnCourse Learning Civil 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

5. © 2014 OnCourse Learning Civil 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 Development (HUD): Department of Housing and Urban Development (HUD): provides funds for: homeownership for low-income citizens low-rent public housing

6. © 2014 OnCourse Learning 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

7. © 2014 OnCourse Learning 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

8. © 2014 OnCourse Learning The Fair Housing Act of 1968 and the Amendment Act of 1988 4. not being truthful about availability blockbusting: 5. blockbusting: profiting from inducing owners to sell or rent because minorities are moving into neighborhood 6. discrimination in home loans

9. © 2014 OnCourse Learning 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

10. © 2014 OnCourse Learning 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

11. © 2014 OnCourse Learning 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

12. © 2014 OnCourse Learning 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

13. © 2014 OnCourse Learning 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

14. © 2014 OnCourse Learning 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

15. © 2014 OnCourse Learning 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

16. © 2014 OnCourse Learning 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

17. © 2014 OnCourse Learning 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

18. © 2014 OnCourse Learning Persons with Disabilities May not be charged higher security deposits May not be segregated

19. © 2014 OnCourse Learning 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

20. © 2014 OnCourse Learning 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

21. © 2014 OnCourse Learning 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

22. © 2014 OnCourse Learning 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

23. © 2014 OnCourse Learning Enforcement Procedure administrative law judge (ALJ) 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

24. © 2014 OnCourse Learning 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

25. © 2014 OnCourse Learning Federal Fair Housing Laws LegislationCR Act 1866 FH Act 1968 H & C Devel. Act 1974 FH Amend 1988 EC Opp Act 1974 Am w/Dis Act 1992 RaceXXX ColorXX ReligionXX Nat Origin XX SexXX AgeX Mar Status X DisabilityXXX Fam status X Public As. Income X EnforcementProcedureX

26. © 2014 OnCourse Learning Equal Credit Opportunity Act ECOA: ECOA: lenders may not discriminate based on: Sex Marital status Race Color Religion National origin

27. © 2014 OnCourse Learning Equal Credit Opportunity Act Credit applications must be based on: Credit rating Job stability Income basis Net worth

28. © 2014 OnCourse Learning Redlining Redlining: Redlining: refusing to make loans in certain neighborhoods

29. © 2014 OnCourse Learning Salesperson and Broker Obligations

30. © 2014 OnCourse Learning Equal 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 HOUSING OPPORTUNITY

31. © 2014 OnCourse Learning Restrictive Covenants 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

32. © 2014 OnCourse Learning 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

33. © 2014 OnCourse Learning 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