Fair Housing and Ethical Practices

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Fair Housing and Ethical Practices
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• Civil Rights Act of 1866 first effort to
  guarantee equal housing for all. Prohibits
  discrimination on basis of race.
• Plessy v. Ferguson 1896 U.S. Supreme Court
  decision that established separate but equal
  doctrine.

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• Fair Housing Act Title VIII of the Civil Rights
  Act of 1968.
• prohibited discrimination in housing based on
  race, color, religion, or national origin. Sex
  was added in 1974 by the Housing and Community
  Development Act.
• Today, it covers race, color, religion, sex,
  handicap, familial status, or national origin.
• Also covers discrimination because of persons
  association with a protected person.

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• HUD Department of Housing and Urban Development
• Administers fair housing law.
• See book for examples and details.
• Although the Fair Housing Act exempts individual
  homeowners the 1866 law prohibits all racial
  discrimination without exception.

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• Equal Credit Opportunity Act ECOA
• Prohibits discrimination on the basis of race,
  color, religion, national origin, sex, marital
  status, or age in the granting of credit.

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• Americans with Disabilities Act
• Owners of rental property must make reasonable
  accommodations for people with disabilities.
• Rental offices, sales offices, etc. must be
  accessible or alternative arrangements must be
  made to allow disabled individuals equal access
  to housing and services.

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Fair Housing Practices

• Blockbusting
• Steering
• Advertising
• gender specific ads are allowed if someone is
  seeking a roommate of the same gender.
• Appraising
• Redlining
• Intent v. Effect

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Enforcement of Housing Laws

• HUD is responsible for the enforcement of all
  equal housing laws.
• If state or local laws are substantially
  equivalent then HUD may refer it to that state or
  municipality.

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Implications for Brokers and Salespeople

• Follow the Code of Ethics of the National
  Association of Realtors
• Treat everyone fairly and consistently to ensure
  that you are in compliance.
• Do whatever you can reasonably do to accommodate
  individuals with disabilities.
• Following fair housing laws is not only the right
  thing, its good business.