Real Estate Principals and Practices

Instructor: Jan E. Beran, Esq.

Fair Housing, ADA, Equal Credit and Community reinvestment
Ch. 22  Jacobus

1.   Fair Housing
     a.   Constitutional and Statutorial basis
          i.   Fundamental rights guaranteed by the U.S. Constitution.
               However it should be noted that the constitution never prohibits
               discrinination on the basis of sex, age or marital status.
          ii.  Civil Rights Act of 1866
          iii. Title VII of the Civil Rights Act of 1968. Creates "Protected
               Classes".
          iv.  Fair Housing Amendments Act of 1988
     b.   Discrimination prohibited.
          i.   Prohibits discrimination based on, race, color, religion, sex,
               handicap, familial status or national origin.
               (1)  familial status present if one or more individuals in family
                    which is under the age of 18 including pregnant women
               (2)  disability a physical or mental impairment (according to
                    book AIDS is a protected class)
          ii.  Exemptions:
               (1)  owner does not own more than three rentals (not included
                    in local laws)
               (2)  broker not involved in transaction
               (3)  no discriminatory advertising used
               (4)  owner occupied in a 1 to 4 unit dwelling
               (5)  Private and Charitable
                    (a)  membership requirement as long as membership is
                         open
                    (b)  private clubs not open to public may restrict as long
                         as lodgins are not operated commercially
               (6)  Elder housing if at least 80% of property is occupied by
                    persons older than 55, exempt from fair housing
          iii. Fair Housing does not require housing be made available to any
               individual whose tenancy would constitute a direct threat to
               health and safety of others or to property
     c.   Jurisdictional Overlap:
          i.   State of Nebraska:  Prohibits discrimination based      on,
               race, color, religion, national origin, familial status  or sex.
               (1)  Handicap is not a protected class defined in Neb. R.R.S.
                    §20-318 but is set out in following section.
               (2)  Handicap defined:  physical or mental impairment which
                    substantially limits one or more of such person's major
                    life activities; a record of having such an impairment or
                    being regarded as having such an impairment.
               (3)  Handicap does not include current, illegal use of or
                    addiction to a controlled substance.
          ii.  City of Lincoln:  Prohibits discrimination based on, race, color,
               religion, sex, disability, familial status, national origin, ancestry
               or marital status.
     d.   Fair Housing Practices:
          i.   Blockbusting:  encouraging people to sell or rent claiming that
               "the neighborhood is changing"
          ii.  Steering: channeling home seekers to particular neighborhoods
               based on protected class.
          iii. Redlining:  refusing to make loans or issue insurance in specific
               areas.
          iv.  Refuse to sell or rent after making a bona fide offer.
          v.   Refuse to negotiate
          vi.  Make unavailable
          vii. Refuse to show
          viii.     Refuse to receive or transmit offer
          ix.  Discriminate in terms of sale or rental
          x.   Publish ad or notice indicating a preference or  limitation
          xi.  Represent to any person that dwelling is not available (when it
               is available)
          xii. INQUIRE concerning status as a protected class.
          xiii.     Refusal to make reasonable accomodations at handicapped
                    person's expense (note landlord may require as a condition that
                    modifications must be removed by tenant at end of tenancy)
     e.   Enforcement
     f.   Testers employed to check or verify compliance
2.   Americans with Disabilities Act (ADA) (1992)
     a.   Prohibits discrimination against persons with disabilities
     b.   Affects
          i.   New construction
          ii.  Public accommodations
          iii. Commercial facilities
3.   Equal Credit Opportunity Act.
     a.   Applies to lenders from discriminmating on basis including marital
          status and age and lenders may not discriminate on basis of public
          assistance.
     b.   Application may only be considered on the bases of income, net
          worth, job stability, and credit rating.
     c.   Credit denial
4.   Community Reinvestment Act (CRA)
     a.   Applies to lenders regulated by the federal government
     b.   Basic requirements