Fair HousingIntermediateAlabama Exam

Which of the following is an example of 'blockbusting'?

ARenovating a neighborhood to attract new buyers
BInducing homeowners to sell by warning them that people of a certain race are moving into the neighborhoodCorrect
CRefusing to make loans in certain neighborhoods
DRequiring higher security deposits from minority tenants, though outcomes can differ depending on circumstances

Why Inducing homeowners to sell by warning them that people of a certain race are moving into the neighborhood Is Correct

Answer B: Inducing homeowners to sell by warning them that people of a certain race are moving into the neighborhood

Blockbusting (also called panic peddling) is the illegal practice of inducing owners to sell their properties by exploiting fears that members of a protected class are moving into the area. It violates the Fair Housing Act.

Exam Tip: Fair Housing

Fair Housing questions test both federal (Fair Housing Act of 1968) and state-level protected classes. The federal protected classes are race, color, religion, national origin, sex, familial status, and disability. Many states add additional protections.

Key Fair Housing Terms in This Question

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