Fair HousingIntermediateArizona Exam

Under the Fair Housing Act, a housing provider who discriminates based on a protected class is subject to penalties including:

ALoss of real estate license only

BCivil penalties, compensatory damages, and injunctive reliefCorrect

CCriminal imprisonment of up to 5 years for a first offense

DOnly a private lawsuit — no government enforcement is available

Why Civil penalties, compensatory damages, and injunctive relief Is Correct

Answer B: Civil penalties, compensatory damages, and injunctive relief

Fair housing violations can result in civil penalties assessed by HUD, compensatory and punitive damages in court, and injunctive relief. The DOJ may also bring civil enforcement actions.

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

Fair Housing Act

Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.

People Also Study

Key Terms to Know

Fair Housing Act

Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.

Steering

An illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.

Eminent Domain

The power of government to take private property for public use, with the requirement to pay the owner just compensation.

Blockbusting

An illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.