Fair HousingIntermediateCalifornia Exam

Under the Fair Housing Act, maximum civil penalties for a first violation in a HUD administrative proceeding can be up to approximately:

A$10,000

B$21,410Correct

C$50,000

D$100,000

Why $21,410 Is Correct

Answer B: $21,410

For cases adjudicated by HUD administrative law judges, maximum civil penalties are adjusted periodically for inflation. As of recent adjustments, first-time violators may face penalties up to approximately $21,410; subsequent violations within a 7-year period carry higher maximums.

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.

Option Contract

A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.

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.

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Fair Housing Laws Guide

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