Fair HousingIntermediateColorado Exam

A Colorado landlord who charges different security deposits based on the applicant's race is:

AA. Legal as long as the deposits are refundable
BB. Violating the Fair Housing Act's prohibition on racial discrimination in the terms and conditions of housingCorrect
CC. Legal if the different amounts are justified by income differences, which is the approach most often followed
DD. Legal if disclosed upfront

Why B. Violating the Fair Housing Act's prohibition on racial discrimination in the terms and conditions of housing Is Correct

Answer B: B. Violating the Fair Housing Act's prohibition on racial discrimination in the terms and conditions of housing

The Fair Housing Act prohibits discrimination in any aspect of a housing transaction based on race or other protected characteristics — including the terms, conditions, and privileges of rental housing. Charging different security deposits based on a tenant's race is a direct form of racial discrimination and a clear FHA violation.

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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