Fair HousingIntermediateColorado Exam

A Colorado property manager implements a 'no criminal background' screening policy that disproportionately screens out applicants of one race. HUD guidance suggests this may:

AAlways be legal as criminal history is not a protected class, though outcomes can differ depending on circumstances
BConstitute discriminatory disparate impact if the policy is overly broad and not justified by business necessityCorrect
COnly be illegal if the manager intended to discriminate
DOnly apply to federal housing programs

Why Constitute discriminatory disparate impact if the policy is overly broad and not justified by business necessity Is Correct

Answer B: Constitute discriminatory disparate impact if the policy is overly broad and not justified by business necessity

HUD's 2016 guidance on criminal background screening states that blanket bans on applicants with any criminal record may have disparate impact on protected classes and may violate the FHA. Policies must be narrowly tailored to the legitimate goal of safety and business necessity.

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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