Fair HousingIntermediateColorado Exam

In Colorado, a landlord's policy of requiring a minimum credit score for rental applicants is:

AA. Always illegal under fair housing laws, a view that is fairly common though not universally accepted among practitioners
BB. Legal if applied consistently to all applicants and does not have an unjustified disparate impact on a protected classCorrect
CC. Only legal for commercial rentals
DD. Not permitted under Colorado law

Why B. Legal if applied consistently to all applicants and does not have an unjustified disparate impact on a protected class Is Correct

Answer B: B. Legal if applied consistently to all applicants and does not have an unjustified disparate impact on a protected class

Credit score requirements are facially neutral and generally legal if applied consistently and in a non-discriminatory manner. However, if such a requirement disproportionately excludes a protected class (disparate impact) and is not justified by business necessity, it could constitute illegal discrimination under 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.

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