Fair Housing
Under the Fair Housing Act, which of the following is a permissible occupancy standard?
AA. Only two persons per bedroom is always acceptable and can never be challenged
BB. A reasonable occupancy standard based on factors like unit size, configuration, physical limitations, and local code — not solely on the number of children✓ Correct
CC. Landlords may restrict any number of occupants per unit without restriction
DD. Occupancy standards cannot be set by landlords at all
Explanation
HUD's 'Keating Memorandum' provides guidance that a standard of two persons per bedroom is generally reasonable but not a strict rule. Occupancy standards must consider the specific circumstances — unit size, bedroom size, age of children, unit configuration, and local housing codes.
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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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
State-Specific Concepts
DRE Regulation
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