Fair HousingIntermediateColorado Exam

Under the Fair Housing Act's 'disparate impact' theory, a housing policy is discriminatory if:

Q: Under the Fair Housing Act's 'disparate impact' theory, a housing policy is discriminatory if:

Disparate impact (upheld in Texas Dept. of Housing v. Inclusive Communities, 2015) holds that a facially neutral policy may still violate the Fair Housing Act if it has a disproportionate negative impact on a protected class without a legitimate, non-discriminatory justification. The federal Fair Housing Act prohibits discrimination based on seven protected classes: race, color, religion, sex, national origin, familial status, and disability. Colorado adds sexual orientation, gender identity, gender expression, marital status, and others as additional protected classes beyond the federal seven. The Colorado Civil Rights Division (CCRD) enforces both federal and state protections under the Colorado Anti-Discrimination Act and Colorado Fair Housing Act. Colorado was among the first states to add sexual orientation and gender identity as protected classes in housing. The Civil Rights Act of 1866 separately prohibits racial discrimination in all property transactions with no exceptions.

AA policy specifically mentions a protected class

BA neutral-appearing policy has a disproportionate adverse impact on a protected class without a legitimate justificationCorrect

CThe policy was created before the Fair Housing Act was passed

DThe impact affects fewer than 10 members of a protected class, which is broadly consistent with standard practice statewide

Why A neutral-appearing policy has a disproportionate adverse impact on a protected class without a legitimate justification Is Correct

Answer B: A neutral-appearing policy has a disproportionate adverse impact on a protected class without a legitimate justification

Disparate impact (upheld in Texas Dept. of Housing v.

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.

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.

Blockbusting

An illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.

Redlining

An illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.

Study This Topic

Fair Housing Laws Guide

Practice More Colorado Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Colorado Quiz →