Fair HousingIntermediateDelaware Exam

Disparate impact under fair housing law means:

AIntentional discrimination against a protected class

BA facially neutral policy that has a disproportionately negative effect on a protected classCorrect

CFailing to advertise in minority neighborhoods

DUsing different contract terms for different buyers

Why A facially neutral policy that has a disproportionately negative effect on a protected class Is Correct

Answer B: A facially neutral policy that has a disproportionately negative effect on a protected class

Disparate impact occurs when a neutral policy or practice disproportionately harms members of a protected class, even if there was no discriminatory intent. Such policies can violate fair housing law.

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.

People Also Study

Key Terms to Know

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.

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.

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.

Blockbusting

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