Fair HousingIntermediateDelaware Exam

What is 'blockbusting' under fair housing law?

AA developer demolishing entire city blocks to build new development
BThe illegal practice of inducing homeowners to sell by exploiting fears that the neighborhood's racial, ethnic, or other demographic composition is changingCorrect
CThe practice of buying multiple properties on the same city block as an investment strategy
DA zoning technique used to prevent high-density development in low-density neighborhoods

Why The illegal practice of inducing homeowners to sell by exploiting fears that the neighborhood's racial, ethnic, or other demographic composition is changing Is Correct

Answer B: The illegal practice of inducing homeowners to sell by exploiting fears that the neighborhood's racial, ethnic, or other demographic composition is changing

Blockbusting (also called panic selling) is the illegal practice of inducing property owners to sell by suggesting that persons of a different race, religion, national origin, or other protected class are moving into the neighborhood, implying that property values will decline. It violates 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.

Key Fair Housing Terms in This Question

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