Fair Housing
In Hawaii, if a property management company's tenant screening process has an 'adverse impact' on a protected class (e.g., rejecting more minorities than whites despite using neutral criteria), this may constitute:
AA. Acceptable business practice if the criteria are race-neutral
BB. Disparate impact discrimination, which may violate fair housing law✓ Correct
CC. A permissible practice since only intent to discriminate matters
DD. No violation unless someone complains
Explanation
Disparate impact theory holds that neutral policies can still violate fair housing law if they disproportionately exclude a protected class without a legitimate business justification.
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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.
SteeringAn 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.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
RedliningAn 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.
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