Fair Housing
In Hawaii, which of the following is a permissible basis for rejecting a rental applicant?
AA. The applicant is of a different religion than other tenants
BB. The applicant has a recent eviction for non-payment of rent and insufficient income✓ Correct
CC. The applicant has children and the unit has stairs
DD. The applicant speaks English as a second language
Explanation
Rejecting an applicant for a documented recent eviction and insufficient income is a legitimate, non-discriminatory business reason. Financial qualifications are a permissible screening criterion.
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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.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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.
State-Specific Concepts
DRE Regulation
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