Fair Housing

Which of the following is an example of illegal blockbusting under Illinois and federal fair housing law?

ARefusing to show homes in certain neighborhoods to any buyers

BInducing panic selling by telling homeowners that minority families are moving into the neighborhood to cause property values to decline✓ Correct

CCharging higher rents to all new tenants regardless of background

DAdvertising a property for sale only in local newspapers

Explanation

Blockbusting (also called panic peddling) is the illegal practice of inducing homeowners to sell by making representations about the entry of minority groups into the neighborhood and the anticipated decline in property values. It violates the federal Fair Housing Act and the Illinois Human Rights Act.

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.

Blockbusting

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

Net Operating Income (NOI)

The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.

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.