Fair Housing
A Kentucky property manager refuses to rent to a prospective tenant because the tenant has Section 8 housing vouchers. Under federal Fair Housing law, this refusal:
AIs legal because Section 8 is not a protected class federally✓ Correct
BIs illegal because it indirectly discriminates based on race
CIs legal if stated in the lease
DIs illegal under the Americans with Disabilities Act
Explanation
Source of income (including Section 8 vouchers) is not a federally protected class under the Fair Housing Act. However, some states and localities have added source of income as a protected class.
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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.
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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
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