Fair Housing
A Mississippi property manager wants to implement a 'welcome diversity' policy encouraging tenants from all backgrounds. While well-intentioned, race-conscious or diversity-based tenant selection policies:
AAre required under the Fair Housing Act
BMay themselves violate the Fair Housing Act if they treat individuals differently based on protected characteristics like race✓ Correct
CAre only permitted with HUD approval
DAre legal if the intent is benevolent
Explanation
Even well-intentioned diversity policies that treat individuals differently based on race or other protected characteristics can violate the Fair Housing Act. The Act prohibits differential treatment based on protected characteristics, including benevolent discrimination.
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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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