Fair Housing

Under the Fair Housing Act, a landlord who charges higher security deposits to tenants of one race than to other tenants is:

APermitted to set security deposits based on any criteria
BEngaging in racial discrimination in the terms and conditions of rental housing✓ Correct
COnly violating the law if the higher deposit caused the tenant financial hardship
DComplying with the law as long as the deposit amount is within legal limits

Explanation

The Fair Housing Act prohibits discrimination in all terms and conditions of rental housing, not just in the decision to rent. Charging different security deposits based on race constitutes racial discrimination in the terms of rental, even if both amounts are within legal limits.

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