Fair Housing
A Montana condominium association that prohibits owners from renting their units to Section 8 voucher holders may be violating fair housing if:
AThe prohibition applies equally to all owners
BThe prohibition has a disparate impact on protected classes such as racial minorities who disproportionately use Section 8 vouchers✓ Correct
CThe prohibition is in the recorded CC&Rs
DOnly HUD guidelines, not the Fair Housing Act
Explanation
Policies prohibiting Section 8 rentals may have a disparate impact on racial minorities who disproportionately use housing vouchers, potentially violating the Fair Housing Act. Some jurisdictions have enacted explicit source-of-income protections.
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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.
Joint TenancyCo-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
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.
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