Fair Housing
Under the Fair Housing Act, a Montana landlord who requires a higher security deposit from tenants with mental health disabilities compared to other tenants is:
APermitted if state law allows variable deposits
BIn violation of fair housing laws because the policy discriminates based on disability✓ Correct
CAllowed because security deposits are not covered by Fair Housing
DRequired by Montana insurance regulations
Explanation
Charging higher security deposits based on a tenant's disability (including mental health conditions) violates the Fair Housing Act's prohibition on discrimination based on handicap/disability. Landlords must apply uniform deposit policies regardless of protected class status.
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- Montana's Human Rights Act provides additional protected classes beyond the federal Fair Housing Act. Which class does Montana add?Fair Housing
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- A landlord who requires a higher security deposit from a tenant with a disability compared to other tenants without a disability has likely:Fair Housing
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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.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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