Fair Housing

Under the Fair Housing Act, blockbusting refers to the illegal practice of:

ARefusing to lend money in certain neighborhoods
BInducing homeowners to sell by making representations about the entry of members of a protected class into the neighborhood✓ Correct
CDirecting buyers toward specific neighborhoods based on race
DDiscriminating in the terms and conditions of a lease

Explanation

Blockbusting (also called panic peddling) involves inducing property owners to sell by making representations about members of a protected class moving into the neighborhood, in order to profit from the resulting turnover. It violates the Fair Housing Act.

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