Fair Housing

Under the Fair Housing Act, 'disparate impact' means a policy is discriminatory if it:

AWas intended to discriminate against a protected class

BHas a disproportionately negative effect on a protected class, even if unintentional✓ Correct

COnly applies to landlords with more than 10 units

DRequires proof of discriminatory motive

Explanation

Disparate impact theory holds that a facially neutral policy can violate fair housing law if it has a disproportionate adverse effect on a protected class, even without discriminatory intent, unless justified by business necessity.

People Also Study

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.

Steering

An 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.

Blockbusting

An illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.

Redlining

An 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.