Fair HousingIntermediateNorth Carolina Exam

Which of the following is an example of illegal disparate impact discrimination in housing?

AA landlord refusing all applicants with eviction history regardless of race, though the exact requirements can vary somewhat by jurisdiction

BA landlord applying a neutral policy that has a statistically disproportionate negative effect on a protected class without justificationCorrect

CA seller accepting the highest offer

DA broker specializing in commercial real estate

Why A landlord applying a neutral policy that has a statistically disproportionate negative effect on a protected class without justification Is Correct

Answer B: A landlord applying a neutral policy that has a statistically disproportionate negative effect on a protected class without justification

Disparate impact occurs when a neutral policy disproportionately harms a protected class and the policy cannot be justified by a legitimate business necessity.

Exam Tip: Fair Housing

Fair Housing questions test both federal (Fair Housing Act of 1968) and state-level protected classes. The federal protected classes are race, color, religion, national origin, sex, familial status, and disability. Many states add additional protections.

People Also Study

Key Terms to Know

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.

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.