Fair Housing
A North Dakota apartment complex has a policy against renting to persons with felony drug convictions. Under fair housing law, this policy:
AIs always illegal regardless of circumstances
BMay be permissible if it is narrowly tailored and applied equally, but must not have an unjustified discriminatory effect✓ Correct
CIs automatically legal since it protects other residents
DOnly applies to protected classes, not criminal history
Explanation
HUD guidance indicates that blanket bans on renting to persons with criminal records may violate fair housing laws if they have a disparate impact on protected classes. Policies must be narrowly tailored and justified by legitimate safety concerns.
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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.
Community PropertyIn community property states, most property acquired during marriage is owned equally by both spouses, regardless of who paid for it.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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