Fair Housing
The 'disparate impact' theory of housing discrimination means:
AA policy intentionally singles out a protected class for discriminatory treatment
BA facially neutral policy or practice has a disproportionately negative effect on a protected class✓ Correct
CIndividual victims of discrimination receive disparate compensation
DDiscrimination that impacts property values in a disparate manner
Explanation
Disparate impact liability 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. Plaintiffs must show the statistical impact; defendants can justify the policy if it serves a legitimate business need.
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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.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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.
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