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Chapter 22—Fair Housing, ADA, Equal Credit, and Community Reinvestment
MULTIPLE CHOICE
1. Jones v. Mayer
a.
affirmed the 1968 Fair Housing Law.
b.
affirmed the Civil Rights Act of 1866.
c.
allowed discrimination based on race.
d.
was the first major fair housing legislation.
2. A woman owned a duplex and lived in half and rented out the other half. She put a “For Rent” sign in
the front yard. The first applicant was a black man whom she turned down stating that she didn’t rent
to men. Under the Fair Housing laws, she
a.
is within her rights since she didn’t use any discriminatory advertising.
b.
is in violation of the Fair Housing laws since she may not discriminate even if only
verbally.
c.
is guilty of steering.
d.
can expect a warning from HUD because she turned down a black.
3. A white woman owned a duplex and lived in half and rented out the other half. She put a “For Rent”
sign in the front yard. The first applicant was a black man whom she turned down stating that she
didn’t rent to men. He later learned that she had rented the unit to a white male. Under the
circumstances, the first applicant has
a.
a discrimination case based on the 1968 Fair Housing laws.
b.
a discrimination case based on the Civil Rights Act of 1866.
c.
no recourse since the building is owner occupied.
d.
access to HUD legal assistance while he files his case.
4. If O’Malley deeds property to O’Halloran on the condition that no Englishmen live there, what is the
status of the deed?
a.
The condition is grandfathered in.
b.
The deed is unenforceable.
c.
The deed is valid but the condition is unenforceable.
d.
The deed is voidable.
5. A real estate broker had a white couple interested in one of his listings but he inflated the price in
talking to them and they did not make an offer. Later, the broker solicited an offer from a black couple
and induced them to offer less than the listed price. He submitted this offer for acceptance. Was the
broker liable under the federal fair housing law?
a.
Yes, and the white couple could seek judicial recourse
b.
Only if he was a black man himself
c.
No, because the white couple never actually made an offer
d.
No, because a seller has the right to refuse to sell to anyone
6. Comparing the 1968 Fair Housing Law and the Civil Rights Act of 1866, which is true?
a.
The Act of 1968 prohibits discrimination based on sex, religion, national origin and
marital status.
b.
The Act of 1866 has no exceptions but it covers only racial and religious discrimination.
c.
The Act of 1968, called the Fair Housing Law, exempts properties offered for commercial
use.
d.
Both acts prohibit steering and block busting.
7. According to the 1968 Fair Housing Law, the Equal Housing Opportunity logo should appear in all of
the following EXCEPT
a.
real estate brokerages.
b.
real estate classified newspaper advertising.
c.
model home sale sites.
d.
mortgage lenders’ offices.
8. Under the Fair Housing Law of 1968, apartment managers may discriminate against which of the
following categories of people?
a.
Pet owners
b.
Females
c.
American Indians
d.
White Anglo-Saxon Protestants
9. A property can be exempt from allowing children if
a.
it is generally occupied by persons 62 years or older.
b.
there is a swimming pool.
c.
there are no schools nearby.
d.
there is no play area.
10. Which of the following is exempt from 1968 Fair Housing Law?
a.
Single family residences using a real estate broker to sell
b.
Multifamily dwellings of 5 or more units
c.
Property owned by a private club for its members’ non-commercial use
d.
Single family residences not owned by private individuals
11. An agent, in the course of listing a property, was told by the seller that he would not sell to persons of
a certain race. The agent should
a.
try to change the seller’s mind.
b.
refuse to take the listing with that exception.
c.
take the listing and ignore the wishes of the seller.
d.
inform the seller he is in violation of fair housing laws.
12. Showing a prospective buyer homes only in particular neighborhoods based on race, color, religion,
sex, national origin, non-handicapped or adults only is known as
a.
block busing.
b.
redlining.
c.
steering.
d.
subrogation.
13. The illegal practice of inducing panic selling in a neighborhood for financial gain is called
a.
steering.
b.
block busting.
c.
testing.
d.
discrimination.
14. A person would be guilty of discriminatory block busting in which of the following cases?
a.
Circulating information about socio-economic changes in a neighborhood
b.
Profiting from socio-economic changes in an old neighborhood
c.
Building a single family residence in an area which was predominantly condominiums
d.
Inducing owners to sell by telling them an untruth about falling property values
15. A housing discrimination victim may seek recourse by all EXCEPT
a.
formal complaint to the Department of Housing and Urban Development.
b.
suit in a state court of competent jurisdiction.
c.
complaint with the state real estate commission.
d.
complaint filed with the U.S. Attorney General.
16. Among several methods of recourse, a person who is discriminated against must file a written
complaint to
a.
HUD.
b.
the state real estate commission.
c.
the local association of REALTORS® .
d.
a civil court.
17. The “Americans With Disabilities Act” deals primarily with
a.
single family residences.
b.
multi family residences.
c.
commercial properties.
d.
all real estate.
18. All of the following are true of the ADA, enacted on July 26, 1992, EXCEPT
a.
it provides access requirements and prohibits discrimination against disabled people.
b.
it affects the real estate brokerage industry in that the licensees need to determine
compliance.
c.
it requires modifications to procedures so that disabled individuals are not excluded from
regular programs.
d.
it requires alterations to the property, no matter what that cost will be.
19. The Equal Credit Opportunity Act, as amended, allows for
a.
no exceptions wherein a real estate loan is involved.
b.
no exceptions on any loans.
c.
minor exceptions wherein a real estate loan is involved.
d.
coverage of minors in regard to loans.
20. Failure to comply with the Equal Credit Opportunity Act can result in
a.
civil liability and subsequent penalties.
b.
5% of the creditors net worth in class actions.
c.
criminal penalties only.
d.
a maximum penalty of $5,000 for each individual case.
21. A law requiring lenders to have a plan to make lendable funds available for all low-income
neighborhoods it serves as well as more affluent neighborhoods is the
a.
Community Reinvestment Act.
b.
Fair Housing Act of 1968.
c.
Equal Credit Law of 1978
d.
Presidential Order of 1970.
22. The CRA statement should contain all of the following EXCEPT
a.
a map of the lender’s definition of its community.
b.
a list of credit services it offers.
c.
a copy of the public notice in its lobby.
d.
the names of all lending institutions in the area.
23. Discrimination in the availability of housing on the basis of race is prohibited by the
a.
Civil Rights Act of 1866.
b.
Fair Housing Law of 1968.
c.
both a and b.
d.
neither a nor b.
24. A real estate broker was offered a rental listing by a homeowner who stated that he would not rent to a
person of certain religious beliefs. The broker should
a.
refuse to accept the listing on these terms.
b.
accept the listing and leave it up to the owner to refuse any offers received from persons of
that religion.
c.
accept the listing and steer persons of that religion to other properties.
d.
file a complaint of discrimination against the owner.
25. Under federal law, the owner of one single-family dwelling in which the owner has resided for 10
years, who does not employ an agent and does not use discriminatory advertising, may discriminate in
the sale or rental of the property on any of the following EXCEPT
a.
religion.
b.
race.
c.
color.
d.
national origin.
26. State and local laws that restrict or prohibit discrimination in the availability of rental housing may
a.
be more restrictive than federal statutes.
b.
prohibit additional forms of discrimination.
c.
both a and b.
d.
neither a nor b.
27. The Civil Rights Act of 1866 prohibits
a.
racial discrimination.
b.
steering.
c.
block busting.
d.
discrimination for any reason.
28. All of the following are prohibited by the Fair Housing Law of 1968, as amended, EXCEPT
a.
discrimination in advertising.
b.
denial of availability of housing on the basis of religion.
c.
discrimination in terms or conditions for sale or rent.
d.
discrimination on the basis of age.
29. An amendment to the Fair Housing Law of 1968, signed by the president in 1968, prohibits
a.
discrimination on the basis of physical handicap.
b.
the offering of different loan terms by commercial lenders based on race or religion of the
loan applicant.
c.
refusal to sell, rent, or negotiate with any person.
d.
steering and blockbusting.
30. The practice of directing home seekers to particular neighborhoods based on race, color, religion, sex,
or national origin
a.
is known as steering.
b.
is prohibited by the Civil Rights Act of 1866.
c.
constitutes blockbusting.
d.
all of the above.
TRUE/FALSE
1. Inducement of panic selling in a neighborhood for financial gain is known as blockbusting.
2. The Fair Housing Law of 1968 applies to single family and multi-family housing.
3. A church that operates housing for the elderly may not restrict occupancy to members of the church
even if membership in the church is open to all persons.
4. A victim of discrimination in housing may seek enforcement of the Fair Housing Law by filing a
complaint with the state real estate department.
5. A person seeking enforcement of the Civil Rights Act of 1866 may do so by filing an action in federal
court.
6. A licensed real estate agent is offered a listing by an owner who will not sell to any person of a certain
national origin. The agent should report the owner to the real estate department.
7. A country club has several guest bedrooms which are made available to members for a nominal charge
but are not available to the general public. This is a violation of the federal fair housing laws.
8. The Americans with Disabilities Act (ADA) is a federal law giving disabled individuals the right of
access to commercial facilities open to the public.
9. The Community Reinvestment Act provides for equal credit to borrowers.
10. A tester is an individual or organization that responds to advertising and visits real estate offices to test
for compliance with fair housing laws.
11. The federal Fair Housing Law is officially known a Title VIII of the Civil Rights Act of 1968, as
amended.
12. The 1968 Fair Housing Law does not apply to an individual renting his only house without using a
broker.
13. The Americans with Disabilities Act (ADA) applies only to residential properties.
14. The Equal Credit Opportunity Act was originally passed to provide for equal credit for borrowers by
making it unlawful to discriminate against an applicant for credit based on sex or marital status.
15. A creditor may not consider an applicant’s immigration status and whether he or she is a permanent
resident of the United States.
16. The Community Reinvestment Act sets dollar amounts that lenders must set aside for lending in their
community.
17. A minority is always described as a member of the smallest group of people.
18. In evaluating a loan application, part-time income cannot be discounted on the basis of its source.
19. Violations of fair housing laws may involve fines up to $100,000 in addition to civil damages,
potential injunctions, reasonable attorney’s fees and costs.
20. The term handicapped refers to having a physical or mental impairment that substantially limits one or
more life activities, or having a record of such impairments.
COMPLETION
1. A protected class is a class of people that by law are protected from ____________________.
2. The Americans with Disabilities Act is a federal law giving individuals the right of access to
____________________ facilities open to the public.
3. Blockbusting is the illegal practice of inducing ____________________ selling in a neighborhood for
financial gain.
4. An individual posing as a potential purchaser to determine whether discrimination exists in a real
estate transaction is known as a ____________________.
5. The act of directing any group away from or to an integrated or minority neighborhood is called
____________________.
6. A situation where one or more individuals under the age of 18 are domiciled with a parent or other
person having custody is described as ____________________ status.
7. The ____________________ Amendment prohibits any state from depriving a person of life, liberty,
or property without due process of law and prohibits any state from denying any person within its
jurisdiction the equal protection of the laws.
8. The penalties for violation of federal fair housing laws include fines of not more than
____________________.
9. The 1968 Fair Housing Law provides protection against discrimination for refusing to sell or rent to
deal, or ____________________ with any person.
10. The 1968 Fair Housing Law provides protection against certain acts if they discriminate against one or
more of the____________________ classes.
MATCHING
Choose the one most appropriate answer for each.
a.
Americans with Disabilities Act (ADA)
k.
Jones v. Alfred H Mayer Company
b.
block busting
l.
marital status
c.
commercial facility
m.
minority
d.
Community Reinvestment Act (CRA)
n.
protected class
e.
CRA statement
o.
public accommodations
f.
Equal Credit Opportunity Act
p.
Shelley v. Kraemer
g.
Fair Housing Law
q.
steering
h.
familial status
r.
tester
i.
Fourteenth Amendment
s.
Thirteenth Amendment
j.
handicapped
t.
Title VIII
1. applies to federal prohibitions under the Bill of Rights to the state
2. federal fair housing law under the Civil Rights Act of 1968
3. one or more individuals being domiciled with a parent or another person having legal custody of such
individual
4. any group or member of a group that can be identified by race, color, religion, sex, or national origin
5. the illegal practice of inducing panic selling in a neighborhood for financial gain
6. the act of directing any group away from or to an integrated or minority neighborhood
7. having a physical or mental impairment that substantially limits one or more major life activities
8. law applying to single-family housing utilizing the services of a real estate broker
9. the “badge of slavery” violates the constitutional amendment
10. federal statute requiring accessibility for commercial premises
11. federal statute prohibiting discrimination in lending practices
12. federal statute prohibiting discrimination in credit transactions
13. an individual posing as a potential purchaser to determine whether discrimination exists in a real estate
transaction
14. a class of people that by law are protected from discrimination
15. the landmark case that established that any form of discrimination creates a “badge of slavery” and
violates the Thirteenth Amendment
16. the significant case in interpreting the Fourteenth Amendment as it applies to the states
17. encompasses 12 categories of retail and service business, including places of lodging, food and drink
establishments, places of public gathering, etc
18. a facility whose operations affect commerce, that are intended for nonresidential use, and is not a
facility expressly exempt from coverage under the Fair Housing Act of 1968
19. using the categories of married, unmarried,or separated
20. calls for mandatory information and some optional information that lending institutions should make
available to their customers
