© 2008 by south-western, cengage learning chapter 21 charles j. jacobus thomas e. gillett

© 2008 by South-Western, Cengage Learning

Chapter 21Chapter 21

Charles J.Jacobus

Thomas E.Gillett


Georgia Real EstateGeorgia Real EstateAn Introduction to the Profession An Introduction to the Profession

Seventh EditionSeventh Edition

Chapter 21

Fair Housing, ADA, Equal Credit, and Community

Reinvestment


Fifth AmendmentNo one can have their property taken without court proceedings

Expanded to include discrimination


Thirteenth Amendment

Prohibits slavery

Jones v. Alfred H. Mayer Company


Fourteenth Amendment

States must provide equal protection under the law for all

Shelley v. Kraemer


““All citizens of the United All citizens of the United States shall have the States shall have the

same right in every State same right in every State and Territory, as is and Territory, as is

enjoyed by white citizens enjoyed by white citizens thereof to inherit, thereof to inherit,

purchase, lease, sell, purchase, lease, sell, hold, and convey real and hold, and convey real and

personal property.”personal property.”


Creates protected classesRace

Color

Religion

National Origin

Sex (1974)

Handicap (1988)

Familial Status (1988)


3 Ways violation can be proven

Intentional discrimination

Regulation which is discriminatory

Failure to “reasonably accommodate”

Newest Amendments (1988)

Handicapped

Familial Status


Physical or mental impairment which limits one or more major life activates

Having a record of impairment

Being regarded as having an impairment


IncludesRecovering drug addicts

HIV /Aids

ExcludesCurrent illegal drug use

Threat to health, safety, & property of others


Legal custody of children under the age of 18

Pregnant women


1. Housing determined by HUD to be designed specifically for the elderly.

2. Housing occupied by person age 62 or older.

3. Housing with at least 80% of units occupied by at least one person 55 or older.


Fines

$50,000 for first offense

$100,000 subsequent

Civil damages, potential injunctions, attorney’s fees, & costs


Refusing to sell or rent to, deal with, or negotiate with any person.

Discriminating in the terms or conditions for buying or renting housing.

Discriminating by advertising that housing is available only to persons of a certain race, color, religion, sex or national origin, those who are not handicapped, or adults only.


Denying that housing is available for inspection, sale, or rent when it really is available.

Denying or making different terms or conditions for home loans by commercial lenders.

Denying to anyone the use or participation in any real estate services, such as brokers’ organizations, multiple listing services, or other facilities related to the selling or renting of housing.

Steering or block-busting.


Directing home buyers / tenants to a particular neighborhood / units based on any of the protected categories

Inducing panic selling in a neighborhood for financial gain


Single-family housing owned by a private individual when:

Broker is used

Discriminatory advertising is used

Single family home not owned by

a private individual


Single-family houses owned by a private individual who:

owns more than 3 homes

in any 2 year period sells more than 1 home where they were not the most recent resident.


Multi-family dwelling of 5 or more units

Any multi-family unit dwelling if the owner does not reside in one of the units


Sale or rental of a single family home owned by a private individual who owns fewer than 3 homes if:

No broker is used

No discriminatory advertising

No more than 1 home is sold

in a 2 year period where

the owner was not the most

recent resident


Rental of rooms or units in owner occupied 2 – 4 family dwellings where discriminatory advertising is not used

Religious organizations

Private clubs


File a written complaint with HUD

File court action

File complaint with the U.S. Attorney General


Enforcement by Private Persons

Agent's Duties

Testers

State Laws


Commercial PropertyCommercial Property

Access requirements & prohibits Access requirements & prohibits discriminationdiscrimination


Race

Color

Religion

National origin

Sex

Marital status

Age

Receipt of income from public assistance programs

Prohibits discrimination in a credit transaction based on:


Prohibited requests:Spouse information

Marital status

Income: child support or separate maintenance

Family intentions

Race, color, religion, national origin


Evaluating applicationsAge

Children

Part-Time Income

Alimony & Child Support

Credit History

Immigration Residency

Sex

Martial Status


Credit Denial“Notice of Adverse Action”

Penalties: Civil liability for damages

Individual: $10,000 Class Action: $500,000 or 1% of net worth

Appraisal Report


Regulated financial institutions must Regulated financial institutions must serve the needs of the community serve the needs of the community


Key TermsKey Terms

ADA

Block busting

CRA

ECOA

Familial status

Handicapped

Protected class

Steering

Tester

© 2008 by south-western, cengage learning chapter 21 charles j. jacobus thomas e. gillett

Documents

cengage learning chapter

cengage learning fines

impairment slide

discrimination slide

gillett slide

kraemer slide

community reinvestment

fair housing