6.1 Federal Fair Housing and ADA

The Foundation: Two Federal Laws

Fair housing on the exam rests on two laws that work together. The Civil Rights Act of 1866 was the first; it prohibits all discrimination based on race or color in any property transaction. It has no exemptions and is enforced through federal court. The U.S. Supreme Court upheld it in Jones v. Alfred H. Mayer Co. (1968).

The Fair Housing Act of 1968 (Title VIII of the Civil Rights Act of 1968) is broader. It bars discrimination in the sale, rental, financing, and advertising of housing. As originally passed it covered four classes: race, color, religion, and national origin. Sex was added in 1974, and familial status and disability (handicap) were added by the Fair Housing Amendments Act of 1988 (effective March 12, 1989).

The Seven Protected Classes

Memorize all seven for the exam:

Familial status protects households with children under 18, pregnant persons, and anyone securing custody of a minor. Disability covers physical and mental impairments; the Act requires landlords to allow reasonable modifications (tenant pays) and make reasonable accommodations in rules (such as permitting a service animal despite a no-pets policy).

A frequent exam distinction: familial status does not protect against age discrimination generally; rather, it protects households with children. A development can lawfully exclude children only if it qualifies as housing for older persons under the Housing for Older Persons Act (HOPA) — meaning either all occupants are 62 or older, or at least 80 percent of the units have one occupant who is 55 or older with policies demonstrating intent to house older persons. Outside that exemption, refusing to rent to a family with children violates the Act.

Exemptions (and Their Limits)

The Fair Housing Act has narrow exemptions. The famous one is the "Mrs. Murphy" exemption: an owner-occupied building of four or fewer units is exempt from some provisions. A single-family home sold or rented by the owner is also exempt if the owner owns three or fewer such homes, uses no real estate licensee, and runs no discriminatory advertising. Housing operated by religious organizations and private clubs may limit occupancy to members.

The critical trap: no exemption ever permits race discrimination, because the Civil Rights Act of 1866 still applies with no exemptions. An exemption also vanishes the moment a real estate licensee is involved or discriminatory advertising is used. Because a licensee is involved in nearly every exam scenario, a salesperson can essentially never lawfully discriminate.

Prohibited Acts

Three practices are tested constantly:

• Steering — directing buyers toward or away from neighborhoods based on a protected class (e.g., showing a family only homes in areas matching their ethnicity).
• Blockbusting (panic selling) — inducing owners to sell by suggesting a protected group is moving in and values will fall.
• Redlining — a lender or insurer denying or pricing loans based on the racial or ethnic makeup of a neighborhood rather than the borrower's qualifications.

Also prohibited: refusing to deal, setting different terms, falsely denying availability, and discriminatory advertising. A licensee must comply even when the client directs the discrimination — if a seller instructs the agent not to show the home to members of a protected class, the agent must refuse and should withdraw rather than carry out the unlawful instruction. "The client told me to" is never a defense on the exam.

Watch the difference between steering and lawfully answering questions: a licensee may give objective, factual data (school-district boundaries, tax rates, public crime statistics from official sources) but may not characterize neighborhoods by protected-class composition or volunteer opinions about "the kind of people" who live there.

ADA, Advertising, and HUD Enforcement

The Americans with Disabilities Act (ADA) of 1990 governs accessibility in commercial and public-accommodation spaces (offices, model homes, retail). Title III requires removal of architectural barriers where readily achievable. Separately, the Fair Housing Act sets design-and-construction standards for covered multifamily housing built for first occupancy after March 13, 1991 (accessible routes, usable doors, reinforced bathroom walls).

Advertising may not state a discriminatory preference or limitation. Phrases like "adult building," "perfect for a Christian family," or "no children" are violations. Equal Housing Opportunity logos and slogans signal compliance.

Enforcement runs through the U.S. Department of Housing and Urban Development (HUD). A complainant has one year to file an administrative complaint with HUD, or two years to file suit in federal court. Since the 1988 amendments, HUD administrative law judges can award actual damages, civil penalties, and injunctive relief; DOJ can pursue pattern-or-practice cases with penalties.

Florida Note

Florida's Fair Housing Act mirrors the same seven federal protected classes and adds no extra protected classes at the state level. However, some local ordinances (e.g., in certain Florida counties and cities) add classes such as sexual orientation, gender identity, age, or marital status. On the state license exam, answer with the federal seven unless a local ordinance is specified.