5.2 Federal Fair Housing Law and Protected Classes
Key Takeaways
- The federal Fair Housing Act protects seven classes: race, color, religion, national origin, sex, familial status, and disability.
- Steering, blockbusting, and redlining are prohibited even when the licensee believes they are helping a client.
- Disability protections require reasonable accommodations (rule changes) and allow reasonable modifications (physical changes), with cost responsibility differing between the two.
- The 1968 race protection (and the 1866 Civil Rights Act) has essentially no exemptions; the limited Mrs. Murphy and single-family-owner exemptions never excuse race discrimination or discriminatory advertising.
- HUD enforces the Act; complaints generally must be filed within one year, and discriminatory advertising is illegal regardless of any sales exemption.
The federal Fair Housing Act and protected classes
The Fair Housing Act of 1968 (Title VIII of the Civil Rights Act), as amended in 1974 and 1988, prohibits discrimination in residential housing transactions. Memorize the seven federal protected classes:
- Race (also covered by the 1866 Civil Rights Act, no exemptions)
- Color
- Religion
- National origin
- Sex (includes gender)
- Familial status (families with children under 18, pregnant persons, those securing custody) - added 1988
- Disability (handicap) - added 1988
A memory aid is R-R-N-C-S-F-D or the phrase covering race, religion, national origin, color, sex, familial status, and disability. Note that age, marital status, sexual orientation, and source of income are not federal protected classes, though many state and local laws add them. The exam tests the federal list unless the question names a state.
Prohibited practices
| Practice | Definition | Example |
|---|---|---|
| Steering | Channeling buyers toward or away from areas based on a protected class | "You'd be more comfortable in this neighborhood" |
| Blockbusting (panic selling) | Inducing sales by claiming protected-class entry will lower values | "Sell now before prices drop" |
| Redlining | Denying or pricing loans/insurance by area demographics | Lender refuses loans in a minority area |
Other violations: refusing to deal, setting different terms, false "not available" statements, discriminatory advertising, and denying membership in a multiple listing service. Intent is not required; a practice with a discriminatory effect can violate the Act.
The Civil Rights Act of 1866 and the Jones v. Mayer Rule
The Civil Rights Act of 1866 is the oldest and bluntest fair-housing law: it bars all racial discrimination in property transactions with no exemptions. The Supreme Court confirmed its modern reach in Jones v. Alfred H. Mayer Co. (1968), holding that it prohibits private as well as government racial discrimination. This is why the "Mrs. Murphy" and single-family owner exemptions, even when they apply, never excuse discrimination based on race.
Layer the laws like this: the 1866 Act covers race with no exceptions; the Fair Housing Act of 1968/1988 adds the other six protected classes but allows narrow exemptions; many state and local laws add further classes such as sexual orientation, marital status, age, or source of income. When a federal question lists only the seven classes, age and marital status are distractors.
Familial Status, the 55+ Exemption, and ADA vs. FHA
Familial status protects families with children under 18, pregnant persons, and those obtaining custody. The major carve-out is qualified "housing for older persons": communities can lawfully exclude children if they meet the 55+ rule (at least 80% of units have one occupant 55 or older, with published policies) or are strictly 62-and-older housing.
Do not confuse the Fair Housing Act (residential housing discrimination) with the Americans with Disabilities Act (ADA) (access to commercial public accommodations like offices and stores). The FHA governs a tenant's reasonable accommodation in an apartment; the ADA governs wheelchair access to a retail storefront. A question about a renter's service animal is FHA; a question about a store's accessible restroom is ADA.
A licensee tells a family with three young children that a particular condo "isn't really set up for kids" and only shows them units in a different complex. Which violation is this?
Disability protections, exemptions, advertising, and enforcement
Reasonable accommodation vs. reasonable modification
Disability protections require housing providers to allow two distinct things, and the exam loves the cost distinction.
| Accommodation | Modification | |
|---|---|---|
| What it is | A change to a rule, policy, or service | A physical change to the structure |
| Example | Waiving a no-pets rule for a service animal; reserved parking | Installing a ramp or grab bars; widening a door |
| Who pays | The housing provider | The tenant (in private housing) |
| Restore on move-out? | N/A | Tenant may have to restore interior changes if reasonable |
Service and assistance animals are not pets; no pet deposit may be charged and a no-pets policy must be waived. New multifamily buildings (four-plus units, first occupancy after March 1991) must also meet design and accessibility requirements.
Narrow exemptions (race is never exempt)
The Act has limited exemptions, and they are heavily tested as traps:
- Single-family home sold or rented by an owner who owns three or fewer such homes, without a broker and without discriminatory advertising.
- "Mrs. Murphy": owner-occupied dwelling with four or fewer units, no broker, no discriminatory advertising.
- Housing operated by religious organizations or private clubs for members (limited).
- 55+ senior housing is exempt from familial-status rules if it meets the older-persons criteria.
Two hard limits: (1) the 1866 Civil Rights Act bars all racial discrimination with no exemptions, so race is never excused; and (2) every exemption is lost the moment a broker is used or discriminatory advertising appears.
Advertising and enforcement
Discriminatory advertising is illegal in all transactions, even ones otherwise exempt. Avoid words signaling a preference ("adult building," "perfect for a Christian family," "no kids").
- Enforcement: the U.S. Department of Housing and Urban Development (HUD) investigates.
- Filing deadline: a complaint to HUD generally must be filed within one year; a federal lawsuit may be filed within two years.
- Remedies include injunctions, actual and punitive damages, and civil penalties.
A tenant who uses a wheelchair asks the landlord to allow a ramp at the entrance and to waive the building's strict no-pets rule for a service dog. Under the federal Fair Housing Act, what is correct?