COS Fair Housing & Civil Rights Requirements 3 — Questions and Answers
Question 1: Which of the following advertising statements would violate the Fair Housing Act?
- 'Two-bedroom apartment, near schools'
- 'Adult community — no children preferred' (Correct answer)
- 'Rent includes water and trash'
- 'Quiet building, professional tenants'
Correct answer: 'Adult community — no children preferred'
Advertising a preference for adults without children violates the familial status protections of the Fair Housing Act.
Question 2: What is the maximum civil penalty the HUD can impose on a first-time fair housing violator in an administrative proceeding?
- $10,000
- $16,000
- $21,663 (Correct answer)
- $50,000
Correct answer: $21,663
HUD periodically adjusts civil penalties; as of recent updates, first-time violators can face penalties up to approximately $21,663 in an administrative proceeding.
Question 3: Which organization is primarily responsible for enforcing the Fair Housing Act at the federal level?
- Department of Justice
- HUD's Office of Fair Housing and Equal Opportunity (FHEO) (Correct answer)
- Federal Housing Finance Agency
- Consumer Financial Protection Bureau
Correct answer: HUD's Office of Fair Housing and Equal Opportunity (FHEO)
HUD's Office of Fair Housing and Equal Opportunity (FHEO) is the primary federal agency responsible for administering and enforcing the Fair Housing Act.
Question 4: An owner of a single-family home who does not use a real estate broker or discriminatory advertising is exempt from which Fair Housing Act prohibition?
- Disability discrimination only
- All protected class discrimination
- Most sale and rental prohibitions (Correct answer)
- Advertising restrictions only
Correct answer: Most sale and rental prohibitions
The 'Mrs. Murphy' exemption allows owner-occupants of buildings with four or fewer units, or single-family homeowners selling/renting without a broker, to be exempt from most Fair Housing prohibitions.
Question 5: A tenant with bipolar disorder asks to pay rent on the 5th instead of the 1st due to when their disability benefits arrive. This request is best described as:
- An unreasonable demand that can be denied
- A reasonable accommodation that must be granted if it doesn't impose undue hardship (Correct answer)
- A lease modification requiring a fee
- A policy exception only management companies can approve
Correct answer: A reasonable accommodation that must be granted if it doesn't impose undue hardship
Changing the rent due date to align with disability benefit payment schedules is a reasonable accommodation that typically does not impose undue financial or administrative burden.
Question 6: Which of the following is NOT one of the seven federally protected classes under the Fair Housing Act?
- Religion
- Source of income (Correct answer)
- Disability
- Familial status
Correct answer: Source of income
Source of income is not a federally protected class under the Fair Housing Act, although many states and localities have added it as a protected class.
Question 7: Blockbusting is best defined as:
- Charging excessive security deposits in changing neighborhoods
- Inducing homeowners to sell by claiming that minority groups are moving into the neighborhood (Correct answer)
- Refusing to make mortgage loans in certain geographic areas
- Posting 'For Sale' signs in violation of local ordinances
Correct answer: Inducing homeowners to sell by claiming that minority groups are moving into the neighborhood
Blockbusting is the illegal practice of inducing panic selling by suggesting that the entry of a minority group into a neighborhood will reduce property values.
COS Fair Housing & Civil Rights Requirements 3
Which of the following advertising statements would violate the Fair Housing Act?