1. Principles of California Real Estate
Lesson 14:
Civil Rights and
Fair Housing

2. Introduction Federal and state laws prohibit discrimination:
based on race, religion, sex, and other characteristics
and apply to most real estate transactions

3. Introduction Laws vary in terms of:
catagories of groups protected, and
types of activities and transactions that are covered

4. Federal Antidiscrimination Laws Civil Rights Act of 1866
prohibits discrimination on the basis of race or color
applies to all types of real estate transactions:
residential or commercial
improved or unimproved

5. Federal Antidiscrimination Laws Civil Rights Act of 1866
The act was passed right after the Civil War, but not widely used until after 1968 Supreme Court decision Jones v. Mayer :
Court held that the act prohibits “all racial discrimination, private or public, in the sale and rental of property.”

6. Civil Rights Act of 1866 Remedies
Remedies available to a plaintiff who wins a lawsuit under the 1866 act include:
injunction (an order to stop a violation)
actual damages (to compensate plaintiff)
punitive damages (an additional amount as a penalty)

7. Federal Antidiscrimination Laws Civil Rights Act of 1964
Civil Rights Act of 1964 prohibits discrimination:
based on race, color, religion, or national origin
in programs and activities that receive financial assistance from the federal government

8. Federal Antidiscrimination Laws Civil Rights Act of 1964
However, exclusions for the FHA and VA loan programs limited the impact of this law on housing discrimination.

9. Federal Antidiscrimination Laws Civil Rights Act of 1968
Title VIII of the Civil Rights Act of 1968 is better known as the Federal Fair Housing Act.

10. Federal Antidiscrimination Laws Civil Rights Act of 1968
Title VIII of the Civil Rights Act of 1968 is better known as the Federal Fair Housing Act.
Applies to sale or lease of:
residential property
vacant land to be used for residential construction

11. Federal Fair Housing Act Scope of law
In residential transactions, Fair Housing Act also prohibits discrimination in:
advertising
lending
brokerage
other services

12. Federal Fair Housing Act Scope of law
Fair Housing Act prohibits discrimination based on:
race
color
religion
sex
national origin
disability
familial status

13. Fair Housing Act Exemptions
While the Federal Fair Housing Act applies to the majority of real estate transactions, four types of transactions are exempt from the law’s provisions:
for sale by owner
owner-occupied rental
religious organizations
private clubs

14. Fair Housing Act Exemptions: For sale by owner
Law doesn’t apply to a single-family home rented or sold by a private individual if:
she owns no more than 3 such homes
no discriminatory advertising used
no real estate broker used in transaction
If owner isn’t the most recent occupant, she may use this exemption only once every 24 months

15. Fair Housing Act Exemptions: Owner-occupied rental
Law doesn’t apply to rental of a room or unit in a dwelling with up to four units if:
owner resides in one of the units
no discriminatory advertising used
no real estate broker used in transaction

16. Fair Housing Act Exemptions
Religious organizations may limit occupancy to members when dealing with their own property.

17. Fair Housing Act Exemptions
Religious organizations may limit occupancy to members when dealing with their own property.
Lodgings belonging to private clubs may give preference to their own members, if the lodgings are not open to the general public.

18. Fair Housing Act Exemptions
Fair Housing Act always applies to any transaction involving a real estate agent.
Law’s exemptions aren’t permitted when an agent is involved.
An agent may never discriminate.

19. Fair Housing Act Exemptions
Fair Housing Act always applies to any transaction involving a real estate agent.
Law’s exemptions aren’t permitted when an agent is involved.
An agent may never discriminate.
Also, the act’s exemptions almost never apply to transactions in California.
State laws don’t include these exemptions.

20. Fair Housing Act Prohibited Actions
Refusal to rent or sell residential property after receiving a good faith offer.

21. Fair Housing Act Prohibited Actions
Refusal to rent or sell residential property after receiving a good faith offer.
Refusal to negotiate for the sale or rent of residential property.

22. Fair Housing Act Prohibited Actions
Refusal to rent or sell residential property after receiving a good faith offer.
Refusal to negotiate for the sale or rent of residential property.
Any other action that would make residential property unavailable.

23. Fair Housing Act Prohibited Actions
Discriminating in terms or conditions of sale or rental of residential property.

24. Fair Housing Act Prohibited Actions
Discriminating in terms or conditions of sale or rental of residential property.
Discriminatory advertising that indicates a preference or limitation.

25. Fair Housing Act Prohibited Actions
Discriminating in terms or conditions of sale or rental of residential property.
Discriminatory advertising that indicates a preference or limitation.
Representing that property is not available for inspection, rent, or sale when it is in fact available.

26. Fair Housing Act Prohibited Actions
Federal Fair Housing Act also prohibits:
steering
blockbusting
redlining

27. Prohibited Actions Steering
Steering: Channeling prospective buyers or tenants to or away from particular neighborhoods based on their race, ethnicity, or other protected characteristics.

28. Prohibited Actions Blockbusting
Blockbusting: When someone tries to induce homeowners to sell by predicting that:
members of minority groups will be moving into the neighborhood
property values and quality of life will suffer as a result
Also known as panic selling.

29. Prohibited Actions Redlining
Redlining: When a lender refuses to make mortgage loans in a particular neighborhood because of its racial or ethnic composition.
The prohibition against redlining is enforced through the Home Mortgage Disclosure Act.

30. Fair Housing Act
1988 amendments to Federal Fair Housing Act added disability and familial status as additional protected categories covered by the law.
“Disability” refers to:
physical and mental impairments that substantially limit one or more major life activities, including HIV/AIDS, mental illness and alcoholism.

31. Disability Reasonable accommodations
Under the law, a landlord must:
make reasonable exceptions to rules for disabled tenants, and
allow disabled tenants to make reasonable modifications at their own expense.

32. Disability Reasonable accommodations
Under the law a landlord must:
make reasonable exceptions to rules for disabled tenants, and
allow disabled tenants to make reasonable modifications at their own expense
Landlord isn’t required to modify property for tenant, and tenant can be required to restore property to original condition when tenancy ends.

33. Disability Wheelchair accessibility
Law’s wheelchair access rules apply to new construction of residential buildings (built since 1988) with four or more units.
Entryways, hallways, kitchens, and bathrooms must be designed to accommodate wheelchairs.
If building has an elevator, units above ground floor must accommodate wheelchairs.

34. Fair Housing Act Familial status
Familial status refers to adults who have, or will have, children under 18 living with them.

35. Fair Housing Act Familial status
Familial status refers to adults who have, or will have, children under 18 living with them.
It’s generally illegal to refuse to rent or sell to someone because:
she is pregnant
he or she has children
he or she is about to adopt or gain custody of children

36. Familial Status Housing for older persons
“Housing for older persons” is exempt from the prohibition against discrimination against families with children.

37. Familial Status Housing for older persons
“Housing for older persons” is exempt from the prohibition against discrimination against families with children.
Determining whether a property is intended for older persons involves consideration of:
design,
facilities, and
advertising.

38. Fair Housing Act Housing for older persons
To qualify as housing for older persons, a property must have been:
Developed under a government program to assist the elderly.
Intended for and solely occupied by people age 62 and older.
Intended for older persons and at least 80% of the units are occupied by at least one person 55 years or older.

39. Fair Housing Act Enforcement
A person who feels she has been discriminated against in violation of the Federal Fair Housing Act may:
file a complaint with HUD’s Office of Fair Housing and Equal Opportunity, or
file a lawsuit in court.

40. Fair Housing Act Enforcement
Complaint must be filed within one year of the discrimination and lawsuit must be filed within two years.
If a case is found to involve a “pattern or practice” U.S. Attorney General may file federal suit.
HUD may also refer complaints to the California Department of Fair Employment and Housing, since state laws are similar.

41. Enforcement Administrative hearing
If HUD is unable to negotiate an agreement between the parties in a dispute, an administrative hearing will be held.
In a hearing, HUD attorneys act on behalf of the complainant, and an administrative law judge will decide the case.

42. Enforcement Penalties
If violation found, an administrative law judge or the courts might order:
an injunction against discriminatory activity,
affirmative steps to correct a violation,
compensatory and/or punitive damages, and/or
a civil penalty paid to the federal government.

43. Summary Federal Antidiscrimination Laws
Civil Rights Act of 1866
Civil Rights Act of 1964
Federal Fair Housing Act
Steering
Blockbusting
Redlining
Disability
Familial status

44. Other Federal Laws Equal Credit Opportunity Act (ECOA)
Home Mortgage Disclosure Act
Americans with Disabilities Act

45. Other Federal Laws Equal Credit Opportunity Act
ECOA applies to all consumer credit transactions, i.e. credit used for personal, family, or household purposes, including residential mortgage loans.

46. Other Federal Laws Equal Credit Opportunity Act
The law prohibits lenders, brokers and others from discriminating against credit applicants on the basis of:
race color
religion national origin
sex marital status
age receipt of public assistance

47. Other Federal Laws Home Mortgage Disclosure Act
HMDA is designed to detect redlining.
Requires larger residential lenders to disclose:
number and type of loans made
loan amounts
location of the properties

48. Other Federal Laws Home Mortgage Disclosure Act
HMDA is aimed at detecting redlining.
Requires larger residential lenders to disclose:
number and type of loans made
loan amounts
location of the properties
Government will investigate lenders who have made no loans or few loans in certain neighborhoods.

49. Other Federal Laws Americans with Disabilities Act
ADA (1992) is intended to ensure that people with disabilities have equal access to all public accommodations.
Disability: Any physical or mental impairment that substantially limits one or more major life activities.
Public accommodation: A public or private entity with facilities open to the public.
Examples: real estate offices, banks, stores

50. Americans with Disabilities Act Requirements
If “readily achievable” a public accommodation must:
remove architectural and communications barriers
provide auxiliary aids and services
New commercial construction must be accessible to the disabled, unless structurally impractical.

51. Summary Other Federal Laws
Equal Credit Opportunity Act
Home Mortgage Disclosure Act
Americans with Disabilities Act
Disability
Public accommodation

52. State Antidiscrimination Laws
California’s antidiscrimination laws include:
the Unruh Civil Rights Act
the Fair Employment and Housing Act
the Housing Financial Discrimination Act
the Real Estate Law and regulations

53. State Antidiscrimination Laws Unruh Civil Rights Act
Unruh Act entitles everyone to full use of services provided by a business establishment, regardless of:
race
color
religion
ancestry
national origin
sex
disability
medical condition
sexual orientation
marital status
age*
familial status*
*Additional categories for housing transactions

54. State Antidiscrimination Laws Unruh Civil Rights Act
In addition to all the previous protected categories, housing-related transactions also include protections against discrimination on the basis of age or familial status (except for qualified senior citizen housing).

55. Unruh Act Business establishments
All business establishments are subject to the Unruh Act.

56. Unruh Act Business establishments
All business establishments are subject to the Unruh Act.
This includes:
real estate brokerages and licensees
apartment buildings
condominium and homeowner associations
real estate developments

57. Unruh Act Senior citizen developments
Although the Unruh Act generally prohibits “No children” rules, there are exceptions for qualified senior citizen developments.
Exception:
may require at least one member of each household to be 55 or older, with some exceptions, and
may exclude anyone younger than 45.

58. Unruh Act Penalties Violators of the Unruh Act may have to pay:
the injured party’s actual damages and attorney’s fees, and
up to three times the amount of actual damages or $4,000, whichever is more.

59. State Antidiscrimination Laws Fair Employment and Housing Act
Prohibits housing discrimination based on:
national origin
ancestry
familial status
source of income
disability
race
color
religion
sex
sexual orientation
marital status
Also called the Rumford Act.

60. Fair Employment and Housing Act Prohibitions
Prohibits discrimination in sale, leasing, or financing of any type of housing.
Applies to real estate agents and property managers as well as sellers and landlords.

61. Fair Employment and Housing Act Prohibitions
Prohibits discrimination in sale, leasing, or financing of any type of housing.
Applies to real estate agents and property managers as well as sellers and landlords.
Unlawful for seller or landlord to ask about the race, religion, or other protected characteristic of a buyer or tenant, but they may verify identity and financial capacity.

62. Fair Employment and Housing Act Exemptions
The act does not apply to accommodations operated by nonprofit religious, fraternal, or charitable organizations.

63. Fair Employment and Housing Act Exemptions
The act does not apply to accommodations operated by nonprofit religious, fraternal, or charitable organizations.
It also does not apply to rental of part of a single-family, owner-occupied home to a boarder.

64. Fair Employment and Housing Act Enforcement
Housing discrimination complaints may be submitted to the Department of Fair Employment and Housing.
The Department will investigate the complaint and issue an accusation and hold a hearing, as necessary.
The case may also be heard in superior court.

65. Fair Employment and Housing Act Enforcement
If found guilty, the violator may have to:
sell or lease the property or similar property to the injured party,
pay actual damages to the injured party, and/or
pay a civil penalty to the state.
The superior court may award punitive damages instead of civil penalties.

66. State Antidiscrimination Laws Housing Financial Discrimination Act
Prohibits residential lenders from:
discriminating on the basis of neighborhood characteristics
considering neighborhood’s racial, ethnic, religious, or national origin composition
discriminating based on borrower’s race, color, religion, sex, marital status, national origin, or ancestry.
Also called the Holden Act.

67. State Antidiscrimination Laws Real Estate Law
California’s Real Estate Law and the Commissioner’s regulations also prohibit discrimination by real estate licensees.

68. State Antidiscrimination Laws Real Estate Law
California’s Real Estate Law and the Commissioner’s regulations also prohibit discrimination by real estate licensees.
Any violation of federal or state fair housing or civil rights laws is grounds for disciplinary action under the Real Estate Law.
Real Estate Commissioner could revoke or suspend the violator’s license.

69. Discriminatory Restrictive Covenants
Covenants prohibiting sale or lease of a property to non-whites or non-Christians were once common.
1948 U.S. Supreme Court decision Shelley v. Kraemer :
Unconstitutional for state or federal courts to enforce racially restrictive covenants.

70. Discriminatory Restrictive Covenants
This type of covenant may still appear in the chain of title of some older properties.
Such a covenant does not invalidate the deed, although the covenant itself is unenforceable.
The conveyance can proceed, but the restriction has no effect.

71. Summary State Laws and Restrictive Covenants
Unruh Civil Rights Act
Fair Employment and Housing Act
Housing Financial Discrimination Act
Real Estate License Law
Discriminatory restrictive covenants