What is steering, blockbusting, and discriminatory advertising in the context of fair housing violations?
Steering is channeling people toward or away from properties based on protected class (race, religion, national origin, disability, familial status). Blockbusting is inducing panic selling by suggesting an influx of minorities will devalue the property. Discriminatory advertising uses coded language or images that discourage protected classes from applying.
Key Takeaways
- Steering is channeling people toward or away from properties based on protected class (race.
- Blockbusting is inducing panic selling by suggesting an influx of minorities will devalue the property.
- Discriminatory advertising uses coded language or images that discourage protected classes from applying.
Property Management on the Real Estate Exam
Fair housing violations are federal crimes with serious civil and criminal penalties. Property managers must understand these prohibited practices to avoid liability and comply with law. These are heavily tested because they are foundational to legal property management and professional ethics.
Understanding Property Management: Key Concepts
What It Means
The Fair Housing Act (federal) and state/local fair housing laws prohibit discrimination based on race, color, religion, national origin, sex, familial status, and disability. Property managers and landlords cannot discriminate in tenant selection, rent amounts, lease terms, management practices, or housing services. Understanding specific prohibited practices is essential for compliance.
Steering occurs when a property manager or agent guides a person toward or away from specific properties based on protected class membership. For example, telling an African American applicant that the building is full or not accepting applications while accepting applications from white applicants is steering. Steering can also occur when a manager discourages a family with children from applying to certain buildings or neighborhoods, or steers disabled applicants away from accessible units. The manager's intent is irrelevant; if the effect is to limit housing choices based on protected class, it is illegal steering.
Blockbusting (also called panic peddling) involves inducing property owners to sell by suggesting that minority members moving into the neighborhood will cause property values to decline. This practice is used to generate real estate commissions or cause panic sales. Statements like 'an influx of minorities is coming to your neighborhood, you should sell now before values drop' constitute blockbusting. It is illegal whether done by agents, property managers, or landlords.
Rights and Protections
Discriminatory advertising uses coded language or images that discourage protected classes from applying. Advertisements stating 'young family preferred' discriminates against seniors with familial status issues. Phrases like 'no kids,' 'retirees only,' or 'wheelchair users need not apply' are explicitly discriminatory. Images showing only persons of one race, or religious symbols in advertising, can suggest discrimination. Even subtle language like 'family-oriented community' or 'near excellent schools' can be problematic if used to discourage families from certain buildings.
Property managers must also ensure reasonable accommodations for disabled persons, including allowing service animals, permitting modifications to units, and providing accessible facilities. These accommodations must be provided even if the lease prohibits pets or modifications. Failure to accommodate disabilities is a violation. Property managers must apply tenant selection criteria uniformly to all applicants, maintain consistent rent policies, and enforce lease violations consistently regardless of the tenant's protected class.