August 2008 Coach's Quiz

We have given you five rules on complying with fair houing law relating to source of income. Now let's look at how the rules might apply in the real world. Take the COACH'S QUIZ to see what you have learned.

INSTRUCTIONS: Each of the following questions has only one correct answer. On a separate piece of paper, write down the number of each question, followed by the answer you think is correct—for example, 1)b, 2)a, and so on.

COACH'S TIP: The correct answers (with explanations) follow the quiz. Good luck!

QUESTION #1

Your community is located in a state that bans discrimination based on lawful source of income, so you must accept any prospect who receives government assistance. True or false?

1. True.

2. False.

QUESTION #2

Your state or local fair housing law bans discrimination based on source of income, which means you must accept any prospect with a Section 8 housing voucher who otherwise meets your screening criteria. True or false?

1. True.

2. False.

QUESTION #3

Last month, your community received inquiries from four prospects who have Section 8 housing vouchers. One of the prospects has children. But you tell all of the prospects that your community does not accept Section 8 housing vouchers. A few weeks later, a friend asks you about the availability of a unit for her daughter, who receives Section 8 housing assistance. You've known the friend and her family a long time, so you rent her a unit. Which of the following is true?

1. Your actions could lead to fair housing trouble only if your community is subject to state or local laws banning discrimination based on source of income.

2. Your actions could lead to fair housing trouble whether or not your community is subject to state or local laws banning discrimination based on source of income.

3. Your actions could not lead to fair housing trouble, because you had no intent to discriminate against the four prospects.

QUESTION #4

Your community is subject to state or local laws banning discrimination based on source of income. One of your residents receives alimony and child support, but you heard that her ex-husband was laid off, and you are concerned that she may fall behind on her rent payments. Although you generally allow residents to mail rental payments by check, you want to require this resident to bring her rent payments to the office in cash at the beginning of each month to ensure prompt payment. You have a right to ensure that residents will pay their rent on time, so you may impose this condition without violating fair housing law. True or false?

1. True.

2. False.

Coach's Answers & Explanations

QUESTION #1

Correct answer: b

Reason: Rule #4 applies here:

Rule #4: Reject Prospects Who Can't Meet Screening Criteria

State or local laws that forbid discrimination based on source of income generally prevent you from rejecting a prospect solely because of the source of his income. But they do not require you to accept a prospect getting financial assistance, if you have other nondiscriminatory reasons to reject him, such as a criminal record, as long as you apply that policy consistently to all applicants.

Wrong answer explained:

1. You do not have to accept an applicant who receives financial assistance, if he fails to meet your other legitimate screening criteria.

QUESTION #2

Correct answer: b

Reason: Rule #1 applies here:

Rule #1: Determine if State or Local Laws Ban Source-of-Income Discrimination

Even if your community is subject to state or local laws that ban discrimination based on source of income, your community may not be required to accept Section 8 housing vouchers. The laws vary, depending on what language was used in the law and how the courts have interpreted it. Have your attorney explain exactly what is covered under your state or local law, and ask her to keep you advised if anything changes.

Wrong answer explained:

1. Many states and localities have adopted some form of protection for applicants against discrimination based on source of income, but some of them specifically exclude Section 8 housing vouchers.

QUESTION #3

Correct answer: b

Reason: Rules #2 & #3 apply here:

Rule #2: Don't Reject Prospects Solely Based on Source of Income

Rule #3: Apply Screening Policies Consistently

If your state or local laws include Section 8 housing vouchers within fair housing protections, you may not reject applicants solely because they have Section 8 vouchers. But even if your community is not subject to state or local laws banning discrimination based on source of income, you risk a fair housing complaint if you apply different screening criteria to people you know than you do to families with children, who are protected under federal law.

Wrong answers explained:

1. Consistency is key in complying with fair housing law. By rejecting the family—but not the friend's daughter—because of the voucher, you could be accused of discrimination based on familial status under federal fair housing law.

2. You could still get into fair housing trouble even if you didn't intend to illegally discriminate against the four prospects, when you decided to make an exception for your friend's daughter.

QUESTION #4

Correct answer: b

Reason: Rule #5 applies here:

Rule #5: Don't Treat Residents Differently Based on Source of Income

To comply with state or local law, your community must refrain from discrimination based on source of income not only during the application process but also throughout the tenancy. You risk a fair housing complaint if you apply more stringent payment requirements on the resident than on other residents based solely on her source of income.

Wrong answer explained:

1. Fair housing protections based on source of income do not stop with the application process, so you may not treat residents differently or apply your rules and policies more strictly because of the source of their income.