FHCE 3300 1nd Edition Lecture 25Outline of Last Lecture I. Rental AssistanceII. Funding Amount by Program TypeIII. Public HousingIV. Housing Choice VouchersA. How They WorkB. Case Example and Policy Implications V. Rental Assistance ImpactVI. Rental Assistance Problems VII. Rental Assistance GapOutline of Current Lecture I. Federal Housing Policy and DiscriminationA. Racial RedliningB. Race-restrictive CovenantsC. BlockbustingII. Impact of Housing DiscriminationIII. Home Mortgage Disclosure ActIV. Fair HousingV. Fair Housing Act of 1968These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.VI. Protected Groups Under Federal Fair Housing ActVII. Enforcement of Fair HousingVIII. Fair Housing TestingIX. Impact of Fair Housing TestingX. Exemptions from Fair Housing ActCurrent LectureI. Federal Housing Policy and Discrimination- Homeownership policies in U.S. included discriminatory practices that restricted access to homeownership and created inequality in wealth accumulation for non-white households FHA lending practices guaranteed white suburbs When access to mortgage lending opened up in 1968, it, along with blockbusting techniques, helped facilitate white flight Example of public policy and personal actions based on differences in physical appearance A. Racial Redlining - Denies credit to specific neighborhoods and communities on basis of racial and ethnic makeup- Financial institutions used to draw a red line around selected areas on amps designating where they wouldn’t grant loansB. Race-restrictive Covenants - Contractual agreements that prohibit lease, purchase or occupation of piece of property by particular group of peopleC. Blockbusting- Business practice of U.S. real estate agents and building developers meantto encourage white property owners to sell their houses at a loss, by implying that racial minorities were moving into their previously racially segregated neighborhood, thus depressing real estate property valuesII. Impact of Housing Discrimination- Residential segregation- Unequal distribution of resources- On individuals: Constrains opportunities to go to good schools, find jobs, build home equity, exercise right to choose, live in appropriate housing (people w/ disabilities)III. Home Mortgage Disclosure Act- Enacted by Congress in 1975- Requires lending institutions to collect data related to applications for home loans, home refinance and home improvement loans- Data helps to identify discriminatory lending patterns IV. Fair Housing- Right to choose a place to live, within one’s means- Fundamental human right- Essential for healthy, functioning democracyV. Fair Housing Act of 1968- Represents trade-off between right to choose where to live and restrictions on people who own property- Right to choose takes precedence over right to excludeVI. Protected Groups Under Federal Fair Housing Act- Race- Religion- National origin- Color- Familial status (children under age 18 in family)- Disability- SexVII. Enforcement of Fair Housing- Federal gov’t works through state and local agencies- Complaints first made at state and local levels as long as state fair housing laws are equivalent to federal law- However, HUD also able to initiate investigations and bring about lawsuitsVIII. Fair Housing Testing- Means to study housing discrimination- Involves individual testers posing as prospective home buyers or tenants, replicating housing search process- Testers paired and assigned profiles so that they’re equally qualified to rent or purchase apt or home in question- Similar in all respects except for 1 of protected classes- Testers conduct “mystery shop” of housing provider- Comparison made to see if there’s any difference in terms and conditions based on protected class being tested- If differences offered to either tester which violates federal, state or local fair housing laws, housing discrimination complaint would be filed- Fair housing tests can be performed in rental, sales, lending and insurance marketsIX. Impact of Fair Housing Testing- Testing has transformed way that racial and ethnic discrimination in housing markets is viewed- Provides concrete stories about unequal treatment of 2 equal individuals- Sheds light not just on incidence and severity of discrimination, but circumstances in which it occursX. Exemptions from Fair Housing Act- Exempts sale or rental of single-family house by owner, so long as owner receivesno assistance from housing agent- Rental of units in building containing no more than 4 units, one of which is inhabited by