Chapter: Which federal law prohibits discrimination based on race or color in the sale or rental of housing? (EN)

Chapter: Which federal law prohibits discrimination based on race or color in the sale or rental of housing? (EN)

The Fair Housing Act (Title VIII of the Civil Rights Act of 1968)

• Core Principle: The Fair Housing Act (FHA), codified as Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§ 3601-3619), prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, sex, familial status, or national origin. This chapter focuses specifically on the prohibitions related to race and color.

Understanding Race and Color in the Context of the Fair Housing Act

• Race: Refers to a person’s ancestry and physical characteristics associated with their ethnicity or origin.
• Color: Refers to the pigmentation of a person’s skin. Discrimination based on color can occur even within the same racial group.

Prohibited Activities Under the Fair Housing Act (Race and Color Specific)

1. Refusal to Sell or Rent: Denying housing to a person based on their race or color. This includes:

   • Refusing to show available housing units.
   • Providing false or misleading information about availability.
   • Setting different terms or conditions for rental or sale.
   • Ignoring or delaying responses to inquiries.

2. Steering: Directing individuals towards or away from specific neighborhoods based on their race or color. This can involve:

   • Showing White applicants units primarily in predominantly White neighborhoods.
   • Showing Black applicants units primarily in predominantly Black neighborhoods.
   • Discouraging members of a particular racial or ethnic group from moving into a neighborhood.
   • The practice of steering maintains and perpetuates racial segregation.

3. Discriminatory Advertising: Making statements in advertising that indicate a preference, limitation, or discrimination based on race or color.

   • Using language or images that suggest a preference for tenants or buyers of a particular race.
   • Featuring only people of one race in housing advertisements, thereby discouraging other racial groups from applying.

4. Discriminatory Financing: Refusing to provide a mortgage or offering less favorable terms due to the applicant’s race or color. This can include:

   • Denying a loan application.
   • Charging higher interest rates.
   • Requiring a larger down payment.
   • Redlining: Denying services (such as mortgages or insurance) to residents of certain neighborhoods based on race or ethnicity. This practice often uses maps where certain areas, often with high minority populations, are outlined in red, indicating that they are considered too risky for investment. The Community Reinvestment Act (CRA) aims to prevent redlining.

5. Harassment: Creating a hostile housing environment for a person based on their race or color. This includes:

   • Using racial slurs or epithets.
   • Making racially insensitive jokes or comments.
   • Engaging in other forms of unwelcome or offensive conduct.

6. Retaliation: Taking adverse action against someone who has filed a complaint of housing discrimination or has assisted in an investigation.

Scientific Theories and Principles Related to Housing Discrimination

• Social Psychology: Theories of prejudice and discrimination, such as:

  • Social Identity Theory: Individuals tend to favor their own social group (in-group) over other groups (out-groups), leading to biased behavior. In housing, this can manifest as landlords preferring tenants of their own race.
  • Realistic Conflict Theory: Competition for limited resources (housing) can lead to prejudice and discrimination between groups.
  • Implicit Bias: Unconscious attitudes and stereotypes that affect our understanding, actions, and decisions. These biases can lead to discriminatory behavior even without conscious intent. Implicit Association Tests (IATs) are used to measure implicit bias. Let b represent an individual’s measured implicit bias, x represent their explicit beliefs, and y their discriminatory behavior. A simplified model could be: y = αx + βb + ε, where α and β are coefficients representing the relative influence of explicit beliefs and implicit bias, and ε is an error term.

• Sociology: Theories of residential segregation and inequality, such as:

  • Spatial Assimilation Theory: As minority groups achieve socioeconomic success, they move to more affluent (and often predominantly White) neighborhoods. However, housing discrimination can hinder this process.
  • Place Stratification Theory: Structural factors, such as discriminatory lending practices and zoning laws, contribute to and maintain racial segregation in housing.
  • Critical Race Theory (CRT): Examines how race and racism have shaped legal systems and social structures, perpetuating inequalities in housing opportunities.

• Economics: Theories of housing markets and discrimination, such as:

  • Taste-Based Discrimination: Landlords or sellers have a preference for tenants or buyers of a certain race, leading them to discriminate against others, even at a financial cost.
  • Statistical Discrimination: Landlords or sellers use race as a proxy for other characteristics (e.g., creditworthiness) that they believe are correlated with race. This is illegal if it results in discriminatory outcomes.

Practical Applications and Related Experiments

1. Fair Housing Testing:

   • Purpose: To detect illegal housing discrimination.
   • Method: Trained testers, matched for characteristics except race (e.g., age, income, family size), inquire about the same housing unit. Testers of different races present identical qualifications. Differences in treatment (e.g., availability, terms, conditions) suggest discrimination.
   • Data Analysis: Compare the experiences of testers of different races. Statistical analysis (e.g., chi-square tests) can be used to determine if the differences are statistically significant, indicating evidence of discrimination.
     • Let p_W be the proportion of White testers offered the housing unit.
     • Let p_B be the proportion of Black testers offered the housing unit.
     • Null hypothesis (H₀): p_W = p_B (no discrimination).
     • Alternative hypothesis (H₁): p_W ≠ p_B (discrimination).
     • Calculate a test statistic (e.g., a z-score) and compare it to a critical value to determine if the null hypothesis should be rejected.

2. Analysis of Mortgage Lending Data (HMDA):

   • Purpose: To identify patterns of discriminatory lending.
   • Method: Examine Home Mortgage Disclosure Act (HMDA) data, which requires lenders to report information about mortgage applications, including the applicant’s race and ethnicity, loan amount, and loan outcome.
   • Data Analysis: Calculate denial rates for different racial groups, controlling for other factors that could affect loan approval (e.g., income, credit score, debt-to-income ratio). Regression analysis can be used to estimate the effect of race on loan approval.
     • Let Y be a binary variable indicating loan approval (1 = approved, 0 = denied).
     • Let X_i be a set of control variables (e.g., income, credit score).
     • Let R be a binary variable indicating race (1 = minority, 0 = White).
     • A logistic regression model can be used: logit(P(Y=1)) = β₀ + Σβ_iX_i + γR, where γ represents the effect of race on the probability of loan approval, holding other factors constant.
     • A statistically significant and negative value of γ would suggest that minority applicants are less likely to be approved for a loan, even after controlling for other factors.

3. Audit Studies of Rental Listings:

   • Purpose: To identify discriminatory practices in online rental listings.
   • Method: Create fictitious profiles of potential tenants with different racial backgrounds and inquire about rental listings. Track responses and availability information.
   • Data Analysis: Analyze the frequency and nature of responses received by profiles of different races. Compare response rates, the number of available units presented, and the terms offered.

Important Discoveries and Breakthroughs

• The Kerner Commission Report (1968): Highlighted the role of housing discrimination in perpetuating racial segregation and inequality, leading to calls for stronger fair housing laws.
• The Expansion of the Fair Housing Act (1988): Added protections for familial status and disability, strengthening enforcement mechanisms and expanding the scope of the law.
• The Development of Fair Housing Testing: Provided a powerful tool for detecting and proving housing discrimination, enabling more effective enforcement of the Fair Housing Act.
• Statistical Analysis of HMDA Data: Enabled researchers and policymakers to identify and address patterns of discriminatory lending, leading to reforms in mortgage lending practices.

Impact of Scientific Knowledge

• Informing Policy: Research on housing discrimination has informed the development of fair housing laws and policies, aiming to promote equal housing opportunities.
• Enhancing Enforcement: Scientific methods, such as fair housing testing and data analysis, have improved the effectiveness of fair housing enforcement efforts.
• Raising Awareness: Scientific evidence of housing discrimination has raised public awareness of the issue and fostered a greater understanding of its causes and consequences.
• Promoting Social Justice: By uncovering and addressing housing discrimination, scientific knowledge contributes to promoting social justice and creating more equitable communities.