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Practice Of Real EstateFair_housingHARD

A Georgia property management company implements a policy requiring all prospective tenants to provide three years of tax returns and have a credit score above 750. A fair housing complaint is filed claiming the policy has a disparate impact on protected classes. How should this be evaluated?

Correct Answer

C) The policy must be evaluated to determine if it's necessary for a legitimate business purpose and if less discriminatory alternatives exist

Under disparate impact theory recognized in both federal and Georgia fair housing law, policies that disproportionately affect protected classes must be evaluated for business necessity and whether less discriminatory alternatives exist. A is incorrect as disparate impact alone doesn't make a policy automatically illegal. B is incorrect as consistent application doesn't cure disparate impact. D is incorrect as Georgia recognizes disparate impact claims.

Answer Options
A
The policy is automatically discriminatory because it has a disparate impact
B
The policy is valid if it's applied consistently to all applicants regardless of protected class
C
The policy must be evaluated to determine if it's necessary for a legitimate business purpose and if less discriminatory alternatives exist
D
Disparate impact claims are not recognized under Georgia fair housing law

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Related Topics & Key Terms

Key Terms:

disparate_impacttenant_screeningbusiness_necessityproperty_management

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