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Practice Of Real EstateFair HousingHARD

A condominium developer in Honolulu markets a new project exclusively in Japanese-language media and only through Japanese-speaking agents, resulting in nearly all buyers being of Japanese ancestry. A Chinese-American buyer who was not reached by the marketing claims fair housing discrimination. The developer argues the marketing was purely for efficiency. Under Hawaii fair housing law, this situation most likely represents:

Correct Answer

D) Steering, which is a form of fair housing violation based on the effect of the marketing practices

Under Hawaii's fair housing law (HRS Chapter 515) and federal law, steering occurs when marketing or sales practices effectively channel buyers or renters toward or away from housing based on protected class characteristics. Even if no buyer was explicitly rejected, marketing exclusively through one ethnic community's media and agents can constitute discriminatory steering based on ancestry—a protected class under HRS §515-3. The disparate impact of the marketing practice, regardless of stated intent, can establish a fair housing violation.

Answer Options
A
A legitimate business practice exempt from HRS Chapter 515 because no buyer was explicitly rejected
B
Blockbusting, because the developer changed the neighborhood's demographic composition
C
Lawful marketing because developers may target specific demographic communities for efficiency
D
Steering, which is a form of fair housing violation based on the effect of the marketing practices

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Related Topics & Key Terms

Key Terms:

fair_housingsteeringancestrymarketingdisparate_impactHRS_515

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