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Practice Of Real EstateFair_housingMEDIUM

A property management company in Iowa City refuses to rent an apartment to an applicant because the applicant's income comes entirely from Section 8 housing vouchers. The applicant believes this is discrimination. Under Iowa law, which of the following best describes the legal status of this refusal?

Correct Answer

C) It may be unlawful under the Iowa Civil Rights Act, which in some contexts protects source of income as a class

Iowa Code Chapter 216 includes source of income as a protected characteristic in certain housing contexts. Refusing to rent solely because an applicant uses Section 8 vouchers may constitute unlawful discrimination under Iowa's Civil Rights Act, even though source of income is not a federally protected class under the Fair Housing Act. This is an Iowa-specific protection that goes beyond federal law.

Answer Options
A
It is lawful because federal fair housing law does not protect source of income as a class
B
It is lawful because Iowa law only prohibits discrimination in property sales, not rentals
C
It may be unlawful under the Iowa Civil Rights Act, which in some contexts protects source of income as a class
D
It is unlawful only if the applicant can also prove discrimination based on race or national origin

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Related Topics & Key Terms

Key Terms:

iowa_civil_rights_actsource_of_incomeprotected_classesfair_housingrental

Related Concepts

Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.

Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.

Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.

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