A Mississippi property management company operates an apartment complex and has a written policy of refusing applications from any person who has been arrested but not convicted of a crime. A prospective tenant who was arrested but never convicted is denied housing and files a fair housing complaint. Under the Mississippi Fair Housing Act, which of the following is the most accurate analysis?
Correct Answer
D) The policy may violate fair housing law if it has a disparate impact on a protected class, even though arrest record itself is not a protected class in Mississippi
Arrest record is not itself a protected class under the Mississippi Fair Housing Act or the federal Fair Housing Act. However, HUD has issued guidance indicating that blanket policies excluding persons based on arrest records (without conviction) may violate fair housing law under a disparate impact theory if the policy disproportionately excludes members of a protected class such as race or national origin. Therefore, the policy is not automatically lawful simply because arrest record is not a listed protected class.
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Related Topics & Key Terms
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Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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.
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