What background knowledge is needed for this Practice Of Real Estate question?

Seattle enacted the Fair Chance Housing Ordinance (SMC 14.09) in 2017, becoming one of the first major cities in the United States to broadly prohibit landlords from using criminal history as a screening criterion during the initial tenant application process. The ordinance was a direct response to research showing that criminal records disproportionately affect communities of color due to systemic racial disparities in the criminal justice system, and that housing instability for people with criminal records increases recidivism rates. At the federal level, HUD issued guidance in 2016 warning that blanket criminal history exclusion policies could violate the Fair Housing Act under disparate impact theory, setting the stage for local ordinances like Seattle's to codify these protections explicitly.

What is a good way to remember the answer to this Practice Of Real Estate question?

Remember the phrase 'TWO ARROWS, ONE TARGET' to capture how this policy is attacked from two directions simultaneously: the first arrow is Seattle's Fair Chance Housing Ordinance (which restricts the inquiry itself), and the second arrow is the disparate impact theory (which attacks the racially disproportionate effect of the policy). Visualize a landlord's blanket rejection policy as a target on a wall, with one arrow labeled 'SMC 14.09' hitting it from the left and another arrow labeled 'Disparate Impact' hitting it from the right — either arrow alone could bring the policy down, but together they make the legal exposure unavoidable.

What exam tip applies to this Practice Of Real Estate question?

When a fair housing question involves criminal history screening, always check whether the scenario is set in Seattle, because Seattle's Fair Chance Housing Ordinance adds a layer of restriction that does not exist in most other jurisdictions and is a favorite topic for Washington State real estate exam questions. Additionally, whenever a question mentions both a facially neutral policy and a racial minority applicant, treat that combination as a signal that disparate impact theory is in play — the exam is testing whether you know that intent is not required for a disparate impact violation, and the correct answer will almost always acknowledge both the local ordinance and the disparate impact framework.

How does this Practice Of Real Estate concept apply in real world practice?

A property management company in Seattle automatically rejects any applicant who discloses a criminal conviction on their application, regardless of whether the conviction was for a minor misdemeanor fifteen years ago or a recent violent felony. A qualified applicant — a racial minority with a decade-old non-violent drug misdemeanor, stable employment, and excellent rental references — is rejected under this blanket policy. The applicant files a complaint with the Seattle Office for Civil Rights, which investigates and finds that the company's policy violates SMC 14.09 because it inquired about and acted on criminal history during the initial screening phase, resulting in fines and mandatory policy revision.

Practice Of Real EstateFair_housingHARD

A property management company in Seattle implements a 'criminal background screening policy' that automatically disqualifies any applicant with any criminal conviction, regardless of the nature or age of the conviction. A prospective tenant with a decade-old misdemeanor conviction for a non-violent offense is rejected. The tenant is also a member of a racial minority group. Under Seattle's local ordinances and applicable fair housing guidance, which analysis best describes the legal risk of this policy?

Correct Answer

D) The policy may be unlawful under a disparate impact theory if it disproportionately excludes members of a protected racial class, and Seattle's Fair Chance Housing Ordinance further restricts the use of criminal history in tenant screening

Seattle has enacted a Fair Chance Housing Ordinance (SMC 14.09) that significantly restricts landlords' ability to use criminal history in tenant screening. The ordinance generally prohibits landlords from inquiring about or taking adverse action based on criminal history during the initial screening process, with limited exceptions for certain serious offenses. Beyond the local ordinance, HUD guidance and fair housing case law recognize that blanket criminal history exclusion policies can violate the Fair Housing Act under a disparate impact theory if they disproportionately screen out applicants of a particular race or national origin — because arrest and conviction rates are not racially neutral. A policy that automatically disqualifies any applicant with any conviction, regardless of age or nature, is particularly vulnerable to both the Seattle ordinance and disparate impact challenges.

Answer Options

The policy may be unlawful only if the tenant can prove the landlord specifically intended to discriminate based on race

The policy is lawful because criminal history is not a protected class under RCW 49.60 or Seattle's ordinances

The policy is lawful because landlords have an absolute right to screen for criminal history to protect other tenants and the property

The policy may be unlawful under a disparate impact theory if it disproportionately excludes members of a protected racial class, and Seattle's Fair Chance Housing Ordinance further restricts the use of criminal history in tenant screening

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