Equal opportunity housing

In November 1962, President Kennedy signed an executive order, entitled "Equal Opportunity in Housing," prohibiting discrimination in housing that is owned, operated or assisted by the federal government.

The order required federal agencies to take action to prevent discrimination based upon race, color, creed or national origin. Although the executive order was the first federal anti-discrimination initiative of the 20th century, it had limited impact on the housing market.

 

Civil Rights Act of 1866

At the end of the Civil War, the Thirteenth Amendment was enacted to abolish slavery and to give Congress authority to enact appropriate legislation to enforce the abolishment of slavery.

In 1866, the reconstruction Congress passed the Civil Rights Act of 1866, which guaranteed property rights to all citizens regardless of race. The Act specifically provided that all citizens shall have the same rights as white citizens to inherit, purchase, and sell real and personal property.

Governmental discrimination was also prohibited by the Fourteenth Amendment (enacted in 1868) and the Fifth Amendment's due process clause that applies to the federal government.
But soon thereafter, the nation's commitment to civil rights deteriorated.

In retrospect, the 1866 Civil Rights Act guarantee of equal rights to all races was, unfortunately, an empty promise.

For over a century, the courts prohibited racial discrimination only with regard to "state" (governmental) discrimination, such as racial zoning or the court enforcement of racially-restrictive covenants governing real property; therefore, the 1866 Act was essentially ineffective in combating private discrimination.

The first major setback to the legal rights of African-Americans came in the U.S. Supreme Court's decision in the Civil Rights Case (1883).

In that case, the Court held that the equal protection clause of the U.S. Constitution (i.e., the 14th Amendment) did not prohibit private acts of discrimination, rather it merely prohibited discrimination that was the product of government action.

 

Title VI to the Civil Rights Act of 1964

Two years later, Congress enacted Title VI to the Civil Rights Act of 1964, which prohibited discrimination in programs receiving federal financial assistance.

Once again, this Act had little effect since it did not prohibit discrimination in the private housing market.

Fair Housing Act (Title VIII of the Civil Rights Act of 1968)

The real change in fair housing came in 1968, a year that is considered the birth of modern fair housing.

In addition to the assassination of Rev. Martin Luther King Jr., two historic events occurred that year that forever changed the housing market.

First, in April, Congress enacted the Fair Housing Act (Title VIII of the Civil Rights Act of 1968). This Act bans discrimination on the basis of race, color, religion and national origin in most types of housing transactions. The Act also contains a variety of remedies to attack housing discrimination including private discrimination.

Second, in June, the U.S. Supreme Court rendered its decision in Jones v. Alfred H. Mayer Co., and held that the Civil Rights Act of 1866 banned private, as well as government, racial discrimination in housing. Thus the 1866 Act was given new life, and could be used to fight racial discrimination.
The Fair Housing Act outlaws a variety of private discriminatory acts, including refusal to rent or sell, discrimination in the terms of sale or rental, blockbusting, and discrimination in advertising and in the use of real estate services.

In 1974, the Fair Housing Act was expanded to include prohibition of gender discrimination, and Section 8 programs were created.

In the same year, Congress passed the Equal Credit Opportunity Act, which prohibited credit discrimination in housing on the basis of race, color, religion, national origin, gender, marital status or age.

In the 1970s, various federal legislations were enacted to prohibit discrimination in federal programs, and to include additional protected classes.

Congress enacted Section 504 of the Rehabilitation Act of 1973, prohibiting discrimination against handicapped persons in all federally-assisted programs, including housing.

Later, Congress enacted the Age Discrimination Act of 1975, which prohibited discrimination on the basis of age in programs receiving federal financial assistance.
Trafficante v. Metropolitan Life Insurance Co.

In 1980, President Carter expanded Kennedy's executive order to include gender-based discrimination, and to grant HUD additional authority to issue regulations to further fair housing in federal programs.

After the enactment of the Fair Housing Act, the U.S. Supreme Court rendered several important decisions favorable to attacking housing discrimination.

In 1972, the Court held in Trafficante v. Metropolitan Life Insurance Co. that the Fair
Housing Act should be broadly construed, and that HUD's interpretation of the Act should
be given great weight.

Of tremendous practical importance, the Court also upheld the right of housing organizations and other residents to sue persons or municipalities that violated the Fair Housing Act.

Fair Housing Amendments Act of 1988

In 1982, the Court rendered an important decision entitled Havens Realty Corp. v. Coleman, which permitted housing organizations and "testers" to sue in racial steering cases. These court cases enable private and public organizations to investigate fair housing violations and to file actions for civil penalties and damages.

On September 13, 1988, former President Ronald Reagan signed the Fair Housing Amendments Act of 1988. The Amendment became effective March 12, 1989. The 1988 Amendment was enacted to expand the coverage of the Fair Housing Act and to enhance enforcement of the Act.
Fair Housing Amendments Act of 1988

The 1988 Amendment made major changes to Title VIII, including adding two protected classes to the Fair Housing Act: (1) families with children, and (2) handicapped persons. The Amendment also modified the administrative process for HUD complaints, and essentially provides that HUD had a higher degree of authority to enforce the Fair Housing Act.

The Amendment removed the cap on punitive damages and increased the available damages and civil penalties. The Amendment also extended Title VIII to other discriminatory practices, relating to real estate loans for repairs and improvements, certain secondary market activities, and real estate appraisals.
A chronology of important constitutional acts and federal legislation

1787 - U. S. Constitution (Article 1, Section 2):
For purposes of number of representatives, slaves count as three-fifths of a person.

1791 - Bill of Rights (First 10 Amendments):
Fifth Amendment guarantees right to "due process."

1865 - 13th Amendment:
Slavery abolished and Congress given power to enact appropriate legislation to enforce this article.

1866 - Civil Rights Act of 1866 (42 U.S.C. 1982):
Enacted under authority of 13th Amendment, this Act guarantees all property rights enjoyed by U.S. citizens regardless of race.

1868 - 14th Amendment:
14th Amendment (and 5th Amendment) prohibit government discrimination.

1962 - Executive Order # 11063:
President Kennedy directs all federal agencies to take all action necessary to prevent discrimination because of race, color, creed or national origin.

1964 - Civil Rights Act of 1964:
(1) prohibits discrimination based upon race, color, and national origin in federally assisted programs, including public housing; and

(2) authorizes withholding of federal funding from state or local grantees engaging in discriminatory activity.
1968 - Civil Rights Act of 1968 (Title VIII -The Fair Housing Act):
(1) outlaws private discrimination in housing, including refusal to rent or sell;

(2) also outlaws private discrimination in advertising, terms of sale or rental, blockbusting and use of real estate services;

(3) an exemption is provided for individual owners of single-family home (where no real estate broker is used) if owner does not own more than three such homes; and

(4) an exemption is provided for housing operations by qualifying religious groups or private clubs.

1973 - Rehabilitation Act of 1973 (Section 504):
prohibits discrimination against handicapped persons in all federally-assisted programs, including housing.
1974 - Equal Credit Opportunity Act (ECOA):
prohibits credit discrimination in housing, based upon race, color, religion, national origin, sex, marital status or age.

1974 - Housing and Community Development Act of 1974:
(1) expands Fair Housing Act to include prohibition of sex discrimination in housing;

(2) creates "Section 8" programs; and

(3) established Block Grant Program and Urban Development Action Program.

1975 - The Age Discrimination Act of 1975:
prohibits discrimination on the basis of age in programs receiving federal financial assistance.

1980 - Executive Order # 12259:
President Carter expands Kennedy's 1962 Executive Order to include sex-based discrimination, and grants HUD Secretary additional authority to issue regulations.

1988 - Fair Housing Amendments Act of 1988:
(1) broadens Title VIII to include protected classes handicapped persons and familial status (with exception of older person housing);

(2) mandates handicapped accessibility requirements for new multi-family properties, and permits handicapped tenants to modify existing housing (at tenant's expense); and

(3) increases civil and administrative enforcement relating to potential monetary awards, punitive damages, and attorney's fees.