Leasing License Practice Exam

Which of the following is a result of the Civil Rights Act of 1866?

1. The creation of the Federal Housing Authority

2. The establishment of a home loan program for veterans

3. The prohibition of racial discrimination in property transactions

4. The enforcement of zoning laws

The correct answer is: The prohibition of racial discrimination in property transactions

The Civil Rights Act of 1866 was a significant piece of legislation aimed at addressing issues of racial inequality and discrimination. One of its primary outcomes was the explicit prohibition of racial discrimination in property transactions. This means that the law ensured that all persons, regardless of race, had the right to buy, sell, lease, or transfer property without facing discrimination. This was a critical step towards ensuring equal rights and fair treatment in real estate and property ownership, which had been historically denied to African Americans and other racial minorities. The other options, while related to housing and property, are not outcomes of the Civil Rights Act of 1866. The Federal Housing Authority was established in 1934 as part of the New Deal to provide housing assistance, and home loan programs for veterans were implemented much later, following World War II. Zoning laws, on the other hand, are typically established at the local level and were not directly enforced or mandated by the Civil Rights Act of 1866. Thus, the correct answer highlights the law's fundamental intention to combat racial discrimination in property transactions.