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The Fair Housing Act, passed in 1968 as part of the Civil Rights Act, prohibits discrimination in housing based on marital status, sex, gender, age, disability, religion, color, race, or nationality, as these are protected classes. Landlords cannot deny applications based on a tenant's pregnancy, children, or care for an elderly person. For landlords, it's crucial to understand the legal reasons for denying applications and avoid illegal discrimination. For tenants, the Act ensures their rights and the ability to file complaints if they face discrimination. The video explores both landlord and tenant perspectives regarding rental applications and discrimination.