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The Fair Housing Act, passed in 1968 as part of the Civil Rights Act, prohibits rental discrimination based on protected classes, including marital status, sex, gender, age, disability, religion, color, race, and nationality. Landlords cannot deny applications from individuals who are pregnant, have children, or care for elderly persons. For landlords, it is crucial to understand the legal and illegal grounds for denying rental applications. For tenants, the Act empowers them with rights and the option to file complaints if they experience discrimination. The video explores these perspectives and emphasizes the importance of awareness for both landlords and tenants.