Which of the following is a prohibited activity under federal fair housing law?

Declining a transaction based on race is a prohibited activity under federal fair housing law, specifically the Fair Housing Act. This legislation was enacted to eliminate discrimination in housing practices, ensuring that all individuals have equal access to housing opportunities regardless of their race, color, religion, sex, national origin, familial status, or disability. Engaging in discriminatory practices by refusing to engage in a transaction with someone based solely on their race directly contravenes these laws, which aim to foster an equitable housing market.

On the other hand, setting higher rental prices and offering reduced maintenance services could potentially raise ethical concerns and may be examined closely in specific circumstances, particularly if they disproportionately affect a protected class. However, these actions are not explicitly prohibited under the Fair Housing Act like denying a transaction based on race is. Charging application fees, while it can seem unfair if implemented discriminatorily, is generally legal as long as it does not violate rules regarding equity or access. Thus, the clarity of the implications of declining a transaction based on race makes it a clear violation of federal law.