What legislation prohibits racial discrimination in housing sales and rentals?

The correct response is that the Fair Housing Act specifically prohibits racial discrimination in housing sales and rentals. Enacted in 1968, the Fair Housing Act addresses various forms of discrimination based on race, color, national origin, religion, sex, familial status, and disability. It aims to ensure that all individuals have equal opportunity in housing and can access the same opportunities regardless of these characteristics.

While the Civil Rights Act of 1964 also addressed discrimination in various forms, including employment and public accommodations, it does not specifically target housing. The Civil Rights Act of 1866 established the foundation for equal rights but was more focused on protecting the civil rights of all citizens, primarily ensuring that U.S. citizens had the right to own property. The Housing and Urban Development Act encompasses a broader range of housing policies, development programs, and funding but does not explicitly prohibit discrimination like the Fair Housing Act does.

Thus, the Fair Housing Act is the key piece of legislation that specifically prohibits racial discrimination in the context of housing transactions, making it the best choice for this question.