Alabama Real Estate Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

The government pays damages under HUD discrimination penalties in order to compensate the victim for the humiliation, pain, and suffering they experienced as a result of the discriminatory action or policy. Options A, B, and D are incorrect because they do not address the harm caused to the victim and are not the primary purpose of these penalties. While the government may also use these penalties to incentivize new construction projects, this is not the main reason for paying damages. The focus of these penalties is to address the discriminatory behavior and provide restitution to the victim.