Final answer:
The restrictive covenant stating that 'Homes in a multi-story condo development may not be sold to wheel ir users' is not legally allowable as it discriminates against individuals with disabilities, contrary to the Americans with Disabilities Act (ADA) and Fair Housing laws.
Step-by-step explanation:
The correct answer to the question of which restrictive covenant is not legally allowable is 'Homes in a multi-story condo development may not be sold to wheel our users.' This type of restriction is unenforceable because it discriminates against individuals with disabilities, which is prohibited by law. The other options listed, such as regulations on the display of flags, house size, and placement of bright lights, are examples of typical restrictive covenants that may be designed to enhance a neighborhood or protect the health and general welfare of a community, as long as they are reasonable and not arbitrary.
It is essential to recognize that while restrictive covenants exist for various reasons, including to maintain the aesthetic quality or character of a neighborhood, they cannot violate constitutional protections. Discriminating against someone based on disability contravenes the Americans with Disabilities Act (ADA) as well as Fair Housing laws. The history of restrictive covenants in the United States shows a progression from attempts to segregate neighborhoods based on race or religion, practices that were eventually found unconstitutional, to the modern understanding that such restrictions must conform to a standard that ensures they serve the community as a whole and do not discriminate.