HUD Requests Public Comment on Disparate Impact Rule

Last week HUD announced that it will formally seek public comment on whether its 2013 Disparate Impact Regulation is consistent with the 2015 U.S. Supreme Court ruling in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc. Under the disparate impact rule, which aims to enforce the Fair Housing Act, housing providers, lenders and insurers can be held liable for seemingly neutral practices that have a discriminatory effect on classes of persons protected under the Fair Housing Act. The 2015 ruling by the Supreme Court established that the Fair Housing Act allows lawsuits based on disparate impact, but the court did not specifically rule on HUD’s regulation. The call for public comment comes as civil rights group challenge HUD’s decision to suspend the deadline for local governments that receive HUD funding to submit an AFH.

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