HUD Publishes Proposed Rule Reinstating Obama Era Disparate Impact Regulations

On June 25, HUD issued a proposed rule to reinstate the Discriminatory Effects Standard regulations — commonly referred to as the disparate impact rule or burden-shifting framework — put in place under the Obama Administration in 2013. Discriminatory effects are facially neutral practices that have an unjustified discriminatory effect on a protected group, even if unintentional. The disparate impact rule sets up a process for court consideration of cases related to discriminatory effects. Under the Trump Administration, in September 2020, HUD issued the final rule, titled HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard, intended to replace the 2013 Discriminatory Effects Standard. For more information, refer to NCSHA’s blog. Comments on HUD’s proposal to recodify the 2013 rule are due to HUD on August 24. Please send any feedback for consideration to Jennifer Schwartz by August 3.

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