The Spring Street Brief

Episode 26: HUD Proposes Eliminating Disparate Impact Rule

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HUD has published a proposed rule to eliminate the 2013 Fair Housing Act disparate impact regulations, representing a significant shift in fair housing enforcement policy with comments due in February.

What Is Disparate Impact?

  • Allows fair housing claims based on discriminatory effects without proving intent
  • Challenges policies like tenant screening criteria and occupancy standards
  • Protects against facially neutral policies that harm protected classes

    • Implications of Elimination:

    • Plaintiffs would need to prove intentional discrimination—a higher legal bar
    • Current compliance programs built around disparate impact could become less critical
    • State and local fair housing laws may still enforce disparate impact standards
    • Creates potential patchwork of requirements across jurisdictions

      • Action Items:

      • Review the proposed rule before the February comment deadline
      • Consider submitting comments to shape housing policy
      • Assess current compliance programs and potential changes

        • Subscribe to The Spring Street Brief for daily affordable housing news covering fair housing, HUD policy, LIHTC, and compliance updates.

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        The Spring Street BriefBy Spring Street Management Group