HUD Proposes Rule to Amend Interpretation of Disparate Impact Standard

Friday, August 16, 2019 - 11:30am

The U.S. Department of Housing and Urban Development (HUD) will publish in Monday’s Federal Register a proposed rule to amend the interpretation of the Fair Housing Act’s (FHA’s) disparate impact standard. HUD says the proposed rule comes in response to the 2015 Supreme Court decision in the Texas Department of Housing and Community Affairs vs. Inclusive Community Project Inc. The proposed rule would provide a framework to establish legal liability for practices that have unintended discriminatory effects on classes of people protected under the FHA. The proposed rule would require that plaintiff’s allegations are backed by “a preponderance of evidence … that is not remote or speculative,” including five specific elements supporting the charge. Comments on the proposed rule are due by Oct. 18.

Novogradac’s Mark Shelburne authored a blog post about how the changes could hinder housing development.