HUD Publishes Final Rule to Implement Disparate Impact Standard

Wednesday, September 23, 2020 - 8:30am

The U.S. Department of Housing and Urban Development (HUD) will publish a final rule in Thursday’s Federal Register for HUD’s implementation of the Fair Housing Act’s disparate impact standard. The final rule includes changes to a proposed rule issued in 2019, such as an interpretation of the Fair Housing Act when in conflict with state laws regulating insurance, clarification of vicarious liability, provision and clarification of examples of acts that constitute discriminatory practices under disparate impact, and the implementation of a burden-shifting framework that more closely aligns with the Supreme Court’s decision in Texas Department of Housing and Community Affairs v. Inclusive Communities Project Inc.  HUD received more than 45,000 comments on the proposed rule. The final rule will become effective Oct. 24.