"HUD first formalized recognition of disparate impact liability in a 2013 rule issued during the Obama administration. That interpretation was affirmed in 2015, when the U.S. Supreme Court ruled in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc. that disparate impact claims are cognizable under the Fair Housing Act. During President Donald Trump's first term, HUD revised the rule to more closely reflect the Supreme Court's Inclusive Communities decision and to clarify its application."
"In its latest proposal, HUD said the rollback aligns with a Trump executive order stating that equal treatment under the law is a bedrock principle of the United States, emphasizing equality of opportunity rather than equality of outcomes. The agency argued that disparate impact liability conflicts with that principle by creating what it described as an insurmountable presumption of discrimination."
HUD proposed eliminating its discriminatory effects regulations under the Fair Housing Act and published the rule in the Federal Register. Disparate impact refers to policies or practices that appear neutral but disproportionately and unintentionally affect protected groups without discriminatory intent. The proposal would leave questions about disparate impact liability interpretations to the courts. HUD first formalized disparate impact liability in a 2013 rule, and the Supreme Court affirmed such claims as cognizable under the Fair Housing Act in the 2015 Inclusive Communities decision. The rollback is presented as aligning with an executive order emphasizing equal treatment and opportunity. Public comments close Feb. 13.
Read at www.housingwire.com
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