HUD to Seek Public Comment on 'Disparate Impact' Regulation

HUD recently announced that it will formally seek public comment on whether its 2013 Disparate Impact Regulation is consistent with a 2015 U.S. Supreme Court ruling.

In Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc., the court recognized that the Fair Housing Act covers what’s known as “disparate impact” claims—that is, cases where seemingly neutral practices have a discriminatory effect on protected classes of persons.

HUD’s 2013 Disparate Impact Regulation provides a framework for establishing legal liability for facially neutral practices that have discriminatory effects on classes of persons protected under the Fair Housing Act. According to HUD, the Supreme Court referred to its Disparate Impact Regulation in its Inclusive Communities ruling, but it did not directly rule upon it.

"HUD remains committed to making sure housing-related policies and practices treat people fairly," HUD Secretary Ben Carson said in a statement. "We will always challenge any practice that discriminates against people the law protects."