HUD Proposes Rule to Amend Interpretation of Disparate Impact Standard

On August 19, HUD published a proposed rule amending the Fair Housing Act’s disparate impact standard in the Federal Register. HUD indicates this proposed rule is due to the 2015 Supreme Court decision in the TDHCA vs. Inclusive Community Project, Inc. case. The rule would provide a framework to establish legal liability for practices that have unintended discriminatory effects on the protected classes. The proposed rule would require that the plaintiff’s allegations are backed by “a preponderance of evidence … that is not remote or speculative,” including five specific elements supporting the charge. HUD is seeking comments which are due by October 18, 2019.

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