Statement from the National Apartment Association (NAA) and the National Multifamily Housing Council (NMHC) on the U.S. Department of Housing and Urban Development (HUD) reinstating a 2013 version of disparate impact regulation:
“NAA and NMHC strongly support federal fair housing laws, but HUD’s move to revert to a 2013 version of their disparate impact regulation creates unnecessary confusion, undermines the use of necessary business practices and imposes new obstacles to reducing housing costs and addressing our housing supply shortage.
“Importantly, it fails to address limitations the Supreme Court put on the use of disparate impact theory—which creates legal liability for seemingly neutral policies that may have a discriminatory effect on a protected class—in a 2015 ruling in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc.
“NAA and NMHC have documented the diverging disparate impact standards being used by HUD and various courts following the Inclusive Communities decision. Since the 2013 rule fails to address the current legal landscape, we strongly urge HUD to reconsider their plans and implement an updated rule that helps housing providers execute long-held business practices without running afoul of fair housing requirements.”