NAHMA HUD Update: HUD Issues Final Rule Revising Disparate Impact StandardsSeptember 24, 2020 Dear NAHMA Members, Today, HUD issued a final rule, Implementation of the Fair Housing Act’s Disparate Impact Standard, that revises HUD’s 2013 Fair Housing Act (FHA) disparate impact standards to reflect the U.S. Supreme Court’s 2015 decision in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc. After receiving over 45,000 comments on their 2019 proposed rule, HUD’s final rule includes numerous clarifications and substantive changes. HUD’s final rule codifies a new burden-shifting framework for analyzing disparate impact claims to reflect the Inclusive Communities decision. The final rule establishes a uniform standard for determining when a housing policy or practice with a discriminatory effect violates HUD’s Fair Housing Act regulations and clarifies that application of the disparate impact standard is not intended to affect state laws governing insurance. The final rule becomes effective on October 24, 2020. HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard Final Rule is attached and can also be viewed here.
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