Written by Forrest Wall, CAE, Staff Vice President and Industry Relations
HUD Disparate Impact Rule Case Goes To U.S. Supreme Court
The United States Supreme Court has agreed to hear the case Township of Mount Holly v. Mount Holly Gardens Citizens in Action, Inc., which involves a controversial rule under federal housing discrimination law. The rule, which went into effect on March 17, 2013, formally established what is termed “disparate impact” standards under the Fair Housing Act.
Title VIII of the Civil Rights Act of 1968, as amended (the Fair Housing Act), prohibits discrimination in the sale, rental, or financing of dwellings and in other housing-related activities on the basis of race, color, religion, sex, disability, familial status, or national origin. The Department of Housing and Urban Development (HUD), which is charged with enforcement of the Act, has long-interpreted the Act to prohibit practices with an unjustified discriminatory effect – also referred to as a disparate impact – regardless of whether there was an intent to discriminate. Although federal courts have previously ruled on this interpretation, the Act did not include a standard for proving a discriminatory effects violation. The final rule published by HUD formalized its recognition of discriminatory effects liability under the Act along with a three-part burden-shifting test for determining whether a given practice has an unjustified discriminatory effect, thus leading to liability under the Act.
In the Mount Holly case, a New Jersey township created a plan for redeveloping a blighted neighborhood occupied mostly by low to moderate income minority households. The residents sued the township on the basis that the redevelopment had a disparate impact on minorities. The decision by the U.S. Supreme Court will affect apartment owners because the rule has called into question the legality of some common industry practices, such as tenant screening.
Have A Builder’s License? Don’t Forget Continuing Competency
Some AAM Members hold a Michigan Residential Builder License even though they may not be currently building. If you are one of these individuals and you wish to maintain your license, please remember that the State of Michigan now requires you to complete three hours of “continuing competency” by your renewal deadline of May 31, 2014. AAM and HBA are holding three hour classes (covering each of the required categories – one hour codes, one hour legal and one hour safety) which will provide you what you need to comply. The first class is scheduled this month, on August 22nd, with online registration available at www.builders.org. Please contact me at 248-862-1004 for more information about this requirement.