Disparate Impact – HUD Proposes Amendments to 24 CFR Part 100

In Client and Friends Memos, FHA by BMG Memorandum

In the August 19, 2019, issue of the Federal Register (84 FR 42854) HUD published a proposed rule to amend HUD’s 2013 regulatory interpretation of the Fair Housing Act’s disparate impact standard. HUD’s 2013 regulatory interpretation is set forth in 24 CFR Part 100.

In the proposed rule HUD proposes to replace the current discriminatory effects standard in §100.500 with a new standard and incorporate minor amendments to §§100.5, 100.7, 100.70, and 100.120. These amendments are intended to bring HUD’s disparate impact rule into closer alignment with the analysis and guidance provided in the United States Supreme Court’s 2015 ruling in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc., 135 S.Ct. 2507, and to codify HUD’s position that its disparate impact rule is not intended to infringe upon any State law for the purpose of regulating the business of insurance.

 

Full Memorandum