HUD Compliance Deadline: Housing and Urban Development Regulations
On September 3, 2020, the Department of Housing and Urban Development (HUD) issued a final rule to amend its interpretation of the Fair Housing Act's disparate impact standard to better reflect the Supreme Court's 2015 ruling in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc. The final rule clarifies that disparate impact claims must meet a robust causality requirement. At the pleading stage, plaintiffs will need to show that a challenged policy or practice is arbitrary, artificial, and unnecessary to achieve a valid interest or legitimate objective. Plaintiffs must also demonstrate a robust causal link between the challenged policy or practice and a disparate impact, and show how the disparity is significant, direct, and affects members of a protected class as a group.
Final Regulation – 20-EF-21
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