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HUD Issues Formal Request for Public Comment on 2013 Disparate Impact Rule

Disparate Impact Rule

HUD formally announced this week that it will seek public comment on whether the 2013 Disparate Impact Rule conflicts with the 2015 Supreme Court ruling in Texas Department of Housing and Community Affairs v. Inclusive Communities Project. As previously reported, NAA/NMHC have long-argued that numerous HUD regulations and guidance documents reinforce an interpretation of disparate impact that conflicts with recent legal precedent and creates uncertainty in housing providers use of long-held, business practices.

HUD released a notice of advanced rulemaking (ANPR) which includes six questions for public comment. Within the questions, HUD inquires about the effectiveness, the clarity, and the scope of the Disparate Impact Rule’s.

NAA/NMHC are encouraged by HUD formally seeking public comment and will submit comments urging HUD to reevaluate the Final Rule’s disparate impact standard to ensure compatibility with the Supreme Court and reissue guidance that helps housing providers execute necessary business practices without running afoul of fair housing requirements.