The order proposes increased regulation of rental housing providers.
On October 30, 2023, President Biden signed a wide-ranging executive order seeking to increase regulation of artificial intelligence (AI) across industries nationwide. The President’s move broadly hopes to “ensure that America leads the way in seizing the promise and managing the risks of” AI. Importantly, the order does not constitute immediate policy change, but rather directs agencies across the federal government to develop guidelines and frameworks.
The White House outlines areas in the executive order that will impact housing providers, including efforts to:
- Ensure AI advances equity and civil rights;
- Better protect Americans’ data privacy, including from the risks posed by AI;
- Mitigate the harms and maximizing the benefits for American workers, intending to prevent employers from undercompensating workers, unfair application evaluations or impinging on workers’ organizing and
- Promote AI innovation and competition (e.g. modernizing immigration procedures for skilled immigrants and nonimmigrants to work in the US).
Advancing Equity and Civil Rights
In the order, President Biden directs the U.S. Department of Housing and Urban Development and the Consumer Financial Protection Bureau (CFPB) to combat unlawful discrimination enabled by automated or algorithmic tools used in housing decision-making and issue guidance within 180 days of the date of the order. These actions are intended to impact the use of resident screening systems and advertising of housing and help avoid violations of federal law.
The order also encourages the Federal Housing Finance Agency and the CFPB to use their authorities to ensure that their regulated entities use appropriate AI tools, evaluate underwriting models for bias or disparities affecting protected groups and automate collateral-valuation and appraisal processes to minimize bias.
Additionally, the National Apartment Association (NAA) applauds the White House in calling for a bipartisan data privacy legislation, which will promote a national standard reducing compliance costs of multi-state housing providers. The president's action today provides another opportunity for the industry to shape the policy landscape to support valuable operational tools for housing providers to better achieve our shared goals of increasing the availability of housing.
NAA continues its advocacy to ensure the voice of the rental housing industry is represented as federal regulators contemplate policy changes. When new federal guidance is finalized, NAA stands ready to assist its membership and affiliate network navigate any new compliance responsibilities.