Disparate Impact Rule
Rep. Maxine Waters (CA-43), the top Democrat on the House Financial Services Committee, released this statement following the Department of Housing and Urban Development’s (HUD) reinstatement of the 2013 Disparate Impact Rule, which implements disparate impact protections under the Fair Housing Act of 1968.
“From rooting out discriminatory algorithms and financial technology to exclusionary zoning and tenant screening processes, the disparate impact standard is a key provision of the Fair Housing Act and arguably the most important tool for enforcing the civil rights law in today’s rapidly evolving housing market.
“Disparate impact is a legal standard that allows victims of housing discrimination to challenge policies and practices that appear neutral on their face, but that have the impact of discriminating against protected classes of people under the law.
“I commend the Biden Administration for reinstating the 2013 disparate impact rule that was finalized under the Obama Administration but dismantled by the Trump Administration in September 2020. Back then, under my leadership as former Chair, Committee Democrats unanimously opposed the previous administration’s harmful 2020 proposed rule, which was also challenged in three separate lawsuits and ultimately enjoined by the U.S. District Court in the District of Massachusetts.
“Today, fair housing remains a dream deferred for too many people across the country, exacerbating our nation’s racial wealth gap, housing affordability crisis, and homelessness. The reinstatement of the 2013 disparate impact rule is a major step toward achieving housing justice for all, as our nation promised nearly 55 years ago.”