A long-awaited decision by the United States Supreme Court led to a June 25 ruling that preserves the usage of ‘disparate impact’, an important legal principle sometimes known as the discriminatory effects standard. The majority opinion held that housing discrimination under the nation’s 1968 Fair Housing Act occurs by effect—as well as by intent.
Writing the decision, Justice Anthony Kennedy concluded, “[S]ince the passage of the Fair Housing Act in 1968 and against the backdrop of disparate impact liability in nearly every jurisdiction, many cities have become more diverse… .The Court acknowledges the Fair Housing Act’s continued role in moving the Nation toward a more integrated society.”
Joining Justice Kennedy to form a 5-4 majority were Justices Stephen G. Breyer, Ruth Bader Ginsburg, Elena Kagan, and Sonia Sotomayor.
Although in 2013 the federal Department of Housing and Urban Development codified the use of disparate impact through its rule-making process, the case of Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc., had its oral arguments on Jan. 21. The decision was awaited by consumer advocates and mortgage industry professionals alike.
About Post Author
