HUD Reinstates the “Discriminatory Effects Rule”

HUD has recently announced its plans to restore the 2013 “Discriminatory Effects” rule to the Fair Housing Act, which addresses policies that unnecessarily cause systemic inequality in housing. In this final rule, HUD emphasizes that the 2013 rule is more consistent with the purpose of the Fair Housing Act, prioritizing the elimination of discriminatory practices in housing, and would rescind a 2020 rule regarding disparate impact claims. Realistically, the 2020 rule never went into effect due to an injunction issued in a lawsuit. Nonetheless, HUD notes that the 2013 rule still stands and all entities that have been complying with this rule need not change any practices to be compliant with the final rule.