House Amendment Would Prohibit Disparate Impact

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During consideration of the Transportation and Housing and Urban Development (THUD) budget for FY 2016, Representative Scott Garrett (R-NJ) introduced an amendment this week that would prohibit the use of funds to implement, administer or enforce the disparate impact rule. At issue for apartment owners and managers is that under the 2013 rule, seemingly neutral and common business policies, such as criminal background screening, could trigger discrimination claims despite no intention of singling out a particular group for adverse treatment.

NMHC/NAA, along with a broad cross section of industry groups, sent a letter in support of Representative Garrett’s amendment in the THUD bill, which the House is scheduled to take up next week.

In addition, the House approved another NMHC/NAA supported amendment offered by Representative Garrett that would prohibit the Department of Justice from using funds to enforce the disparate impact rule under the Fair Housing Act. The amendment passed 232 to 196 with 11 Republicans - Representatives Charles Boustany (LA), Curbelo (FL), Bob Dold (IL), Rodney Frelinghuysen (NJ), Chris Gibson (NY), Richard Hanna (NY), David Jolly (FL), John Katko (NY), Tom MacArthur (NJ), Elise Stefanik (NY) and Michael Turner (OH) - and all Democrats opposing the amendment.

The multifamily industry is committed to equal housing opportunity for all without regard to race, religion, color, sex, national origin, handicap or familial status. However, more clarity is needed on the applicability of disparate impact liability, as it could be used to undermine apartment providers' otherwise valid policies to ensure safe and decent housing for residents.

Paula Cino pcino@nmhc.org

Sarah Rahman srahman@nmhc.org

House Amendment Would Prohibit Disparate Impact

June 04, 2015

Staff Resource

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