HUD's New Regulation Affirmatively Furthers Fair Housing

Law360, New York (July 17, 2015, 11:19 AM EDT) -- It has been a fascinating fortnight for fair housing. First, in the waning days of June 2015, the U.S. Supreme Court issued its momentous decision in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project Inc. (No. 13-1371), confirming, albeit with significant restrictions, that "disparate impact" — that is, liability for neutral policies and practices that have a unintended adverse effect on protected classes — is recognized by the Fair Housing Act. Then, less than two weeks later, HUD announced its long-awaited final regulation implementing the FHA's "affirmatively furthering fair housing" (AFFH) provisions. 80 Fed. Reg. 42,272 (July 16, 2015). Either one of the developments is fraught with significance for the nation's housing community, especially with respect to attacking persistent patterns of racial segregation in housing. Together, they represent the most significant expansion of fair housing rights — and burdens — in many years. Much will be written about the consequences of the Inclusive Communities decision. This article will focus on the questions raised by the new AFFH regulation....

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