The House of Representatives has approved an amendment that would block the Department of Housing and Urban Development from finalizing a proposed rule that would expand the reach of the nation’s fair housing laws.
Housing industry groups supported the amendment offered by Rep. Scott Garrett, R-N.J., that is now part of the HUD appropriations bill.
Under the HUD proposal, it would no longer be necessary to prove intent to discriminate if statistical data show a company’s lending practices are having a discriminatory impact on minorities.
"It is well established that liability under the Fair Housing Act can arise where a housing practice is intentionally discriminatory or where it has a discriminatory effect," the HUD proposal says. Attorneys refer to this legal theory as “disparate impact.”
By voice vote, the House approved the Garrett amendment Wednesday night. The amendment prohibits HUD from spending any funds on finalizing the disparate impact rule.
The House is expected to pass the HUD appropriations bill on Thursday.
The Senate-passed HUD appropriations bill does not contain a similar provision.
