In February 2013, Morrison & Foerster published the client alert “HUD Issues Aggressive New Fair Housing Rule.”
The U.S. Department of Housing and Urban Development (HUD) has finally issued its much-debated disparate impact rule. HUD argues that the rule—which it plans to apply retroactively—is simply a codification of its existing position that the Fair Housing Act authorizes disparate impact claims. But the rule goes well beyond that. It articulates a burden-shifting framework that places significant new legal burdens onto defendants, and it “clarifies” the standard for “business justification” that HUD had originally proposed into a test that courts have affirmatively rejected.
To read the full alert, click here.