WASHINGTON (6/26/15)--The U.S. Supreme Court decided 5-4 Thursday to uphold a concept known as “disparate impact."
Disparate impact allows statistics to be used to establish claims of discrimination without proving intent to discriminate. The high court’s decision in Texas Department of Housing and Community Affairs v. Inclusive Community Project, Inc. found that the Fair Housing Act allows use of the bias standard that only has to prove uneven treatment, not intent.
While CUNA supports compliance with all fair lending and housing laws, it has concerns that, under the disparate impact test, lenders and property owners that take every step to prevent discrimination and treat consumers fairly and equally could still be subject to discrimination claims.
CUNA supports language in the Transportation, Housing and Urban Development and Related Agencies Appropriations Act for Fiscal Year 2016 (H.R. 2577) that would prohibit the U.S. Department of Housing and Urban Development from using its funds to implement, administer or enforce the disparate impact test. This legislation passed the House by a 216-210 vote in early June.