Tag Archives: Disparate Impact

The U.S. Supreme Court ruled on Thursday by a 5-4 vote in the case of Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc. that disparate impact claims can legally be brought about under the Fair Housing Act of 1968.

With word the highly anticipated disparate impact ruling expected to come forth by the end of June, industry leaders cannot help but grow increasingly curious regarding this Supreme Court case. The Supreme Court heard the case of Texas Department of Housing and Community Affairs, et al. (Texas) v. Inclusive Communities Project, Inc. (IC) on January 21 and have yet to make a decision on this case.

Members of the U.S. Supreme Court convened Wednesday to spar with attorneys—and each other—in a case that could narrow long-held interpretations of a federal law barring housing discrimination.

The case scheduled to be heard later this month centers on claims that the Texas state housing department's fixed criteria for approving tax credits for low-income housing developers resulted in the approval of such credits for a larger percentage of developers in areas more heavily populated by minorities than in areas more populated by whites.

U.S. District Judge Richard Leon ruled this week that only claims of direct, intentional discrimination could be made under the Fair Housing Act, which was passed in 1968. While the Fair Housing Act does not specifically state it allows disparate claims lawsuits, courts have allowed them for years.