Disparate Impact: The Supreme Court Case You Missed

This month the Supreme Court decided a important court case dealing with housing discrimination. Their ruling defined Disparate Impact which will have far reaching consequences for Realtors.  Here is a quick overview to keep you up-to-date:

Disparate Impact Defined:  a legal doctrine under the Fair Housing Act which states that a policy may be considered discriminatory if it has a disproportionate “adverse impact” against any group based on race, national origin, color, religion, sex, familial status, or disability when there is no legitimate, non-discriminatory business need for the policy

What It Means to Real Estate Professionals:  You can be the subject of a lawsuit without intending to be discriminatory. Intent or malice to discriminate does not need to be proven; only that a policy was developed with little attention to the potential impact it could have on a protected group.

Examples of Disparate Impact: (examples taken from here)

• Residential rules may also appear neutral while negatively impacting a protected class.  For example, condominium association or housing complex rules that ban doormats, signs and other materials in hallways could seem like a neutral policy, but in effect may amount to the eviction of observant Jewish residents on religious grounds, who would then be unable to post a mezuzah.
• Zoning ordinances that limit areas to single family residences or types of residences could, for example, have a discriminatory impact on people with disabilities.  Not because the zoning ordinance treats people differently, but rather because the policy might limit group homes or other arrangements necessary to accommodate an individual’s disability.

The Difference between Disparate Impact and Disparate Treatment: Disparate Treatment claims have to show malice and discriminatory intent. Disparate impact just needs to show culpability not intention.

More Articles discussing the Supreme Court Case:

• National Fair Housing Alliance: Disparate Impact
• What is Disparate Impact?
• National Association of Realtors: Supreme Court Ruling