HUD Issues Fair Housing Act Guidance

Industry News,

On May 2, 2024, the U.S. Department of Housing and Urban Development (HUD) released two guidance documents regarding the use of artificial intelligence in the resident screening process and its application to targeted advertisements on online platforms.

The National Apartment Association (NAA) expected the release of HUD’s new guidance as the agency seeks to fulfill its commitments to the White House Blueprint for a Renters Bill of Rights. NAA anticipates heightened federal regulatory activity in May before the next Congressional Review Act (CRA) deadline. Changes in federal policy that are subject to the CRA and announced after this deadline have a greater risk of rollbacks if there is a second Trump term.

HUD’s guidance does not represent changes to the Fair Housing Act; however, it does reflect the Biden Administration’s interpretation of renters’ protections under the Act. The resident screening guidance suggests that housing providers are liable for ensuring their rental decisions comply with the Act even if they outsource screening to a third party. Moreover, HUD reiterates that the rental housing industry plays a crucial role in ensuring prospective residents are screened in a transparent, accurate and fair manner.

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