Recent Action by Congress Limiting Use of Disparate Impact May Affect Landlords and Rentals, States TenantScreeningUSA.com

Jun 25th, 2015 | By | Category: Apartment Rental

Recent Action By Congress Limiting Use Of Disparate Impact May Affect Landlords And Rentals, States TenantScreeningUSA.com

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Recent Action By Congress Limiting Use Of Disparate Impact May Affect Landlords And Rentals, States TenantScreeningUSA.com
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TenantScreeningUSA.com

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Disparate influence is a complicated legal issue, one not easily explained.

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From the National Fair Housing web site, disparate impact, as associated to housing, is defined as such (Jan. 15, 15):

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“Disparate Impact is a legal doctrine beneath the Fair Housing Act which means that a policy or practice could be regarded discriminatory if it has a disproportionate “adverse influence” against any group based on race, national origin, color, religion, sex, familial status, or disability.” (1)

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In Washington DC the Home of Congress not too long ago passed an amendment limiting the use of “disparate influence” as employed in housing litigation by the Division of Justice. This action is in advance to an upcoming Supreme Court ruling with regards to a similar problem, due at the end of June 2015.

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From housingwire.com (Jun 03, 15):

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“The Home passed his amendment to H.R. 2578, the Fiscal Year 2016 Commerce, Justice, and Science Appropriations Act. The amendment would bar the Division of Justice from employing funds for litigation in which they seek to apply disparate effect theory.” (2)

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Even though the full impact of this new amendment is yet to be totally felt it is a clear indication of the potential legal morass within the housing and rental industry.

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Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Just as the disparate effect theory impacts pre-employment background screening, disparate effect can have an effect on the rental industry. Clearly the action by the Property could have an effect on how landlords and house managers conduct screening. Combined with the upcoming SCOTUS opinion, higher scrutiny will surely be placed on how vetting rental applications with tenant background checks is carried out with various protected classes.”

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From bankingjournal.aba.com (Jun 04, 15):

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“…Under HUD’s rule, a lender, apartment owner, apartment manager or housing cooperative could be challenged if these practices yield diverse results for a protected class, and also face serious reputational harm and considerable fees of defense.” (3)

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By the finish of June 2015 the Supreme Court will have ruled on the concern of disparate influence and, possibly, supply additional guidance as to the use of this legal tool. Although the outcome is nonetheless in question undoubtedly the outcomes will lead to a wonderful deal of change within the housing market and, subsequently, the rental market place.

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Almeida states: “At the core of the ruling is the use of disparate effect inside a legal context. The Residence action combined with the prospective Supreme Court ruling could drastically modify the legal environment not only with lending but with renting also. Landlords will have to remain very clear and practiced in their rental policies and use of tenant screening, and it is vital they function with third-party tenant screening organizations to remain compliant.”

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TenantScreeningUSA.com is a third-celebration tenant screening firm that can give screening packages for landlords and property managers with property holdings huge and modest. Specializing in regional, state, and Federal compliance, TenantScreeningUSA.com can assist landlords and property managers in avoiding missteps with tenant screening policies.

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Notes:

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(1)    nationalfairhousing.org/publicpolicy/disparateimpact/tabid/4264/default.aspx&#13

(2)    housingwire.com/articles/34087-property-passes-amendment-to-limit-disparate-influence-far-beyond-housing-policy&#13

(three)    bankingjournal.aba.com/2015/06/aba-groups-welcome-amendment-to-limit-disparate-influence/

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Recent Action By Congress Limiting Use Of Disparate Impact May Affect Landlords And Rentals, States TenantScreeningUSA.com
Recent Action By Congress Limiting Use Of Disparate Impact May Affect Landlords And Rentals, States TenantScreeningUSA.com
Recent Action By Congress Limiting Use Of Disparate Impact May Affect Landlords And Rentals, States TenantScreeningUSA.com
Recent Action By Congress Limiting Use Of Disparate Impact May Affect Landlords And Rentals, States TenantScreeningUSA.com

Recent Action By Congress Limiting Use Of Disparate Impact May Affect Landlords And Rentals, States TenantScreeningUSA.com

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