On January 14, HUD proposed a rule to rescind its regulations addressing disparate impact liability under the Fair Housing Act. The agency explained that questions about whether a housing practice has an unjustified discriminatory effect (even absent discriminatory intent) should be made by courts rather than prescribed by agency regulation. HUD’s proposal follows Executive Order 14281, which directs federal agencies to eliminate disparate impact liability to the maximum extent possible and emphasizes that equal treatment under the law “guarantees equality of opportunity, not outcomes” (previously covered by InfoBytes here).

According to HUD, removal of the rules was justified in light of recent U.S. Supreme Court decisions, including overturning the Chevron doctrine (covered by InfoBytes here). The agency also noted that its previous rules had generated tens of thousands of public comments over multiple rulemakings and that the legal landscape “continues to develop” through case law. HUD asserted that removing the regulations would reduce regulatory burdens and align with broader deregulatory initiatives, while not altering any requirements or affecting rights and obligations under the Fair Housing Act. Comments on the proposed rule must be submitted by February 13.