On February 11, a coalition of state attorneys general published a comment letter urging HUD to withdraw its proposed rule rescinding its “Discriminatory Effects Standard” under the Fair Housing Act (covered by InfoBytes here). The attorneys general argued that the current standard provides clarity, promotes compliance, reduces litigation burdens, and ensures consistent enforcement across the U.S. The letter warned that removing it would create confusion among housing providers, increase enforcement burdens for state fair housing agencies, undermine deterrence, and signal weakened federal enforcement, thereby increasing discrimination and segregation.

The attorneys general further contended that HUD’s justification misinterprets case law, fails to address reliance interests and regulatory costs, and violates the APA by offering no reasoned explanation for the change or good cause for shortening the comment period from the agency’s standard 60 days to 30. The comment letter asserted that discriminatory effects liability remains a lawful and essential tool to challenge unjustified practices that either disproportionately harm protected groups or perpetuate segregation, citing historical and ongoing housing inequities — including redlining, appraisal bias, and environmental injustice — as evidence of the continuing need for proactive enforcement.