On May 26, Maryland Governor Wes Moore signed into law HB 573, amending the state’s fair housing statutes to prohibit housing practices that have a discriminatory effect, regardless of intent. The law, which takes effect October 1, defines “discriminatory effect” as “an effect that actually or predictably has a disparate impact on a group of persons or creates, increases, reinforces, or perpetuates segregated housing patterns because of race, color, religion, sex, disability, marital status, familial status, sexual orientation, gender identity, national origin, source of income, or military status.” The law also authorizes the Department of Housing and Community Development to adopt regulations to carry out the state’s obligation to “affirmatively further fair housing.”

The law amends the state’s existing prohibited housing practices, which include refusing to sell or rent a dwelling, discriminating in the terms or conditions of a sale or rental, and making discriminatory statements or advertisements, among others, to incorporate that such practices may be committed “regardless of intent.” The law also adds a new express prohibition against acting “in a manner that has a discriminatory effect.” However, the law provides that a person has not violated these prohibitions if: (i) the action was without discriminatory intent; (ii) the action was necessary to achieve one or more “substantial, legitimate, and nondiscriminatory interests”; and (iii) the person could not have achieved those interests by “less discriminatory means.”