The U.S. Supreme Court will hear a case that will determine whether Texas can be sued for disparate impact under the Fair Housing Act (FHA) for how it assigned low-income tax credits in Dallas. The case holds implication for many industries, as it could eliminate certain litigation that has used the FHA to force changes in business practices by alleging disparate impact. If the court finds that the FHA requires a showing of some intent to discriminate, many industry leaders will breathe easier knowing their policies aren't subject to this scrutiny.
"Most developers don't believe they're discriminating anyway," Appellate attorney Lynn Calkins said. "But it certainly would put them at ease that they can continue to follow the policies they believe are doing best for their tenants and residents and not have to worry about claims from the government or nonprofit groups."
READ: High Court Housing Case Could Ease Discrimination Claims (subscription may be required)
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