Texas Department of Housing and Community Affairs v. The Inclusive Communities Project
Issues
Does the Fair Housing Act include a right of action for disparate-impact claims?
In this case, the Supreme Court will determine whether the U.S. Department of Housing and Urban Development (“HUD”)’s interpretation of the Fair Housing Act (“FHA”) to include disparate-impact claims is subject to Chevron deference, which would result in disparate-impact liability under the FHA. The Texas Department of Housing and Community Affairs argues that the Court should not defer to the HUD’s interpretation, which it claims is unreasonable because the language of the FHA differs from other statutes that explicitly allow disparate-impact liability. Inclusive Communities, on the other hand, argues that the HUD’s interpretation is entitled to deference because it is reasonable, and is in fact the most favorable interpretation, given that the FHA’s goal of “remedy[ing] existing effects of prior intentional segregation.” This case will ultimately determine the breadth of the rights of action under the FHA for discrimination in affordable housing.
Questions as Framed for the Court by the Parties
1. Are disparate-impact claims cognizable under the Fair Housing Act?
2. If disparate-impact claims are cognizable under the Fair Housing Act, what are the standards and burdens of proof that should apply?
NOTE: The Supreme Court has limited its inquiry to Question 1.
The Petitioner, Texas Department of Housing and Community Affairs (“TDHCA”), is a state agency that allocates Low Income Housing Tax Credits (“LIHTCs”) to housing developers. See Inclusive Communities Project, Inc. v.
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Additional Resources
• Nicole Flatow: The Supreme Court is Poised to Cripple the Federal Ban On Housing Discrimination, Thinkprogress.org (Oct. 2, 2014).
• Sam Hananel: Supreme Court to Hear Another Case On Housing Bias, Huffington Post (Oct. 2, 2014).