GOP Lawmakers Urge HUD to Review and Amend Out-of-Date Disparate Impact Rule

A group of Republican lawmakers wrote Housing and Urban Development Secretary Ben Carson on November 15th about the agency's out-of-date disparate impact stating that the rule is inconsistent with current Supreme Court precedents on disparate impact theory and could be negatively affecting HUD’s housing goals.

“Local governments, commercial and residential lenders, issuers, developers, and other mortgage industry service providers are less inclined to participate in housing projects because HUD’s disparate impact rule does not comply with the Supreme Court’s rulings,” the lawmakers wrote. “This inconsistency will reduce housing production, which in turn will increase housing expenses for many Americans, including those who can least afford it.”

The lawmakers urged HUD to make changes to the rule, adding that it “is a prime candidate for reconsideration” under an executive order issued by President Trump earlier this year calling on agencies to evaluate outdated, unnecessary or ineffective regulations, as well as those that impose costs that outweigh benefits.

Below is the letter.