HUD Proposed Eliminating Fair Housing Act Disparate Impact Rules

The federal Department of Housing and Urban Development (HUD) proposed removing three Fair Housing Act rules used to determine whether the sale, rental, or financing of dwellings has had a discriminatory disparate impact, even when practices were not intended to discriminate. The proposed rule was issued on January 14, 2026.

In a departure from its usual 60-day or longer public comment period, HUD set a comment deadline of February 13, 2026. The proposed rule stated that interpretations of disparate impact discrimination under the Fair Housing Act are a “matter best left to the courts.”

The proposed rule stated that . . .