NLIHC Joins Letter Opposing HUD Plans to Dismiss Housing Discrimination Cases Based on Disparate Impact Allegations 

By Kayla Springer, NLIHC Policy Intern  

NLIHC joined a National Fair Housing Alliance (NFHA) letter expressing grave concern about HUD’s reported plans to dismiss seven major fair housing cases that allege disparate impact discrimination, including cases where HUD has already discovered civil rights violations. HUD has long interpreted the “Fair Housing Act” to prohibit practices that have a disparate impact on certain protected classes, even without intent to discriminate, making the disparate impact standard a crucial tool for remedying harmful and unlawful housing practices. Closing the cases would allow the discrimination alleged in the cases to continue and potentially set a precedent for future discrimination without fear of punishment from the federal government.  

“Disparate impact has, for decades, served as a vital tool to root out and remedy policies and practices that unfairly harm protected classes—even when race or other characteristics are not explicitly mentioned,” the letter’s authors write. The disparate impact rule is a longstanding fair housing protection against policies that unfairly burden or exclude members of protected classes without sufficient justification. Since the adoption of the “Fair Housing Act,” disparate impact claims have been affirmed by the Supreme Court and numerous Courts of Appeals, and the rule has been successfully leveraged to block discriminatory practices such as redlining, appraisal bias, and exclusionary zoning and land-use policies.   

In April 2025, the Trump Administration issued an Executive Order eliminating the use of disparate impact liability, pushing HUD to reconsider its disparate impact rule under the “Fair Housing Act” (See Memo, 4/28). In July 2025, ProPublica revealed HUD’s plans to dismiss the seven high-profile housing discrimination investigations, which involved allegations that state and local governments had engaged in illegal discrimination through the placement of industrial plants and low-income housing developments in neighborhoods of color. HUD has already determined fair housing violations in three of the cases.   

The letter’s signatories urge HUD to:  

• Reaffirm commitment to enforcing the disparate impact standard.  
• Continue to pursue all ongoing fair housing investigations and charges.  
• Reject any interpretation of the April executive order that nullifies HUD’s ability to apply the disparate impact rule.  
• Retain fair housing experts within the HUD Office of Fair Housing and Equal Opportunity to investigate and adjudicate fair housing complaints.  
• Fully enforce and uphold all provisions of the “Fair Housing Act.”  

“Our nation’s civil rights history reminds us that seemingly neutral policies often mask intentional discrimination and deep structural inequities. The disparate impact doctrine remains a vital mechanism for exposing and remedying these injustices,” state the letter’s authors. NLIHC joins NHFA in calling on HUD to reject attacks on fair housing protections and uphold the right of all individuals to access safe, quality, accessible, and affordable housing.  

Read NFHA’s press release here and find the full text of the letter here. 

Learn more about fair housing and the disparate impact rule here.