Facially Neutral Bylaws/Rules/Regs May Subject an Association to Liability Under the Fair Housing Act

/ Owner - July 10, 2015

On June 25, 2015, the United States Supreme Court decided Texas Dep’t of Housing and Community Affairs v. Inclusive Communities Project, __ US __ (2015), a decision that affects community associations throughout the country, including in Michigan. In a surprise to many court observers, the Supreme Court endorsed the disparate impact theory of liability under the federal Fair Housing Act, 42 U.S.C. § 3601, et seq., (the “Act”), as opposed to the stricter standard of disparate treatment. Under a disparate impact theory, a plaintiff does not have to prove discriminatory intent. This is in contrast to a disparate treatment theory of liability, under which liability depends on whether a protected trait “actually motivated” the decision being challenged.     Read the article………..

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