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In May 2024, HUD issued Fair Housing Act Guidance on Applications of Artificial Intelligence. The guidance is covered by a press release. The Department of
released two guidance documents addressing the application of the Fair Housing Act to two areas in which the use of artificial intelligence poses particular concerns: the tenant screening process and its application to the advertising of housing opportunities through online platforms that use targeted ads. Today’s announcement is in accordance with President Joe Biden’s Executive Order, which called on HUD to provide guidance to combat discrimination enabled by automated or algorithmic tools used to make decisions about access to housing and in other real estate-related transactions.
The press release references E.O. 14110 (88 Fed. Reg. 75191, Nov. 1, 2023). HUD said that the FHA
prohibits both intentional housing discrimination and housing practices that have an unjustified discriminatory effect. Housing providers and tenant screening companies both have a role to play in ensuring that tenant screenings are transparent, accurate, and fair. The tenant screening guidance makes clear that use of third-party screening companies, including those that use artificial intelligence or other advanced technologies, must comply with the Fair Housing Act, and ensure that all housing applicants are given an equal opportunity to be evaluated on their own merit.
References:
- Guidance on Application of the Fair Housing Act to the Screening of Applicants for Rental Housing.
- Guidance on Application of the Fair Housing Act to the Advertising of Housing, Credit, and Other Real Estate-Related Transactions through Digital Platforms.
- A joint statement signed by Rohit Chora, Director, CFPB; Kristen Clarke, Assistant Attorney General for Civil Rights Department of Justice; Brian Boynton, Principal Deputy Assistant Attorney General for Civil Division Department of Justice; Demetria McCain, Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity Department of Housing and Urban Development; Catherine E. Lhamon, Assistant Secretary for Civil Rights Department of Education; Melanie Fontes Rainer, Director of Office for Civil Rights Department of Health and Human Services; Shoba Sivaprasad Wadhia, Officer for Civil Rights and Civil Liberties Department of Homeland Security; Seema Nanda, Solicitor of Labor Department of Labor; Charlotte A. Burrows, Chair Equal Employment Opportunity Commission; Lina M. Khan, Chair Federal Trade Commission
- “HUD’s release of the tenant screening guidance also fulfils a commitment HUD made in the Biden-Harris Administration’s Blueprint for a Renters Bill of Rights.”