Disparate Impact and HUD Guidance on Criminal Background Checks (AHA373A)

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Complying with New HUD Guidance on Disparate Impact and Criminal Background Checks

On April 4, 2016 HUD released a guidance letter regarding blanket criminal background checks. This is basically a type of disparate impact that affects those with criminal backgrounds.

Disparate impact is defined by HUD as a violation of the Fair Housing Act when the landlord’s policy or practice looks non-discriminatory and has no intent to discriminate but leads eventually to a discriminatory effect. A landlord may treat all applicants exactly the same, but the application process results negatively against a protected class resulting in a disparate impact.

On the other hand, criminal background checks can come into play with disparate impact even if a landlord runs a background check evenly and against every prospective tenant. However, the landlord may end up discriminating against minorities because they are arrested, convicted and incarcerated disproportionate to their share of the general population. All these rules make achieving compliance a complex and challenging task for owners, managers and agents of multifamily properties.

This webinar by expert speaker Paul Flogstad will explore the basics of fair housing, disparate impact and the new HUD ruling. He will also address the many challenges arising because of the new guidance and discuss strategies to maintain compliance. Paul will examine in detail all the facets of this ruling and what it means under fair housing guidelines. Taking the April, 2016 guidance letter in consideration, he will examine the changes in policies and procedures of multifamily properties as to how to implement this guidance.

Session Highlights

• Basics of Fair Housing
• Seven federal protected classes
• Steering
• Reasonable accommodation
• Reasonable modification
• Assistive animals
• Definition of Disparate Impact
• What is “Adverse Impact”
• How does this affect the protected classes
• Disparate impact theory under Title VII
• How does this ruling affect development activities going forward
• Understanding the new HUD guidance letter and the impacts it will have on property owners and managers when it comes to applicants applying to your property who have a criminal or felony background, especially when you have a blanket policy of not allowing anyone with a criminal background
• How the ruling affects certain protected and non-protected classes
• What is the difference between arrests and convictions and how does that pertain to the guidance letter

Who should attend

• Property Managers
• Property owners
• Maintenance Staff
• Lenders
• Realtors
• Developers – especially those who have tax credit or HUD
• Bankers
• Builders