The United States Supreme Court recently heard oral arguments related to Texas Department of Housing and Community Development (TDHCA) vs. Inclusive Communities Project (ICP), a case that is examining whether or not disparate impact is “cognizable” under the Fair Housing Act, or, whether the term can be used as a legal argument. Disparate impact is considered fair housing laws or practices that unintentionally and negatively impact minorities and/or other protected classes and may ultimately have the same negative impact as direct discrimination.
TDHCA vs. ICP originated as a case about whether TDHCA’s Low-Income Housing Tax Credit (LIHTC) allocation decisions have a disparate racial impact, albeit unintentional. While the Supreme Court will not be considering whether or not fair housing can be used as a criteria in the Texas Qualified Action Plan (QAP), they will whether decide disparate impact can be used as a legal argument in fair housing cases. The Supreme Court’s ruling could have a long-term impact on the LIHTC program and other community development tools.
Click here to read more about TDHCA vs. ICP.
