Recently, HUD issued a new Guidance which purports to provide insight into avoiding possible fair housing violations in the use of Artificial Intelligence (AI) by screening companies. While the Guidance does discuss that issue, it goes much deeper into the areas of credit and criminal checks and purports to expand potential liability of landlords (in addition to screening companies).

“Guidances” issued by HUD are not law nor rule. They are intended to provide insight into how HUD will view certain actions as it relates to possible fair housing violations. As we deal with both HUD and the UALD, the investigators will utilize the Guidance as the roadmap towards making determinations. Ultimately, the Courts may have to determine if the Guidance is sound and viable under the existing terms of the Fair Housing Act.

Within this Guidance are many unfounded and bold statements that masquerade as “facts”. These are the most problematic issues for landlords because they attempt to establish a basis for the movement towards greater regulation.