HUD Defendants Enter Unopposed Motion to Stay Challenge to Disparate Impact Rule

Disparate Impact FHA

On August 15, the defendants to an action initiated by two insurance trade groups challenging the HUD rule authorizing “disparate impact” or “effects test” claims under the Fair Housing Act entered an unopposed motion for a stay of proceedings pending the outcome of the U.S. Supreme Court’s decision in Township of Mount Holly, New Jersey, et al. v. Mt. Holly Gardens Citizens in Action, Inc., et al., No. 11-1507. In requesting the stay, the defendants argue that the Mt. Holly appeal turns on the “same issues of statutory interpretation” presented by the trade groups’ challenge to the HUD rule; that is, whether a disparate impact theory of liability is cognizable under the Fair Housing Act.