Fair Housing

Which of the following describes 'disparate impact' in fair housing?

AA policy that explicitly names a protected class
BA facially neutral policy that has a disproportionately negative effect on a protected class✓ Correct
CA direct refusal to rent based on race
DAn advertisement using code words for a protected class

Explanation

Disparate impact theory holds that a facially neutral policy or practice can violate fair housing law if it has a disproportionate negative effect on members of a protected class, even without discriminatory intent — unless the policy is justified by legitimate business necessity.

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