Fair Housing

A Colorado property manager implements a 'no criminal background' screening policy that disproportionately screens out applicants of one race. HUD guidance suggests this may:

AAlways be legal as criminal history is not a protected class
BConstitute discriminatory disparate impact if the policy is overly broad and not justified by business necessity✓ Correct
COnly be illegal if the manager intended to discriminate
DOnly apply to federal housing programs

Explanation

HUD's 2016 guidance on criminal background screening states that blanket bans on applicants with any criminal record may have disparate impact on protected classes and may violate the FHA. Policies must be narrowly tailored to the legitimate goal of safety and business necessity.

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