Fair Housing

A Florida property management company uses an algorithm that automatically screens out applicants from certain zip codes with high minority populations. This may constitute:

AReasonable risk management
BDisparate impact discrimination under the Fair Housing Act✓ Correct
CLegal use of data-driven screening
DOnly a violation of state law, not federal law

Explanation

Policies that appear neutral but have a disproportionate adverse effect on a protected class constitute 'disparate impact' discrimination under the Fair Housing Act, even without discriminatory intent. The Supreme Court affirmed this standard in Texas Dep't of Housing v. Inclusive Communities Project (2015).

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