Fair Housing

A South Dakota property manager who treats all applicants equally but uses a credit score cutoff that disproportionately excludes minorities may be liable under:

AThe disparate treatment theory only
BThe disparate impact theory of the Fair Housing Act✓ Correct
COnly the Equal Credit Opportunity Act
DNo law, as neutral policies cannot be discriminatory

Explanation

Disparate impact theory allows fair housing claims when a facially neutral policy disproportionately harms a protected class, even without discriminatory intent, unless the policy is justified by legitimate business necessity.

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