Fair Housing

A Texas apartment complex uses an automated AI-based screening system that was not intentionally designed to discriminate but consistently rejects applicants from certain zip codes that correspond to minority communities. This may violate the Fair Housing Act based on:

AIntentional discrimination theory only
BDisparate impact theory, even without discriminatory intent✓ Correct
CThe ADA for disability discrimination
DOnly TREC regulations, not federal law

Explanation

Even without discriminatory intent, screening tools that have a statistically significant disparate impact on protected classes may violate the Fair Housing Act under the disparate impact theory recognized in the Inclusive Communities case. Landlords must ensure their screening criteria are not proxy discrimination for protected class membership.

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