Fair Housing

A Washington property management company uses a background check service that has a higher denial rate for applicants from certain racial groups. This policy may constitute a Fair Housing violation based on:

ADiscriminatory intent (disparate treatment)
BDisparate impact theory — a neutral policy that has a disproportionate effect on a protected class✓ Correct
CIntentional discrimination only
DOnly violates state law, not the federal Fair Housing Act

Explanation

A neutral policy that has a disproportionate adverse effect on a protected class can constitute illegal disparate impact discrimination under the Fair Housing Act, even without discriminatory intent, unless it is justified by a legitimate business necessity.

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