HUD Issues New Guidance on Fair Housing Act Compliance with AI and Algorithms
The U.S. Department of Housing and Urban Development (HUD) has released two critical guidance documents aimed at ensuring fair housing practices in the era of artificial intelligence (AI) and algorithmic decision-making. These documents address the application of the Fair Housing Act in tenant screening processes and housing advertisements that utilize AI and targeted ads.
Tenant Screening and AI
The first guidance document delves into the fair housing issues arising from tenant screening practices, especially the growing reliance on third-party screening companies and the use of machine learning and AI.
HUD emphasizes that the Fair Housing Act prohibits both intentional discrimination and practices with an unjustified discriminatory effect. Housing providers and tenant screening companies must ensure their processes are transparent, accurate, and fair, giving all applicants an equal chance based on their merits.
2. Advertising and AI
The second guidance document addresses the risks associated with targeted advertising tools housing advertisers and online platforms use.
It highlights how violations of the Fair Housing Act can occur when these tools deny consumers housing information based on protected characteristics. The guidance warns against targeting vulnerable consumers with predatory products or creating advertisements discouraging or deterring certain groups from applying. HUD aims to ensure that AI and algorithms in housing advertising do not perpetuate discrimination.
Commitment to Fair Housing
This initiative aligns with President Joe Biden's Executive Order to combat discrimination enabled by automated housing and real estate transaction tools. HUD's Acting Secretary Adrianne Todman stated, "HUD is committed to fully enforcing the Fair Housing Act and rooting out all forms of discrimination in housing." The release of these documents follows HUD's pledge to uphold civil rights laws as new technologies become more prevalent.
HUD's release of these guidance documents also fulfills a commitment made in the Biden-Harris Administration's Blueprint for a Renters Bill of Rights. This move marks a significant step towards promoting fairness and equality in housing, ensuring that advancements in technology do not undermine the principles of the Fair Housing Act.
For more details, read the tenant screening guidance here and the online platforms guidance here.
