RENT Magazine Q3 '24

HUD ENFORCEMENT AND ITS EFFECT ON YOU As mentioned in both notices, HUD will establish regular oversight of the use of AI and algorithmic tools, similar to the oversight of all advertising. Furthermore, if a complaint is filed, any violations found based on the use of such tools will be enforced. These changes to how HUD is handling advertisement cases highlight the necessity to review your company’s use of such tools and processes and ensure you also have appropriate policies in place. Remember what AI stands for: Artificial Intelligence. Only your human oversight can comprehend the nuances of potentially discriminatory policies while ensuring that your property is taking steps to avoid them. While such digital programs and services were not explicitly prohibited, it is important to ensure they don’t regularly replicate discriminatory practices. Identify the risk, react swiftly, and consistently revisit active programs or services using AI and algorithmic functions.

• Auto-generated denials don’t allow for exceptions to the set criteria. Therefore, any recommended denial should first pass through the housing provider, who should make an independent determination as to whether the negative information in the report is actually relevant and/or disqualifying. • Managers or other decision makers should be aware that considering relevant and mitigating factors is key when making application decisions. • The notice also stresses the importance of permitting an applicant to contest inaccurate, incomplete, or irrelevant records identified during the screening process. Based on HUD’s notice and the very wide net it casts on screening procedures that are now considered to be discriminatory, it may be necessary to update the policies and procedures involved in your application process. This may mean changing your criteria or your programs. It is important to make sure that any decision made during the screening process does not result in unintentional discriminatory outcomes. Second, review your process for making approval/denial decisions, and the screening company’s role in that process.

KATHELENE WILLIAMS Attorney and President The Fair Housing Institute

Kathi Williams is one of the founders of Fair Housing Institute. FHI is the accomplished vision of Kathi who views its educational courses as the best method housing providers can use to accomplish compliance and avoid litigation. Kathi is also a partner in the Law Firm of Williams Edelstein Tucker, P.C. providing defense and preventative representation for the housing industry in all civil rights matters. During the many decades Kathi has been advising her housing provider clients, she developed a unique understanding of the most effective methods of communicating fair housing best practices through training. Click here to watch Fair Housing Educational Videos.

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