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» VISIT US ONLINE @ DSNEWS.COM 61 COVER STORY FROM THE BENCH INDUSTRY INSIGHT INDUSTRY INSIGHT » VISIT US ONLINE @ DSNEWS.COM 61 61 combat discriminatory practices, not just in housing but in all consumer financial markets." Not all lawmakers were thrilled with the Supreme Court's ruling, however. Even before the court had ruled Representative Scott Garrett (R-New Jersey), Chairman of the House Financial Services Capital Markets and Government Sponsored Enterprises Subcommittee, proposed the amendment to the Fiscal Year 2016 Commerce, Justice, and Science Appropriations Act. e act, including Garrett's amendment, passed largely along party lines by a vote of 242 to 173. "While everyone agrees that discrimination has no place in the lending practices of any respectable institution, the application of disparate impact theory has had devastating impacts on law-abiding businesses who have diligently maintained fair and consistent lending standards," Garrett said. Congressman Jeb Hensarling (R-Texas), Chairman of the House Committee on Financial Services, was unimpressed. "America is based on equal opportunity, not equal results," he said. "e dubious legal theory of disparate impact and the Supreme Court's ruling pervert this founding principle. Discrimination in housing and lending on the basis of race, sex, or other prohibited factors is morally repugnant and against the law. Our government must continue to combat discrimination in housing and lending and punish those responsible. Inventing discrimination through a disparate impact theory, however, is not a helpful tool in fighting actual discrimination. "e Supreme Court's extension of disparate impact theory to the Fair Housing Act will hurt precisely those minority groups that our federal civil rights statutes set out to protect. In fact, disparate impact will have predictable, negative consequences for all Americans who will experience a less competitive and more expensive market for housing and credit—all without providing any meaningful support for the fight against actual discrimination." HUD STEPS IN Not one to be outdone by the Supreme Court, HUD announced the finalization of the Affirmatively Furthering Fair Housing Rule, which it says will help communities that receive HUD funding get the help they need to meet fair housing obligations in the use of HUD funds, according to an announcement from HUD. In addition to equipping these communities with data and tools to help them meet their fair housing obligations, additional guidance and technical assistance will be provided by HUD to assist local decision-makers on fair housing priorities and affordable housing and community development goals. e aim of the final rule is to provide participants in HUD programs with clear guidelines and data they need to achieve the goals outlined in the Fair Housing Act of 1968, which directs HUD and its program participants to promote fair housing and equal opportunity so that everyone can have access to affordable, quality housing regardless of race, color, national origin, religion, sex, disability, or familial status. HUD Secretary Julián Castro called the final rule "historic." It was issued at the urging of civil rights groups in order to dismantle segregation and promote integration in major metro areas that have historically been deeply segregated. "As a former mayor, I know firsthand that strong communities are vital to the well- being and prosperity of families," Castro said. "Unfortunately, too many Americans find their dreams limited by where they come from, and a ZIP code should never determine a child's future. is important step will give local leaders the tools they need to provide all Americans with access to safe, affordable housing in communities that are rich with opportunity." e final rule is the result of recommendations of a 2010 report from the Government Accountability Office; stakeholders and HUD program participants who had asked for clarification, technical assistance, better compliance, and more meaningful outcomes; and feedback from significant public input and comments received during the final rule's development. HUD announced that in response to public feedback, the Department will phase in the implementation of the final rule to give grantees time to transition to the new balanced approach that includes targeted investments in revitalizing areas and increased housing choices in areas of opportunity, according to HUD. "We commend Secretary Castro and the entire HUD team's efforts to develop regulations designed to help housing and community development agencies across the United States better achieve our shared goals of overcoming historic patterns of residential

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