In a decisive move toward equity, Attorney General Kris Mayes has joined forces with a coalition of 18 attorneys general to support the enforcement of the Department of Housing and Urban Development's (HUD) Discriminatory Effects Rule, a regulation designed to address subtle forms of housing discrimination; the brief was filed in response to the homeowners insurance industry's lawsuit challenging the rule's validity, according to a recent press release from Mayes' office.
The contested HUD rule operates under the Fair Housing Act and holds insurers, among others, accountable for housing practices that, while not overtly discriminatory, disproportionately harm certain populations based on race, national origin, and other protected traits, however, the insurance industry argues that not exempting homeowners insurers from the rule is a mistake, citing states that expect insurers to adhere strictly to market-based factors for underwriting decisions.
"Now more than ever, it’s vital that we push back on any discriminatory housing practices. Whether it’s lenders, insurers or price-fixing schemes – there is no excuse or place for these unfair practices in Arizona, or across our nation," Mayes stated.
The coalition, which includes attorney generals from states like California, Colorado, and New York, argue that the insurance companies' request for an exemption does not hold water as many states' laws already reflect the principles of disparate-impact liability, a contention supported by Mayes and the conglomerate of legal leaders
Arizona's own fair housing laws echo the federal legislation, highlighting an ongoing battle against the remnants of a discriminatory past that includes restrictive covenaments and biased lending processes—tactics that have left a lasting impact and are still felt today; acknowledging this, Mayes' office underscores the importance of the HUD rule as an indispensable weapon in the fight for fair housing.
The brief submitted by Attorney General Mayes and colleagues was directed to the U.S. Court of Appeals for the District of Columbia Circuit and emphasizes the importance of disparate-impact liability as an effective instrument in combating housing discrimination, maintaining it as a vital agent for the cessation of residential segregation practices that are persistent and pervasive.
