Illinois Attorney General Kwame Raoul and his District of Columbia counterpart, Brian Schwalb, have taken the helm of a group of 18 attorneys general in a concerted effort to uphold fair housing practices. They've filed an amicus brief in the U.S. Court of Appeals for the District of Columbia Circuit, advocating for the preservation of the Department of Housing and Urban Development's (HUD) Discriminatory Effects Rule.
The rule in question, a provision under the Fair Housing Act, operates on the principle that homeowners insurance should be accessible and devoid of bias, even if not explicit. According to the Illinois Attorney General's office, Raoul emphasized, "Discriminatory insurance policies should not be tolerated as we work to ensure all homeowners, regardless of race, national origin or other protected characteristic, have access to fair housing." However, the challenge arises from insurers insisting that the HUD rule does not accommodate the fact that many states mandate market-based factors solely for underwriting decisions.
The coalition argues that the rule serves as a key deterrent against housing discrimination, a phenomenon deeply entrenched and often responsible for residential segregation. While the insurance industry has sued to have the HUD's rule invalidated for homeowners insurers, citing state laws as a shield, the coalition remains firm, as per the Illinois Attorney General's office. State laws, they say, already factor in disparate-impact liability, which suggests the industry's call for an exemption under state law grounds is misguided.
With legal momentum on their side, following a district court's upholding of the HUD rule in March 2024, citing the coalition's brief as a "significant" factor, Raoul's group continues to fight for these discriminatory effects safeguards.
