HUD Issues Fair Housing Act Guidance on Use of Artificial Intelligence

person A.J. Johnson today 05/11/2024

On May 2, 2024, the Department of Housing & Urban Development (HUD) released two guidance documents addressing the application of the Fair Housing Act (FHA) to two areas in which the use of artificial intelligence (AI) poses particular concerns: the tenant screening process and its application to the advertising of housing opportunities through online platforms that use targeted ads. This guidance follows an Executive Order from President Biden that required HUD to provide guidance to combat discrimination enabled by algorithmic tools used to make leasing decisions.

This guidance clearly states that the FHA applies to tenant screening and housing advertising, including when AI performs these functions.

The tenant screening guidance describes fair housing issues created by tenant screening practices, including the increasing use of third-party screening companies to aid tenant screening decisions and the emerging use of machine learning and AI. The guidance also suggests best practices for fair, transparent, non-discriminatory tenant screening policies for housing providers and companies offering tenant screening services.

Housing providers and tenant screening companies are crucial in ensuring that tenant screenings are transparent, accurate, and fair. The tenant screening guidance underscores that the use of third-party screening companies, including those that use AI or other advanced technologies, must comply with the FHA. It also emphasizes the importance of ensuring that all housing applicants are given an equal opportunity to be evaluated on merit, making you feel responsible and accountable for fair practices.

Advertisers and online platforms should be acutely aware of the risks of deploying targeted advertisement tools for ads covered by the FHA. Violations of the Act can occur when certain ad targeting and delivery functions unlawfully deny consumers information about housing opportunities based on their protected characteristics. Similarly, violations can occur when ad targeting and delivery functions are used, based on protected characteristics, to target vulnerable consumers for predatory products or services, display content that could discourage or deter potential consumers, or charge different amounts for delivered advertisements. This highlights the need for caution and strict adherence to the FHA.

Owners and managers using third-party screening services for applicant selection should carefully review this new HUD guidance. I will provide future articles analyzing both the screening guidance and the use of online platforms.

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A. J. Johnson to Participate in 29th Annual Mid-Atlantic AHMA Fall Conference

A. J. Johnson will participate in the Mid-Atlantic Affordable Housing Management Association (AHMA) 29th Annual Fall Conference, which will take place in Richmond, VA, from November 19-21, 2024. This year's conference promises to be invaluable for professionals in the affordable housing industry, offering a comprehensive program that addresses both current challenges and future trends.  Highlights of the Conference: 1. HOTMA Implementation and Beyond While the Housing Opportunity Through Modernization Act (HOTMA) remains a focal point, this year's conference expands its scope to cover many pressing issues in affordable housing management. Attendees will gain insights on HOTMA implementation and other critical topics that impact their daily operations. 2. Diverse Learning Tracks  The conference features multiple specialized tracks to cater to various roles and interests within the industry:  - General Interest Track  - LIHTC Track  - HUD Track  - Special Interest Track  - Maintenance Workshop Track  3. Expert-Led Sessions  Renowned industry experts, including A. J. Johnson, Jenny DeSilva, and Dr. Dori Bryan-Ployer, will lead sessions on topics such as conflict resolution, marketing strategies, cyber awareness, and the impact of HOTMA on different housing programs. 4. A. J. Johnson will lead a discussion on Hot Topics in Affordable Housing Sessions and will cover crucial subjects like:  - Assistance animals and medical marijuana policies  - Violence Against Women Act (VAWA) compliance  - Fair housing in the age of artificial intelligence  - Dealing with the Death of a Resident  - Preventing Sexual Harassment  - HOTMA Income and Asset Issues  - Management of Layered Projects  5. Other Topics Featuring Industry Leaders such as Jenny DeSilva and Angelique Napoleon will include: - EIV/TRACS and HOTMA  - Understanding Human Trafficking  6. Hands-On Maintenance Workshops  A dedicated track for maintenance professionals offers practical sessions on HVAC systems, motor operations, and effective preventative maintenance planning.  7. Networking Opportunities  The conference includes a vendor exhibition and reception, providing ample opportunities for attendees to connect with peers and industry suppliers.  8. Keynote Address  The event starts with a keynote address titled "Embrace Uncommon Sense: Boost Workplace Engagement and Wellbeing," which sets an inspiring tone for the conference.  Who Should Attend:  This conference is essential for property managers, compliance officers, maintenance supervisors, asset managers, and anyone involved in the affordable housing industry. Whether you're dealing with LIHTC, HUD programs, or mixed-finance properties, there's something valuable for every professional.  Take advantage of this opportunity to stay ahead in the ever-evolving world of affordable housing management. Join us for three days of learning, networking, and professional growth at the Mid-Atlantic AHMA 2024 Fall Conference.  Register now at mid-atlanticahma.org to secure your spot at this premier industry event!

Rural Development Issues Emergency Call System Guidance

The Rural Housing Service (RHS) has issued an Unnumbered Letter providing guidance to Multifamily Housing (MFH) staff and program participants regarding emergency call systems, also referred to as "pullcords in MFH units. Installing and using emergency call systems in MFH units, commonly in bathrooms and bedrooms, have historically provided a means for tenants to alert others if they require assistance in the case of an emergency, such as a fall, fire, or medical issue. Many installed emergency call systems no longer function and provide a false sense of security, leading tenants to believe the system will directly alert emergency response services or property management. Additionally, the need for emergency call systems has diminished due to the availability and advancements in technology, such as cell phones and personal medical/life alert equipment. The purpose of the Unnumbered Letter is to inform RHS staff and property operators that RHS does not require emergency call systems in any MFH units. However, some MFH properties still have these systems. Rural Development requires the system to be operational if an emergency call system is in place in any unit. MFH properties that continue to utilize emergency call systems must ensure that the systems work as designed. The system must be regularly inspected per state and local laws. If a property previously used an emergency call system and it is no longer operational, the inoperable system must be removed. Owners and managers are responsible for ensuring that tenants understand how the emergency call system functions. It is recommended that owners provide written instructions and a demonstration of the system to tenants. Recommendations include: Step-by-step instructions on how to use the system. Guidance to tenants on what services are available in response to the system activation, including clarification that the system is not tied to and, therefore, not a substitute for 911 emergency services. Clearly marked features of the system in each unit. Steps on how to correct a false alarm if the system is accidentally activated or misused by residents or visitors. Steps on how to report problems with the emergency call system. In conclusion, while the Rural Housing Service (RHS) no longer mandates the installation of emergency call systems in Multifamily Housing (MFH) units, properties that choose to maintain these systems must ensure they are fully operational and regularly inspected. As advancements in personal alert technology provide reliable alternatives, MFH property owners and managers should prioritize educating tenants on the limitations and proper use of existing emergency call systems. This approach not only helps prevent misunderstandings about the system s capabilities but also enhances tenant safety by encouraging the use of more effective emergency response options.

2025 Social Security COLA Announced

The federal government announced on October 10, 2024, that the Social Security Cost of Living Adjustment (COLA) for 2025 will be 2.5%, slightly lower than the 3.2% increase for 2024. This increase will provide an additional $50 per month for the average retiree. Social Security recipients will receive a notice in the mail in early December showing their new benefit amount. Recipients will see an increase in their January 2025 payment. Those receiving SSI will see the increase on December 31, 2024. Owners and managers of properties required to determine residents' incomes should use the new COLA SS rate when projecting applicants' and residents' incomes. This also affects individuals receiving SSI, VA pensions, Civil Service pensions, and Railroad retirement.

New York City Reaches Landmark Settlement Agreement on Fair Housing Practices

In a significant development for fair housing in New York City, Parkchester, a major residential complex in the Bronx, has entered into a comprehensive settlement agreement to address allegations of discriminatory rental practices. The deal, reached with the New York City Commission on Human Rights, outlines extensive reforms to Parkchester's rental policies and procedures, mainly focusing on the treatment of applicants with rental assistance. Key Provisions of the Settlement: Non-Discrimination in Rental Assistance: Parkchester has agreed to consider all rental assistance types when evaluating sponsor units' applications. This includes Section 8 vouchers, Housing Choice Vouchers, HASA, CityFHEPS, and Olmstead programs. The complex is prohibited from giving preference to one type of rental assistance over another. Elimination of Minimum Income Requirements: Parkchester will no longer impose minimum income requirements for applicants using rental assistance. This change aims to increase housing accessibility for low-income individuals and families. Credit Score and Housing History: The agreement prohibits Parkchester from requiring minimum credit scores or verifiable housing history for applicants with rental assistance. Credit history will not be considered in the application process for those whose rent is fully covered by assistance. Fair Chance Housing: Parkchester has committed to complying with the New York City Fair Chance Housing Act, which will take effect on January 1, 2025. This includes performing individualized assessments of applicants' criminal histories. Application Process Reforms: The settlement mandates changes to Parkchester's application and screening materials to ensure compliance with federal, state, and local laws. It also requires Parkchester to provide reasonable accommodations for applicants who need assistance with the digital application process. Set-Aside Units: In a significant move, Parkchester has agreed to a quota system where two out of every three available sponsor units will be rented to applicants with rental assistance until 850 such applicants have moved in. This includes the 257 that have moved in since August 1, 2022. Advertising and Outreach: The agreement requires Parkchester to include specific language in its advertisements and website, welcoming applicants with rental assistance and explaining the non-discrimination policies. Training and Monitoring: Parkchester staff will undergo comprehensive fair housing training. The agreement also establishes a monitoring system, requiring Parkchester to maintain detailed records and provide regular reports to the Commission on Human Rights for five years. This settlement represents a significant step forward in ensuring equal access to housing in one of New York City's largest residential complexes. The agreement aims to create more inclusive and diverse communities within Parkchester by addressing systemic barriers that have historically disadvantaged applicants with rental assistance. The reforms outlined in this agreement could serve as a model for other large residential properties in New York City and beyond, potentially influencing fair housing practices on a broader scale.

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