Disparate Impact FHA Case Filed Asserting Discrimination in Minority Communities

Earlier this week a number of fair housing advocacy groups filed a lawsuit in U.S. District Court in Maryland asserting that a major financial institution and a property management company are violating the Fair Housing Act (FHA) by exposing predominately minority communities to economic harm, increased crime, and a less than optimal quality of life by failing to market and maintain its foreclosed properties in the same condition as the financial institution does in communities with a majority of Caucasian residents. Based on a claimed multi-year investigation involving over 1,600 foreclosed homes in more than 30 metropolitan areas, the complaint alleges that bank-owned homes in communities of color are more likely to have overgrown grass, unsecured doors as well as various health and safety problems when compared to better maintained homes located in predominantly white communities. The plaintiffs assert they want to hold the defendants responsible for “unjust policies…

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