A Maryland property management company implements a policy of requiring all prospective tenants to earn at least three times the monthly rent in verifiable employment income. A prospective tenant who relies entirely on Social Security disability income and a housing voucher is denied tenancy under this policy. The tenant files a complaint with the Maryland Commission on Civil Rights citing both disability and source of income discrimination. The property management company argues the policy is a neutral, business-justified income verification standard. Which of the following best evaluates the enforceability of this policy under the Maryland Fair Housing Act?
Correct Answer
C) The policy may constitute disparate impact discrimination against disability and source of income protected classes, requiring the company to demonstrate business necessity and explore less discriminatory alternatives.
Under the Maryland Fair Housing Act, Md. Code Ann., State Gov't §§ 20-701 et seq., both disability and source of income are protected classes. A facially neutral policy — such as requiring three times the monthly rent in employment income — can constitute disparate impact discrimination if it disproportionately excludes members of a protected class and cannot be justified by business necessity. The policy's requirement for 'verifiable employment income' specifically excludes disability-based income sources and housing vouchers, which disproportionately affects persons with disabilities and voucher holders (a source of income protected class). The company must demonstrate that the policy is necessary for a legitimate business reason and that no less discriminatory alternative exists. This is a disparate impact analysis under Maryland fair housing law.
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Related Concepts
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