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Pa Fair Housing Human Relations ActFederal_fha_paHARD

A property management company in Pennsylvania uses an algorithm to screen rental applicants. The algorithm considers zip codes as a factor, which results in applicants from predominantly minority neighborhoods being rejected at a higher rate. Under the PA Human Relations Act, this screening practice:

Correct Answer

D) May violate fair housing law under the disparate impact theory, even though the algorithm does not explicitly use race as a factor

Under both the PA Human Relations Act and the federal Fair Housing Act, practices that appear neutral but have a disproportionate adverse impact on a protected class may violate fair housing law under the disparate impact theory. Using zip codes that correlate with racial demographics can constitute such a violation.

Answer Options
A
Is lawful because technology-based screening is exempt from fair housing analysis
B
Is lawful because the algorithm does not explicitly consider race
C
Violates fair housing law only if the company intended to discriminate
D
May violate fair housing law under the disparate impact theory, even though the algorithm does not explicitly use race as a factor

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Related Topics & Key Terms

Key Terms:

disparate_impactalgorithmic_screeningzip_code_discriminationtechnology

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