A South Carolina real estate licensee applies a facially neutral policy requiring all rental applicants to have a credit score of at least 700. Statistical analysis shows that this policy disproportionately excludes applicants of a particular race. No intentional discrimination is alleged. Under South Carolina's fair housing law, which legal theory would a complainant most likely use to challenge this policy?
Correct Answer
B) Disparate impact, because the policy is facially neutral but has a disproportionate adverse effect on a protected class
Disparate impact theory applies when a facially neutral policy — one that does not explicitly discriminate — has a disproportionate adverse effect on members of a protected class and cannot be justified by a legitimate business necessity. The U.S. Supreme Court confirmed in Texas Department of Housing and Community Affairs v. Inclusive Communities Project (2015) that disparate impact claims are cognizable under the Fair Housing Act. South Carolina's fair housing law (S.C. Code Ann. §§ 31-21-10 et seq.) mirrors the federal framework, and a credit score threshold that disproportionately excludes applicants of a particular race would be subject to a disparate impact challenge.
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