Article | Avoiding Fair Housing Violations While Using Artificial Intelligence

On May 2, HUD provided two releases that provide guidance about the Fair Housing Act and areas in which the use of artificial intelligence (AI) presents concerns: the tenant screening process and its application to the advertising of housing opportunities through online platforms that use targeted ads. This announcement follows a recent Executive Order, which called on HUD to provide guidance assisting owners/agents to combat discrimination enabled by automated or algorithm-based tools that are used to make decisions about access to housing.

“Under this Administration, HUD is committed to fully enforcing the Fair Housing Act and rooting out all forms of discrimination in housing,” said HUD Acting Secretary Adrianne Todman. “Today, we have released new guidance to ensure that our partners in the private sector who utilize artificial intelligence and algorithms are aware of how the Fair Housing Act applies to these practices.”

“The Fair Housing Act prohibits discrimination on the basis of race, color, national origin, religion, sex (including gender and sexual orientation), disability, and familial status,” said Demetria McCain, Principal Deputy Assistant Secretary of HUD's Office of Fair Housing and Equal Opportunity. “Housing providers, tenant screening companies, advertisers, and online platforms should be aware that the Fair Housing Act applies to tenant screening and the advertising of housing, including when artificial intelligence and algorithms are used to perform these functions.”

Tenant Screening

The Fair Housing Act prohibits intentional housing discrimination and housing practices that have an unjustified discriminatory effect. Both owners/agents and screening companies have a role in ensuring that resident screenings are accurate, transparent, and fair. The screening guidance explains that the use of third-party screening companies, including those that use artificial intelligence and other emerging technologies, must comply with the Fair Housing Act and ensure that all housing applicants are given an equal opportunity to be evaluated on their own merit.

The tenant screening guidance lists fair housing issues created by tenant screening practices. These include the increasing use of third-party screening companies aiding tenant screening decisions and the emerging use of machine learning and artificial intelligence. Suggested best practices are provided for transparent, fair, and non-discriminatory tenant screening policies for owners/agents and companies offering tenant screening services.

Read the guidance on tenant screening HERE.

Advertising of Housing Opportunities

Advertisers and online platforms present risks of deploying targeting advertisement tools for ads covered by the Fair Housing Act that advertising platform providers need to be aware of. Violations of the Act may occur when certain ad targeting and delivery functions unlawfully deny consumers information about housing opportunities based on the consumers’ protected characteristics. Violations of the Act also happen when ad targeting and delivery functions are used, based on protected characteristics, to target vulnerable consumers for predatory products or services, charge different amounts for delivered advertisements, or display content that could discourage or deter potential consumers.

Read the guidance on the use of online platforms HERE.

According to HUD, the release of these guidance documents follows HUD’s pledge in an April 4 joint statement with other federal agencies to enforce civil rights laws as new technologies like artificial intelligence become more common. 

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