HUD Releases Guidance on AI Use in Fair Housing Act

HUD Takes Action to Combat Discrimination in Housing AI Use

The U.S. Department of Housing and Urban Development (HUD) has announced new guidelines aimed at applying the provisions of the Fair Housing Act to the use of generative artificial intelligence (AI) in the housing sector. The move comes in response to concerns about potential discrimination enabled by AI tools in housing services.

HUD released separate guidance addressing two key areas where AI use could impact fair housing practices: tenant screening and online advertising of housing opportunities. The agency emphasized that the Fair Housing Act prohibits discrimination based on various protected characteristics, including race, color, national origin, religion, sex, disability, and familial status.

The Federal Housing Finance Agency (FHFA) has also appointed an AI “czar” to oversee policy related to the technology. The rise of generative AI has raised concerns in the housing and mortgage industries, with some fearing that these tools may not prioritize equal protection in housing decisions.

HUD’s guidance includes best practices for fair and non-discriminatory tenant screening policies, emphasizing the need for compliance with the Fair Housing Act. The agency also highlighted the importance of caution in advertising, particularly in targeting vulnerable consumers or protected classes.

At a recent industry event, real estate professionals discussed their use of AI technology, focusing on consumer outreach and compliance streamlining. The new HUD guidelines aim to ensure that AI tools in housing services adhere to fair housing principles and do not perpetuate discrimination.