The


U.S.
Department
of
Housing
and
Urban
Development
(HUD)
on
Thursday
announced
new
guidelines
that
aim
to
apply
the
provisions
of
the
Fair
Housing
Act
to
the
use
of
generative

artificial
intelligence
(AI)
in
the
realm
of
housing.

HUD
released
separate
pieces
of
guidance
aimed
at
applying
Fair
Housing
Act
provisions
to
two
key
areas
of
concern
in
which
AI
use
could
impact
the
fair
application
of
housing
services:
the

tenant
screening
process
and
“its
application
to

the
advertising
of
housing
opportunities
through
online
platforms
that
use
targeted
ads,”
HUD
said
in
its
announcement.

“Today’s
announcement
is
in
accordance
with

President
Joe
Biden’s
Executive
Order,
which
called
on
HUD
to
provide
guidance
to
combat
discrimination
enabled
by
automated
or
algorithmic
tools
used
to
make
decisions
about
access
to
housing
and
in
other
real
estate-related
transactions,”
the
announcement
explained.

The

Federal
Housing
Finance
Agency
(FHFA)
also

recently
appointed
an
AI
“czar”
to
oversee
the
agency’s
policy
approach
to
the
technology.

The
meteoric

rise
of
generative
AI
technology
has
created
several
concerns
in
the
housing
and
mortgage
industries.
Due
to
the
way
that
such
tools
gather
and
compile
information,
certain
consumers
and
organizations
have
expressed
concerns
that
AI
tools

may
not
have
sensitivity
to
equal
protection
in
housing
despite
the
growing
use
of
such
tools
in
the
market.

“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,”
Demetria
McCain,
HUD’s
principal
deputy
assistant
secretary
of
fair
housing
and
equal
opportunity,
said
in
a
statement.

“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.”

Regarding
tenant
screening,
many
of
these
functions
are
undertaken
by
third
parties
that
may
elect
to
use
AI
technology
to
aid
with
specific
screening
decisions,
HUD
explained.

“The
[new]
guidance
also
suggests
best
practices
for
fair,
transparent,
and
non-discriminatory
tenant
screening
policies,
for
both
housing
providers
and
companies
that
offer
tenant
screening
services,”
the
announcement
stated.
“The
Fair
Housing
Act
prohibits
both
intentional
housing
discrimination
and
housing
practices
that
have
an
unjustified
discriminatory
effect.”

The
tenant
screening
guidance
makes
clear
that
“use
of
third-party
screening
companies,
including
those
that
use
artificial
intelligence
or
other
advanced
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.”

With
advertising,
HUD
is
aiming
to
make
companies
that
use
AI
aware
of
the
need
for
caution
when
creating
material
that
is
designed
to
reach
people
under
protected
classes
or
other
attributes
covered
by
the
law.

“Violations
of
the
Act
may
also
occur
when
ad
targeting
and
delivery
functions
are
used,
on
the
basis
of
protected
characteristics,
to
target
vulnerable
consumers
for
predatory
products
or
services,
display
content
that
could
discourage
or
deter
potential
consumers,
or
charge
different
amounts
for
delivered
advertisements,”
the
announcement
stated.

At
last
month’s

The
Gathering
by

HousingWire,
a
panel
of
three
real
estate
professionals
discussed

how
they’re
using
artificial
intelligence
technology
in
their
businesses.
The
most
predominant
uses
in
that
discussion
were
focused
on
consumer
outreach
as
well
as
streamlining
the
compliance
process.

Related