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Disparate Impact
Exclusionary and nonexclusionary describe the various disparate treatments that housing providers or agents can place upon renters and buyers. In addition to these types of housing discrimination, certain policies that do not discriminate on its face have also been found to cause housing discrimination in the United States. Disparate impact is a facially neutral housing policy that negatively impacts minorities or other protected groups of people. Disparate impact was not always looked at in the housing context. It was first applied in housing discrimination in 2015 when the Court found Congress had intended to include liability for disparate impact discrimination in the Fair Housing Act and its recognition is consistent with the central purpose of the Act since it was amended in 1988. After that case, HUD began recognizing many types of disparate impact treatment. For example, HUD published a statement concluding that blanket prohibitions against tenants with criminal convictions would constitute disparate impact housing discrimination because incarceration rates in the United States are disproportionate between minorities and non-minorities. Disparate impact remains controversial as some feel that their freedom in implementing policies and rules is now limited due to the fear of unintended consequences of rules that originally had no discriminatory intent.