Supreme Court Hears Texas Case That Tests Extent of Civil Rights Doctrine

A sharply divided US Supreme Court on Wednesday took up a challenge to the Fair Housing Act (FHA) in an action that liberal critics say could gut the major civil rights provision.

At issue in a case from Dallas, Texas, is whether the housing law authorizes lawsuits over racially neutral measures that nonetheless disproportionately impact minority residents.

Liberals support the so-called disparate impact theory of civil rights enforcement, while conservatives warn that such an approach could lead to racial quotas in housing and other areas.

The case has attracted significant attention, with friend-of-the-court briefs filed by various civil rights groups, 17 states, and 20 cities and counties. On the other side, briefs have been filed by a number of conservative groups and business associations, including insurance companies, banks, finance companies, and home builders.

The FHA prohibits anyone from refusing to sell, rent, or otherwise make unavailable a house or apartment to a person because of their race, religion, or national origin. There is no dispute about this aspect of the law.

After the FHA was enacted in 1968, federal courts and agencies began embracing a broader interpretation of the law’s scope, concluding that, in addition to barring intentional discrimination, the statute also authorizes lawsuits when housing decisions disproportionately harm minority groups.

The case before the high court involves a lawsuit challenging decisions by the Texas Department of Housing and Community Affairs in awarding tax credits for low-income housing in Dallas. The Housing Department sought to provide new affordable housing in areas where existing housing was blighted or nonexistent. It sought to do so under race-neutral criteria.

Despite that goal, not everyone was satisfied with the agency’s performance. A Dallas-based group seeking to foster racial integration, the Inclusive Communities Project, sued the Housing Department because it said the agency had failed to provide adequate opportunities for low-income housing in Dallas’ more affluent suburbs.

The suit cited a statistical analysis that showed the agency approved disproportionately more applications for housing in minority neighborhoods than in more affluent white suburbs.

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A decision is expected by late June.