HUD guidance on use of AI applications

The Department of Housing and Urban Development has announced its release of two guidance documents addressing the application of the Fair Housing Act to two areas in which the use of artificial intelligence poses particular concerns: the tenant screening process and its application to the advertising of housing opportunities through online platforms that use targeted ads.

The tenant screening guidance describes fair housing issues created by tenant screening practices, including the increasing use of third-party screening companies to aid with tenant screening decisions and the emerging use of machine learning and artificial intelligence. The 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.

Advertisers and online platforms should be alert about the risks of deploying targeting advertisement tools for ads covered by the Fair Housing Act. 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 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.