For multi-family owners whose portfolios include properties with LIHTC, PBV or Section 8 units, or those with federally backed mortgages, there is a significant regulatory update from the Department of Justice (DOJ) regarding Title VI of the Civil Rights Act of 1964. On December 10, 2025, the DOJ published this Final Rule that amends its Title VI regulations, with important implications for a large segment of the multi-family apartment industry.
Key Takeaways:
- Elimination of Disparate-Impact Liability: The DOJ has rescinded regulatory provisions that previously prohibited conduct resulting in unintentional disparate impacts based on race, color, or national origin. Title VI regulations now prohibit only intentional discrimination. This is significant because disparate impact liability served as the basis for recent federal policies restricting the use of criminal background checks, credit scores and eviction records (among other things) for screening purposes.
- Regulatory Sections Removed or Revised: Full removal of 28 CFR 42.104(b)(2), (b)(6), and (c)(2), which addressed disparate-impact and affirmative action provisions. Revision of 28 CFR 42.104(b)(3) to remove references to ‘effect,’ narrowing the scope to intentional discrimination only.
- Alignment with Statutory and Constitutional Standards: The amendments bring DOJ regulations in line with the original public meaning of Title VI and Supreme Court precedent, which hold that Title VI prohibits only intentional discrimination.
- Implementation of Executive Order 14281: These changes implement Executive Order 14281, which directs federal agencies to eliminate disparate-impact liability to avoid constitutional concerns and promote equality of opportunity.