Greater Boston Legal Services, the National Consumer Law Center, and law firm Cohen Milstein filed a federal lawsuit on May 25 against SafeRent Solutions, LLC alleging that the national tenant screening provider has been violating the Fair Housing Act and related state laws for years. SafeRent, formerly known as CoreLogic Rental Property Solutions, provides tenant screening services that disproportionately give low scores to Black and Hispanic rental applicants who use federally funded housing vouchers to pay the vast majority of their rent, causing them to be denied housing. The lawsuit alleges that SafeRent’s algorithm has a disparate impact based on race and source of income, in violation of federal and state laws.
“As stated in the complaint, while SafeRent considers applicants’ credit history, including credit-related information, including non-tenancy debts, and eviction history in calculating SafeRent Scores,” said Todd Kaplan, senior attorney at GBLS, “SafeRent’s algorithm does not consider the financial benefits of housing vouchers in assigning SafeRent Scores. On average over 73% of the monthly rental payment is paid through these vouchers.”
“Racial disparities in credit history and credit scores not only reflect historical racial disparities in wealth, but also perpetuate wealth inequalities through reduced financial opportunities and fewer financial safety nets, which hinder a consumer’s ability to accumulate present or intergenerational wealth through homeownership or other financial investments,” said Ariel Nelson, staff attorney at NCLC.