Justices to hear New Jersey fair housing case

By Lawrence Hurley
WASHINGTON | Mon Jun 17, 2013 10:34am EDT

(Reuters) - The Supreme Court on Monday agreed to consider whether a New Jersey township's plan to redevelop lower income housing violated the Fair Housing Act because it would reduce affordability for minorities.

In weighing the lawsuit filed by Mount Holly Gardens Citizens in Action against the township of Mount Holly, the court will decide whether the statute allows for claims based on seemingly neutral practices that have a discriminatory effect.

The Fair Housing Act, passed in 1968 to prohibit bias based on race in the sale or rental of housing and related services, does not explicitly allow so-called "disparate impact" claims. Courts are divided on whether such claims can be made. The Supreme Court has never ruled on the issue.

The dispute arose in 2002 when the township decided to redevelop an area known as Mount Holly Gardens due to a high crime rate, poor maintenance and other problems. The 30-acre neighborhood was 75 percent minority in 2000. The town in 2000 was 67 percent non-Hispanic white.

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