In response to a recent court ruling, HUD is issuing this proposed rule to clarify the framework for assessing discriminatory effects claims under the Fair Housing Act. On October 25, 2020, the U.S. District Court for the District of Massachusetts, in Massachusetts Fair Housing Center v. HUD, issued a nationwide preliminary injunction that delayed the effective date of HUD’s Implementation of the Fair Housing Act’s Disparate Impact Standard final rule published on September 24, 2020 and enjoined HUD from implementing or enforcing the rule. The Court also required HUD to preserve the status quo pursuant to the regulations in effect prior to the injunction. As a result of the preliminary injunction, HUD’s 2020 disparate impact rule never went into effect. The Court in granting the preliminary injunction, also determined that the 2020 rule was likely arbitrary and capricious. Consequently, in view of the preliminary injunction and upon further consideration, HUD is proposing to reinstate the 2013 discriminatory effects rule.