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In 2016, HUD issued a new rule that, among other things, set forth in 24 CFR 100.7 several direct and vicarious liability principles for who may be liable under the Fair Housing Act, which were not previously contained in HUD’s regulations.  Subsequent developments in case law, primarily the U.S. Court of Appeals for the Second Circuit’s December 2019 opinion in Francis v. King’s Park Manor, have caused HUD to reconsider its 2016 rulemaking on one of those principles of liability, 24 CFR 100.7(a)(iii), which allows for liability on the part of a housing provider for the actions of a third party (third party liability).  HUD’s considered view is now that existing law does not support the interpretive position that the Fair Housing Act creates negligence-based liability for a property owner or manager for discriminatory conduct by a third party who is not a common law agent of such property owner or manager.  This proposed rulemaking would strike 24 CFR 100.7(a)(iii) from the regulation while leaving the remainder of the 2016 rulemaking intact. This would better allow courts to develop the Fair Housing Act in the area of third party liability.