Can a city, or potentially other governmental entities, sue lenders over their discriminatory lending practices under the Fair Housing Act? On May 1, 2017, the U.S. Supreme Court said “yes,” but with the following conditions:
- The city must be an “aggrieved person” within the meaning of the Fair Housing Act;
- The alleged harm must be within the range of injuries against which the Fair Housing Act protects; and
- The discriminatory lending practices must be the proximate (i.e., direct) cause of the injury to the city.
The City of Miami alleged that,
“. . . the Banks