Supreme Court Ruling Permits City Lawsuits Against Banks Under FHA to Proceed

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Supreme Court Ruling Permits City Lawsuits Against Banks Under FHA to Proceed

The U.S. Supreme Court ruled in Bank of America Corp. v. City of Miami, Case No. 15-1111 that cities may qualify as “aggrieved persons” under the Fair Housing Act (“FHA”), thus placing them within the “zone of interests” covered by that federal statute.  As such, they are permitted to sue banks for the secondary effects of predatory lending practices or discrimination.  Miami argued that, because the lending practices of banks — including the petitioner, Bank of America — were skewed to place unfair or racially discriminatory burdens on minorities, and because those loans were far more likely to default, minority neighborhoods have suffered an overwhelming number of foreclosures and vacancies.  That outcome “impaired the City’s effort to assure racial integration, diminished the City’s property-tax revenue, and increased demand for police, fire, and other municipal services.”


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Miami, FL 
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Miami, FL 
Thursday, May 4, 2017
Finance & Banking