Assembly codifies federal disparate-impact housing standard into state law

The New York State Assembly on June 5 passed A.4040A, a measure to amend the Executive Law (the state human rights law) to incorporate the federal disparate-impact standard for fair housing claims. The bill passed 93-45.

Supporters said the measure simply aligns state law with long-standing federal regulation so New Yorkers retain the ability to challenge policies that have discriminatory effects even when discriminatory intent is not shown. "This legislation is straightforward. It incorporates the federal disparate impact standard into the state human rights law for fair housing cases," sponsor Assemblymember Lascher said on the floor.

Backers framed the bill as preserving the status quo of roughly 50 years of federal disparate-impact jurisprudence. Lascher told colleagues the measure uses language taken almost verbatim from the federal regulation and "would merely preserve the legal status quo of the last half century to ensure that New Yorkers continue to have protection and recourse to ensure fair and equal access to housing in our great state." He and supporters cited examples such as lending practices in Buffalo to illustrate how policies can produce racially disparate results.

Opponents warned the bill was a pre-emptive response to federal executive actions and predicted legal disputes over administrative authority could persist. During debate members referenced the April 2025 executive order discussed at the federal level and the recent Supreme Court decision in Loper Bright, which changed aspects of deference to agency regulations. Sponsor Lascher acknowledged those developments but said codifying the standard in state law would maintain protections regardless of future federal changes.

The Assembly vote was recorded as Ayes 93, Nays 45. The bill was reported from the floor and passed the Assembly.