DocumentedAlgorithmic Discrimination (Housing)May 2022United States

SafeRent AI Tenant-Screening Discrimination Settlement

A class action (Louis v. SafeRent Solutions) alleged SafeRent's algorithmic tenant-screening score disproportionately assigned lower scores to Black and Hispanic applicants and to housing-voucher holders, by over-weighting credit history and ignoring the guaranteed-payment value of vouchers. Lead plaintiff Mary Louis was denied despite a 17-year positive rental history and a voucher.

Settlement: US$2.3MAI system:SafeRent Score (algorithmic tenant screening)

Impact

One of the first US settlements holding an AI screening vendor accountable under the Fair Housing Act. The US Department of Justice filed a statement of interest supporting vendor liability.

Outcome

A federal judge approved a roughly 2.275 million USD settlement. SafeRent agreed to stop using its score to evaluate voucher applicants and to have any future score independently validated.

Sources

  1. Source 1Cohen Milsteinwww.cohenmilstein.com/class-action-lawsuit-on-ai-related-discrimination-reaches-final-settlement/
  2. Source 2eWeekwww.eweek.com/news/ai-landlord-tool-settles-discrimination-lawsuit/
  3. Source 3AI Incident Database (entry 844)incidentdatabase.ai/cite/844/

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