The Washington Report
April 28, 2025
In This Issue:
Business Issues Update
Disparate Impact
Housing Issues Update
Business Issues Update
NAR Joins State and Local Associations to Defend Associational Standing Before the Georgia Supreme Court
The National Association of REALTORS® (NAR), in partnership with the Georgia Association of REALTORS®, Savannah Area REALTORS®, and 11 other Georgia and national trade associations filed an amicus brief in the Bryan County et al. v. Home Builders of Savannah, Inc. case before the Supreme Court of Georgia. The brief was filed in support of the Home Builders of Savannah to defend the legal doctrine of associational standing—a rule that allows associations to file lawsuits on behalf of its membership to challenge rules or regulations that impact membership without requiring an individual member to initiate a lawsuit.
The underlying case involves a dispute between the Home Builders of Savannah (on behalf of its members) and Bryan County, Georgia over the constitutionality of zoning ordinances and impact fees instituted by the county. The case is now before the Supreme Court of Georgia. In February, the court sua sponte (on its own) issued an order asking the parties to address the issue of associational standing following the January 2025 Georgia Supreme Court decision in Wasserman v. Franklin County, which eliminated third-party standing in Georgia courts. While the Wasserman decision did not address associational standing, the Georgia Supreme Court opinion included a footnote acknowledging that associational standing is “closely related” to third-party standing and questioning whether associational standing was proper under Georgia law.
Should the Court rule that associational standing no longer has a place in Georgia jurisprudence, decades of legal precedent allowing for trade associations to challenge rules or regulations on behalf of its membership will be upended. Further, there is fear that such a ruling could influence other jurisdictions to follow suit and dispose of associational standing as well. Therefore, NAR is happy to be part of the coalition of Georgia and national trade associations seeking to protect associational standing and the ability to defend its membership.
NAR will continue to monitor the status of this case and provide updates accordingly.
Disparate Impact
Executive Order Targets Disparate Impact Liability
On April 23, 2025, the president issued an executive order entitled "Restoring Equality of Opportunity and Meritocracy." It declares the policy of the United States "to eliminate the use of disparate impact liability in all contexts to the maximum degree possible to avoid violating the Constitution, Federal civil rights laws, and basic American ideals."
The order directs federal agencies to de-prioritize enforcement of all statutes and regulations to the extent they include disparate impact liability. The order explicitly refers to laws and regulations protecting civil rights in employment, but it does not limit itself to the employment context.
The order also directs the attorney general to determine whether federal authorities preempt state laws, regulations, policies, or practices that impose disparate impact liability based on a federally protected characteristic and to "take appropriate measures consistent with the policy of this order."
The U.S. Supreme Court recognized disparate impact as a theory of liability under the Fair Housing Act in its 2015 decision, Texas Dept. of Housing and Community Affairs v. Inclusive Communities Project, Inc.
Housing Issues Update
NAR Presents Key Recommendations to Modernize Federal Housing Programs
NAR sent a letter to the leadership of the House Financial Services Subcommittee on Housing and Insurance in response to a bipartisan call for ideas from representatives Mike Flood and Emanuel Cleaver, providing recommendations for modernizing the HOME Investment Partnerships Program and Community Development Block Grant (CDBG) Program.
The letter outlines specific reforms that would streamline program administration and enhance the ability of these critical HUD programs to address the nationwide housing shortage of 4.7 million homes. Key recommendations include allowing CDBG funds to be used for new housing construction, creating incentives for the adoption of local pro-housing policies, and updating HOME Program requirements to better serve homebuyers across all markets.
This advocacy supports NAR's ongoing work to increase housing supply, expand homeownership opportunities, and empower local governments with greater flexibility to address their communities' unique housing challenges.