HB 451 — AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO FAIR HOUSING AND DISPARATE IMPACT LIABILITY.

Johnson HOUSE& OFSen. REPRESENTATIVES 153rd GENERAL ASSEMBLY HOUSE AMENDMENT NO.

1Lockman TOReps. HOUSE BILL NO.

451Lambert, AMENDSnyder-Hall; House Bill No.

451Sen. on lines 18 and 19 by deleting “This section clarifies that liability under this chapter may be established based on a practice’s discriminatory effect, regardless of discriminatory intent.” as it appears therein and inserting in lieu thereof the following:

“ThisPinkney sectionHOUSE clarifiesOF andREPRESENTATIVES codifies153rd theGENERAL disparateASSEMBLY impactHOUSE frameworkBILL recognizedNO. under the federal Fair Housing Act, 42 U.S.C.

§§451 3601AN etACT seq.,TO andAMEND liabilityTITLE under6 thisOF chapterTHE mayDELAWARE beCODE establishedRELATING basedTO onFAIR aHOUSING practice'sAND discriminatoryDISPARATE effect.”.IMPACT LIABILITY.

FURTHERBE AMENDIT HouseENACTED BillBY No.THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

451Section on1. line 25 by deleting “(1)” as it appears therein.

FURTHERAmend AMEND§ House4602, BillTitle No.6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly:

451§ by4602. deleting lines 28 through 30 in their entirety.

FURTHERDefinitions. AMEND House Bill No.

451For bypurposes deletingof linesthis 41chapter: through 44 in their entirety and inserting in lieu thereof the following:

“(1)(11) This“Discriminatory sectioneffect” appliesmeans toa allpractice discriminatorythat housingactually practicesor aspredictably definedresults underin a disparate impact on a protected class identified in § 46024603 of this title.”.title, or creates, increases, reinforces, or perpetuates segregated housing patterns, based on membership in a protected class.

SYNOPSISA Housepractice Amendmentpredictably No.results in a disparate impact when there is evidence that the practice will result in a disparate impact even though the practice has not yet been implemented.

1(11) to(12) House“Discriminatory Billhousing No.practice” means an act that is unlawful under § 4603, § 4604, § 4605, §  4606 or § 4618 § 4606, § 4618, or § 4621 of this title.

451(13) removes“Disparate theimpact” land-usemeans provisions,a algorithm-relatedfacially language,neutral policy, practice, rule, decision, or method of administration that disproportionately and enumeratedadversely coveredaffects practices.members of a protected class.

(21) “Less discriminatory alternative” means an alternative practice that would serve the same substantial, legitimate, nondiscriminatory interest with a less discriminatory effect.

Section 2.

Amend Chapter 46, Title 6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 4621.

Disparate effect;

disparate impact.

(a) Purpose and construction.

This section clarifies that liability under this chapter may be established based on a practice’s discriminatory effect, regardless of discriminatory intent.

The practice may still be lawful if supported by a legally sufficient justification, as defined in paragraph (c)(2) of this section.

The burdens of proof for establishing a violation under this section are set forth in subsection (c) of this section.

SCDDS Page 1 of 14 Released:

06/18/202606/03/2026 12:1204:55 PM 0161530142(b) Unlawful practice.

It is an unlawful discriminatory housing practice under this chapter to use or enforce a policy or practice that has a discriminatory effect on a protected class, even if the policy or practice is neutral on its face and without discriminatory intent, unless justified under subsection (d) of this section.

(1) A practice that creates, increases, reinforces, or perpetuates segregated housing patterns may constitute evidence of a discriminatory effect under this section where such patterns limit housing choice or access for protected classes.

(2) Practices that rely upon or incorporate algorithms, automated decision-making systems, risk assessments or data-driven models are subject to this section where such tools produce or perpetuate a discriminatory effect, regardless of whether the inputs or methodology are facially neutral.

(c) The burdens of proof in discriminatory effect cases are as follows:

(1) Prima facie showing.

The complainant or plaintiff bears the burden of proving that a practice caused or predictably will cause a discriminatory effect.

(2) Justification.

If a prima facie showing is made, the respondent or defendant bears the burden of proving that the challenged practice is necessary to achieve one or more substantial, legitimate, nondiscriminatory interests of the respondent or defendant.

(3) Less discriminatory alternative.

If the respondent or defendant satisfies paragraph (c)(2) of this section, the complainant or plaintiff may prevail by proving that the substantial, legitimate, nondiscriminatory interests could be served by a less discriminatory alternative.

(d) Scope of Application.

(1) This section applies to all practices covered under this chapter, including but not limited to, sales or rental practices;