SafeRent, an AI screening tool used by landlords, will no longer use AI-powered “scores” to evaluate whether someone using housing vouchers would make a good tenant.
Settlement Stems from 2022 Class Action Lawsuit
The settlement stems from a 2022 class action lawsuit filed in Massachusetts. The suit alleged that SafeRent’s scoring system disproportionately harmed people using housing vouchers — specifically Black and Hispanic applicants. In addition to violating Massachusetts law, the complaint also accused SafeRent of breaking the Fair Housing Act, which prohibits housing discrimination.
The Scoring System
As outlined in the initial lawsuit, SafeRent’s scoring algorithm uses factors like credit history and non-rental-related debts to assign a SafeRent Score to potential tenants. Landlords can then use this score to determine whether to accept or deny someone’s rental application. The lawsuit claimed the process isn’t transparent, as SafeRent doesn’t tell landlords how it came up with a person’s score. And the system allegedly assigned lower scores unfairly for Black and Hispanic tenants, as well as people who use housing vouchers, leading landlords to deny their housing applications.
Settlement Terms
Under the five-year settlement, SafeRent will no longer display a tenant screening score for applicants using housing vouchers nationwide, nor can it include a score when landlords use its “affordable” SafeRent Score model. SafeRent’s service also can’t display recommendations on whether to “accept” or “deny” someone’s application if they use housing vouchers. This means landlords will now have to evaluate renters who use housing vouchers based on their entire record — rather than just using their SafeRent score.
Conclusion
The settlement is a step towards reducing housing discrimination and ensuring that all individuals, regardless of income or race, have access to affordable housing options.
FAQs
Q: What does the settlement mean for individuals using housing vouchers?
A: The settlement means that landlords will no longer use SafeRent’s scoring system to evaluate individuals using housing vouchers. Instead, landlords will have to evaluate renters based on their entire record, without relying on the scoring system.
Q: Will SafeRent continue to operate its scoring system?
A: Yes, SafeRent will continue to operate its scoring system, but it will no longer be used for individuals using housing vouchers.
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