The Supreme Court expanded the reach of federal housing law Monday, ruling that cities — including Los Angeles — can sue major banks for discriminatory lending practices that hurt low-income neighborhoods during the Great Recession. The decision gives city leaders a potentially powerful weapon against lenders, including those who were accused of predatory practices that triggered the foreclosure crisis after 2008. The Fair Housing Act forbids racial discrimination against “any person.” Lawyers for the banks said the law protected only people who suffered discrimination, not cities. But by a 5-3 vote, the justices said cities can be an “aggrieved person” who can sue over the impact of housing discrimination on the city’s finances. The city attorneys for Los Angeles and San Francisco had told the court they had lodged similar suits against the banks.

Source: Los Angeles Times May 01, 2017 16:18 UTC