A federal court has approved a $2.3 million settlement that resolves charges that SafeRent, an artificial intelligence (AI) screening tool used by landlords, used its algorithm scores to determine if a rental housing applicant using vouchers should be approved as a tenant.
Under the terms of the five-year settlement, SafeRent will cease displaying tenant screening scores for applicants who rely on housing vouchers – even if landlords use the “affordable” SafeRent Score model. Furthermore, the SafeRent’s service can no longer offer accept or deny recommendations on applicants using housing vouchers.
The settlement resolves a 2022 class action lawsuit in Massachusetts that claimed the people using housing vouchers were negatively impacted by SafeRent’s scoring system disproportionately harmed, with a disproportionately high number of Black and Hispanic applicants being impacted.
The SafeRent settlement is the latest legal development involving algorithm-driven property management software. In August, RealPage was sued by the U.S. Department of Justice over allegations that software contributed to rent hikes.
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