In The School of the Ozarks, Inc. v. Biden, (8th Cir., July 27, 2022), the U.S. 8th Circuit Court of Appeals held in a 2-1 decision that a Christian college lacks standing to challenge a memorandum issued by an acting assistant secretary of the U.S. Department of Housing and Urban Development. The memorandum directs the HUD office that enforces the Fair Housing Act to investigate all discrimination complaints, including discrimination on the basis of sexual orientation or gender identity. The school's religiously-inspired Code of Conduct specifies that biological sex determines a person's gender. The school maintains single-sex residence halls and does not permit transgender individuals to live in residence halls that do not match their biological sex. The majority said in part:
The Memorandum does not, as the College presupposes, require that HUD reach the specific enforcement decision that the College’s current housing policies violate federal law. The Memorandum, for example, says nothing of how the Religious Freedom Restoration Act or the Free Exercise Clause may limit enforcement of the Fair Housing Act’s prohibition on sex discrimination as applied to the College....
The College’s alleged injury also lacks imminence because it is speculative that HUD will file a charge of discrimination against the College in the first place.... [T]he agency has never filed such a charge against a college for sex discrimination based on a housing policy that is specifically exempted from the prohibition on sex discrimination in education under Title IX....
Judge Grasz dissented, arguing in part that the school has already suffered an injury-- the right to notice and comment on proposed rules. He said: "In my view, HUD’s Memorandum is an interpretative rule."
