What you should do is to keep the ratio of people classified as dangerous same among different groups. But this comes at a price as reduced classification accuracy.
Of course you don't include location. Why would anyone be ok with "you got longer sentence because you live in poor neighberhood"?
>>What you should do is to keep the ratio of people classified as dangerous same among different groups.
Sounds like a terrible idea. What if there is a community which just doesn't contain many dangerous people at all? If someone from this community commits a crime once in a blue moon they will be unfairly punished.
Now imagine if people were unfairly punished based on something they were born with and not where they lived.
No, the algorithm just gives negative weight to locations where dangerous groups tend to live. You infer race from that measure.