DOJ CHARGES MOBILE HOME PARK WITH REFUSING TO ALLOW FAMILIES WITH CHILDREN TO LIVE THERE

FROM:  U.S. JUSTICE DEPARTMENT
Monday, May 18, 2015
Justice Department Charges Owner of Indiana Mobile Home Park with Discrimination Against Families with Children

The Justice Department today filed a lawsuit against the corporate owner and agent of the Gentle Manor Estates, a 173-lot mobile home park located in Crown Point, Indiana, for discriminating against families with children in violation of the Fair Housing Act.

The lawsuit, filed in the U.S. District Court for the Northern District of Indiana, alleges that Gentle Manor Estates, LLC and John Townsend, the corporate owner and agent, respectively, of the Gentle Manor Estates, violated the Fair Housing Act by maintaining and enforcing a discriminatory policy of refusing to allow families with children to live at the mobile home park.  The allegations are based on evidence generated by the department’s Fair Housing Testing Program, in which individuals pose as renters to gather information about possible discriminatory practices.

“For over 25 years, the Fair Housing Act has prohibited housing providers from discriminating against families with children,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division.  “The Justice Department will continue its vigorous enforcement of the Fair Housing Act to ensure that families with children have equal access to housing opportunities.”

The lawsuit seeks an order prohibiting the defendants from engaging in future unlawful discrimination.  It also seeks the payment of a civil penalty and monetary damages for the individuals who were refused the opportunity to rent at Gentle Manor Estates because of familial status.

The complaint is an allegation of unlawful conduct.  The allegations must still be proven in federal court.

DOD, APARTMENT COMPLEXES SETTLE LAWSUIT WHICH ALLEGED DISCRIMINATION AGAINST FAMILIES WITH CHILDREN

FROM:  U.S. JUSTICE DEPARTMENT
Tuesday, March 24, 2015
Justice Department Settles Lawsuit Alleging Discrimination Against Families with Children at Apartment Complexes in Kansas and Missouri

The Justice Department announced today that Brisben Chimney Hills Limited Partnership and JRK Residential America LLC, the owners and the former manager of the Reserve apartment complex in Lenexa, Kansas, together with their named partner and agents, have agreed to pay $170,000 to settle a lawsuit alleging violations of the Fair Housing Act (FHA).  The lawsuit alleged that defendants instituted policies at the Reserve and at other properties in Kansas and Missouri that discriminated against families with children.  The lawsuit also alleged that a family was forced to leave the Reserve after they complained to management about the overly-restrictive policies.

Under the proposed consent decree, which must still be approved by the U.S. District Court of Kansas, the defendants will pay $60,000 to the family that initiated the original complaint filed with the U.S. Department of Housing and Urban Development (HUD), $100,000 into a victim fund to compensate other aggrieved families and $10,000 to the United States as a civil penalty.  In addition, the proposed consent decree prohibits the defendants from discriminating in the future against families with children and requires the defendants to receive training on the requirements of the FHA.

“For over twenty-five years, the Fair Housing Act has prohibited housing providers from discriminating against families with children,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “Many parents are already struggling to find affordable housing for their families, and they should not also have to face discrimination because they have children.”

“Kansas families with children deserve the right to live where they choose and to be free from housing discrimination,” said U.S. Attorney Barry R. Grissom of the District of Kansas.

The lawsuit, also filed today, arose from a complaint filed with HUD by a family that was living at the Reserve apartments.  The owners and operators of the Reserve instituted a policy that discriminated against families with children because it unreasonably restricted the activities of children, including a policy that required that anyone under the age of 16 be physically accompanied by an adult at all times.  After the family complained about the policy, their lease was not renewed and they were forced to leave the Reserve.  After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.  The United States’ complaint alleges that the defendants violated the family’s rights, that the restrictive policies discriminated against other families with children and that the defendants engaged in a pattern or practice of discrimination or denied rights protected by the FHA to a group of persons.

“Overly restrictive housing policies for families with children are illegal, and prevent them from fully enjoying the place they call home,” said HUD Assistant Secretary Gustavo Velasquez of Fair Housing and Equal Opportunity.  “HUD will continue to work with the Department of Justice to take action against property owners and landlords whose policies violate the Fair Housing Act.”

Fighting illegal housing discrimination is a top priority of the Justice Department.  The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.

DOJ SUES MOBILE HOME PARK FOR DISCRIMINATION AGAINST FAMILIES WITH CHILDREN

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, October 17, 2014

Justice Department Sues Wisconsin Mobile Home Park for Discriminating Against Families with Children

The Justice Department announced today that it has filed a lawsuit against the owners and operators of the Twin Oaks Mobile Home Park, a 230-lot mobile home park, in Whitewater, Wisconsin, for refusing to allow families with children to live in certain areas of the park, in violation of the Fair Housing Act.

The lawsuit, filed in U.S. District Court in Madison, Wisconsin, alleges that the owner of Twin Oaks, Twin Oaks Mobile Home Park, Inc. and its managers—Merrill Eugene Gutzmer and Dennis Hansen—violated the Fair Housing Act by maintaining and enforcing a policy of not allowing families with children to reside in an area that includes approximately 60 of the 230 lots within the park.  The park does not limit residency to older persons.  The complaint further alleges that, under the policy described above, the defendants refused to approve the application for residency of a single woman who planned to purchase the home of a former resident and live there with her then two-year-old child.  The single woman and the mobile home owner who was trying to sell her mobile home subsequently filed a complaint with the Department of Housing and Urban Development (“HUD”).  After conducting an investigation, HUD found that the defendants had violated the Fair Housing Act, and referred the matter to the Department of Justice.

“For over twenty-five years, the Fair Housing Act has prohibited housing providers from refusing to rent or sell housing to families with children,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.  “Many parents are already struggling to find affordable housing for their families, and they should not also have to face discrimination because they have children.”

“This office is committed to ensuring that all residents in this district, including families with children, are afforded equal opportunity to rent and live where they choose under the Fair Housing Act,” said U.S. Attorney John W. Vaudreuil for the Western District of Wisconsin.  “Discrimination based on familial status will not be tolerated in this district.”          

“HUD and the Department of Justice will continue to enforce the Fair Housing Act to ensure that the housing options of families are not illegally limited because they have children,” said HUD Assistant Secretary Gustavo Velasquez for Fair Housing and Equal Opportunity.

The suit seeks a court order requiring the defendants to bring their policies and practices into compliance with the Fair Housing Act, as well as monetary damages for persons harmed and civil penalties to the United States.

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, and disability.  Among other things, the Fair Housing Act makes it illegal to refuse to rent housing and to discriminate in the terms or conditions of housing rentals because of familial status, except in specified categories of housing that are reserved for older persons.

DOJ SETTLES ALLEGED DISABILITY-BASED HOUSING DISCRIMINATION CASE AGAINST DEVELOPER

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, September 30, 2014

Justice Department Settles Allegations of Disability-Based Housing Discrimination with West Virginia Developer

The Justice Department announced today that developer Douglas Pauley and entities affiliated with him have agreed to pay $110,000 and make approximately $1.7 million in retrofits required to remove accessibility barriers at 30 apartment complexes, involving more than 750 units in West Virginia.  The parties’ agreement will settle the United States’ claims that defendants had violated the Fair Housing Act and the Americans with Disabilities Act by building the complexes with a variety of features that made them inaccessible to persons with disabilities.  The United States District Court for the Southern District of West Virginia approved the settlement yesterday.

Under the terms of the agreement, Pauley, as General Partner of 30 limited liability partnerships, must take extensive actions to make the complexes accessible to persons with disabilities, including wheelchair users.  These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb ramps to allow persons with disabilities to access the sidewalks from the parking areas, replacing cabinets in bathrooms and kitchens to provide sufficient room for wheelchair users, and reducing door threshold heights.  In addition, defendants will pay $100,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations and $10,000 as a civil penalty.

“The Fair Housing Act protects the rights of persons with disabilities to have equal opportunities to enjoy the housing of their choice,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “And this comprehensive resolution will ensure equal access to persons with disabilities at 30 apartment complexes and will compensate those injured by the failure to provide accessible housing.”

“Housing is a fundamental human need, and it’s deeply unfair to deny persons with disabilities equal access to it,” said Booth Goodwin, United States Attorney for the Southern District of West Virginia.  “Thanks to this case, the developer will be required to devote nearly $2 million to correcting and compensating for the harm that he and his companies have caused.  That’s an important victory for West Virginians with disabilities.”

Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement.  Notices of the settlement and a list of subject properties will be published in the Charleston Gazette.  Persons who believe they were subjected to unlawful discrimination at one of those properties either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993 or e-mail the Justice Department at fairhousing@usdoj.govEmail links icon.

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.

LAWSUIT SETTLED IN HOUSING LAWSUIT REGARDING DISCRIMINATION BASED ON PERCEIVED NATIONAL ORIGIN

FROM:  JUSTICE DEPARTMENT
Wednesday, January 8, 2014
Justice Department Obtains $317,000 in Discrimination Settlement with Euless, Texas, Apartment Complex

The United States has settled a housing discrimination lawsuit in Euless, Texas, concerning discrimination against persons of Middle Eastern and South Asian descent, the Justice Department announced today.  Under the agreement, defendants in United States v. Stonebridge at Bear Creek LLP et al will pay a total of $107,000 in civil penalties and $210,000 in a damages fund to compensate victims of the defendants’ discrimination identified during the term of the agreement.

The agreement was filed today in federal court in Dallas and takes the form of a joint proposed order whose terms may be enforced by the court.  The department’s complaint alleged that, for several years, the owners, employees and management company of Stonebridge at Bear Creek Apartments violated the Fair Housing Act by denying housing opportunities to persons of Middle Eastern and South Asian descent.  Among other unlawful actions, Stonebridge’s property manager ordered leasing agents to misrepresent apartment availability based on the accent and perceived race or national origin of potential tenants, and to segregate those approved tenants of Middle Eastern or South Asian descent into two buildings in order to isolate any smells allegedly associated with ethnic cuisine that the manager disliked.

“The Fair Housing Act ensures that people searching for a home are protected from discrimination, no matter what part of the world their family comes from” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.  “The Justice Department will continue to vigorously protect the rights of all individuals to obtain housing free from discrimination.”

Under the agreement, which must be approved by the federal court in Texas, the defendants must adopt a nondiscrimination policy and enact or undertake numerous other corrective measures, including training, record keeping and monitoring.  In addition, the property manager who ordered the discrimination will no longer be employed by the owners of Stonebridge at Bear Creek Apartments or its management company.

Fighting illegal housing discrimination is a top priority of the department’s Civil Rights Division.  The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.

JUSTICE DEPT. ALLEGES MINNESOTA HOMEOWNERS ASSOCIATION DISCRIMINATED AGAINST FAMILIES WITH CHILDREN

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, November 25, 2013
Justice Department Charges Minn. Condominium Association, Management Company and Property Manager with Discrimination Against Families with Children

The Justice Department filed a lawsuit today against the homeowner’s association, management company and property manager of a Minnetonka, Minn., condominium complex, alleging that they discriminated against families with children in violation of the Fair Housing Act.

“Families with children should have the same ability to enjoy their homes as all other tenants,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division.  “The department is committed to enforcing the Fair Housing Act and ensuring that housing providers do not enact policies that discriminate against tenants or deprive tenants of certain amenities due to their familial status.”

The lawsuit, filed in the U.S. District Court for the District of Minnesota, involves the Condominiums of Greenbrier Village, a six-building complex that contains approximately 462 condominium units.  The lawsuit alleges that the Greenbrier Village homeowners association, property management company Gassen Company Inc. and Gassen employee Diane Brown adopted and enforced policies that discriminatorily limited or prohibited children from playing in the complex’s common grounds.

This lawsuit arose as a result of a complaint filed with the Department of Housing and Urban Development (HUD) by one family with children who lives at Greenbrier Village.  After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the department.

“Housing providers cannot impose more restrictive policies on families with children or evict them simply because their children leave the unit,” said HUD Acting Assistant Secretary Bryan Greene for Fair Housing and Equal Opportunity.  “HUD and DOJ are committed to enforcing the fair housing rights of all people, including families with children.”

The lawsuit seeks a court order prohibiting future discrimination by the defendants, monetary damages for those harmed by the defendants’ actions and a civil penalty.

“Each person is entitled to fair treatment under the law, a foundation for all thriving communities,” said Acting U.S. Attorney John R. Marti of the District of Minnesota.  “Unfortunately, families with children may be confronted with discrimination in housing.  The Department of Justice and the United States Attorney’s Office will intervene to obtain fair treatment for all Minnesotans.”
         
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.  Individ uals who believe they may have been victims of housing discrimination may contact the department at 1-800-896-7743 or by e-mail at fairhousing@usdoj.gov , or contact HUD at 1-800-669-9777 or through www.hud.gov/fairhousing .

The complaint is an allegation of unlawful conduct.   The allegations still must be proven in federal court.

APARTMENT OWNER AND STAFF CHARGED WITH DISCRIMINATION AGAINST FAMILIES WITH CHILDREN

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, October 25, 2013
Justice Department Charges California Apartment Owner and Staff with Discrimination Against Families with Children

The Justice Department today filed a lawsuit against the owner and operators of a Fremont, Calif., apartment complex, alleging that they had discriminated against families with children in violation of the Fair Housing Act by prohibiting children from playing in the common grassy areas of the complex.

“Families with children should have the same ability to enjoy their homes as all other tenants,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division.  

The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that the owners and rental staff of Woodland Garden Apartments, a 37 unit apartment complex, adopted and enforced a policy prohibiting children from playing outside in the common grassy areas of the complex.  The complex is owned by Fred Martin and managed by Fatima Rivera, both of whom are named in the suit.  Alfredo Rivera, a former maintenance worker who participated in enforcing the policy, is also named as a defendant in the suit.

This lawsuit arose as a result of complaints filed with the Department of Housing and Urban Development (HUD) by five families with children who lived at Woodland Garden Apartments, and Project Sentinel, a non-profit organization based in Santa Clara, Calif., that promotes fair housing.  After HUD investigated the complaints, it issued a charge of discrimination and the matter was referred to the Justice Department.

“Housing providers cannot impose more restrictive policies on families with children or evict them simply because their children leave the unit,” said Bryan Greene, HUD Acting Assistant Secretary for Fair Housing and Equal Opportunity.  “HUD and DOJ are committed to enforcing the fair housing rights of all people, including families with children.”

The lawsuit seeks a court order prohibiting future discrimination by the defendant, monetary damages for those harmed by the defendant’s actions and a civil penalty.

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.

JUSTICE AND ENGINEERING FIRM SETTLE ACCESSIBILITY LAWSUIT

FROM:  U.S. DEPARTMENT OF JUSTICE 
Tuesday, August 20, 2013
Justice Department Settles Fair Housing Lawsuit with Multi/Tech Engineering Services Inc.

The Justice Department announced that Multi/Tech Engineering Services Inc., an engineering firm based in Salem, Ore., has agreed to pay more than $60,000 to settle a lawsuit alleging that it had violated the Fair Housing Act by designing Gateway Village Apartments with steps and other features that made it inaccessible to people with disabilities.

“Steps, narrow doors and other accessibility barriers prevent people with disabilities from exercising the same rights to obtain housing of their choice that other people enjoy” said Acting Assistant General for the Civil Rights Division Jocelyn Samuels.  “We will hold builders and designers accountable and those who fail to follow the law will face enforcement action.”  

This settlement will assist in compensating victims of discrimination and in removing accessibility barriers at Gateway Village, a 275 unit apartment complex in Salem.  In May 2013, the Justice Department and the Fair Housing Council of Oregon (FHCO) also reached a settlement with the developers of the property to resolve the rest of the lawsuit, filed in September 2011.  The settlement must still be approved by the court.

Under the terms of the parties’ agreement, Multi/Tech will pay $32,000 to a settlement fund to compensate individuals with disabilities who were impacted by the accessibility violations.  Multi/Tech will also contribute $21,000 to the corrective actions already being undertaken by the developer according to the prior settlement agreement to make Gateway Village accessible to people with disabilities.  These corrective actions include removing steps from sidewalks, widening interior doorways, reducing threshold heights, replacing excessively sloped portions of sidewalks and installing properly sloped curb ramps to allow people with disabilities to access the sidewalks from the parking areas.  In addition, Multi/Tech will pay $7,902.70 in damages to the FHCO, the plaintiff-intervenor, whose investigation revealed the accessibility violations.    

“The right to accessible housing is a fundamental protection afforded by law,” said U.S. Attorney for the District of Oregon Amanda Marshall. “I am committed to working with the Fair Housing Council of Oregon, and our federal, state and local partners to ensure that those who design and construct housing units make them accessible to people with disabilities in compliance with the Fair Housing Act.”

The lawsuit arose as a result of a complaint filed by FHCO with the U.S. Department of Housing and Urban Development (HUD).  After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department.

“For more than two decades the law has required that newly-built multifamily housing provide equal access to people with disabilities,” said Bryan Greene, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity. “Throughout that time, HUD and the Department of Justice have educated builders, design professionals and others on those requirements, most recently through guidance issued this past April.  Where those efforts fail, our agencies will gain compliance through enforcement of the law."

 Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement. Those who believe they were subjected to unlawful discrimination at Gateway Village, either when they lived there or when they considered living there, should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993, or e-mail the Justice Department at fairhousing@usdoj.gov .

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.  Among other things, the Fair Housing Act requires that newly constructed multifamily housing with four or more units contain certain accessibility features so that the housing is accessible to and usable by people with disabilities.

DOJ SETTLES FAIR HOUSING LAWSUIT WITH HOMEOWNERS ASSOCIATION

FROM:  U.S. DEPARTMENT OF JUSTICE 
Tuesday, August 13, 2013
Justice Department Reaches Settlement with Homeowners Association and Property Management Company in Fair Housing Lawsuit Involving Occupancy Limits

The Justice Department announced today that the Townhomes of Kings Lake HOA Inc. (HOA) and Vanguard Management Group Inc. have agreed to pay $150,000 to settle a lawsuit alleging violations of the Fair Housing Act (FHA).  The lawsuit alleged that the HOA adopted and both defendants enforced occupancy limits that discriminated against families with children at the Townhomes of Kings Lake, a 249-townhome community in Gibsonton, Fla.

Under the proposed consent decree, which must still be approved by the U.S. District Court for the Middle District of Florida, the defendants will pay $45,000 to the family that initiated the original complaint filed with the U.S. Department of Housing and Urban Development (HUD), $85,000 into a victim fund to compensate other aggrieved families, and $20,000 to the United States as a civil penalty.  In addition, the proposed consent decree prohibits the defendants from discriminating in the future against families with children and requires the defendants to receive training on the requirements of the FHA.  In January 2013, while the lawsuit was pending, the HOA modified its occupancy limits to permit four occupants in 2-bedroom townhomes, six occupants in 3-bedroom townhomes, and eight occupants in 4-bedroom townhomes.

“The Fair Housing Act ensures that families with children are not denied their housing rights based on discriminatory occupancy policies,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously enforce fair housing laws that protect the rights of families with children.”

The lawsuit, filed in October 2012, arose from a complaint filed with HUD by a family with six children that was living at the Townhomes of Kings Lake.  After the family moved into their 4-bedroom townhome, the defendants indicated there was a problem with the number of people living in the home and threatened to evict the family.  The family eventually moved out of the Kings Lake community.  After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department.  The lawsuit alleged that the defendants violated the family’s rights, that the restrictive occupancy policies discriminated against other families with children, and that the defendants engaged in a pattern or practice of discrimination or denied rights protected by the FHA to a group of persons.

“Twenty-plus years of HUD guidance and cases have put housing providers on notice that occupancy standards which unfairly limit or exclude families with children violate the Fair Housing Act,” said Bryan Greene, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Department of Justice are committed to making sure that all people have equal access to the housing for which they financially qualify.”

U.S. JUSTICE DEPARTMENT FILES LAWSUIT REGARDING DISCRIMINATION AGAINST FAMILIES WITH CHILDREN

FROM: U.S. DEPARTMENT OF JUSTICE

Wednesday, October 10, 2012

Justice Department Files Fair Housing Lawsuit Against Florida Homeowners Association and Management Company for Discrimination Against Families with Children

The Justice Department today filed a lawsuit against the homeowners association and former manager of a 249-townhome community in Gibsonton, Fla., for violating the Fair Housing Act by discriminating against families with children.

The lawsuit, filed in the U.S. District Court for the Middle District of Florida, charges that Townhomes of Kings Lake HOA Inc. engaged in a pattern or practice of violating the Fair Housing Act by adopting, maintaining, ratifying, and, along with Vanguard Management Group Inc., enforcing occupancy standards unduly limiting the number of individuals who can reside in the townhomes. The suit also charges that the defendants violated the Fair Housing Act by threatening to evict a couple and their six minor children from the four-bedroom townhome they were renting and by taking other actions to interfere with their tenancy.

"The Fair Housing Act ensures that families with children have an equal right to use and enjoy housing of their choice," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Justice Department will continue its vigorous enforcement of fair housing laws that protect the rights of families with children."

The lawsuit arose when the family filed a complaint with the Department of Housing and Urban Development (HUD). After the family had moved into the home, the management company and the homeowners association indicated there was a problem with the number of children living there. The defendants’ occupancy policy allowed only six individuals to occupy the home, which was far more stringent than what Hillsborough County permitted. The homeowners association also adopted similarly restrictive limitations on the number of individuals who could live in two- and three-bedroom townhomes in Kings Lake. After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.

"Housing providers may set occupancy standards but those standards cannot be so restrictive that they exclude families who, based on a home’s overall size and configuration, should be able to live there," said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. "HUD and the Department of Justice are committed to taking action against anyone who unlawfully denies housing to families with children."

The lawsuit seeks a court order prohibiting future discrimination by the defendants, monetary damages for those harmed by the defendants’ actions, and a civil penalty. Any individuals who have information relevant to this case are urged to contact the Housing and Civil Enforcement Section of the Civil Rights Division at 1-800-896-7743.

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.

CALIFORNIA LANDLORD SETTLES SEXUAL HARASSMENT LAWSUIT FOR $2.13 MILLION

FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, September 11, 2012

California Landlord Settles Sexual Harassment Lawsuit for $2.13 Million

The Justice Department today announced that Rawland Leon Sorensen, the owner and manager of dozens of residential rental properties in Bakersfield, Calif., will be obligated to pay more than $2 million in monetary damages and civil penalties to settle a Fair Housing Act lawsuit alleging that he sexually harassed women tenants and prospective tenants.

The department’s complaint alleges that Sorensen sexually harassed the women by making unwelcome sexual comments and advances, exposing his genitals to women tenants, touching women without their consent, granting and denying housing benefits based on sex and taking adverse actions against women who refused his sexual advances. Sorensen has operated his rental business for more than 30 years. This represents the largest monetary settlement ever agreed to in a sexual harassment lawsuit brought by the Justice Department under the Fair Housing Act.

The consent decree, which is subject to approval by the U.S. District Court, will result in a judgment against Sorensen requiring him to pay $2,075,000 in monetary damages to 25 individuals identified by the United States as victims of his discriminatory conduct. That amount includes court costs and attorneys’ fees for two of the victims who are private plaintiffs. In addition, Sorensen must also pay a $55,000 civil penalty to the United States, the maximum penalty available under the Fair Housing Act. The consent decree requires Sorensen to hire an independent manager to manage his rental properties and imposes strict limits on his ability to have contact with current and future tenants.

"The conduct in this case was egregious," said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. "Women have the right to feel safe in their homes and not to be subjected to sexual harassment just because their families need housing. The Justice Department can and will vigorously prosecute landlords who violate those rights."

"The Eastern District of California is committed to enforcing the civil rights of all persons in the District," said Benjamin B. Wagner, U.S. Attorney for the Eastern District of California. "This case involved a course of conduct that spanned several years and affected many vulnerable persons. The decree sends a strong message to property owners that discrimination will not be tolerated."

Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.

SENIOR HOUSING OR NOT SENIOR HOUSING? THE FAIR HOUSING ACT ANSWERS THAT IN CALIFORNIA

FROM: U.S. DEPARTMENT OF JUSTICE
Friday, July 27, 2012
Justice Department Settles Housing Discrimination Lawsuit Related to Senior Housing in Santa Rosa, California

The Justice Department today announced an agreement with a California municipality and a homeowners’ association to resolve allegations of discrimination on the basis of familial status in violation of the Fair Housing Act. The settlement, in the form of a consent order, must be approved by the U.S. District Court for the Northern District of California.

The department’s lawsuit, which was filed on Nov. 21, 2011, alleged that the city of Santa Rosa, Calif., and La Esplanada Unit 1 Owners’ Association, a homeowners’ association, unlawfully sought to restrict residency at a housing development to seniors aged 55 and older. While the law allows an exemption for senior housing, the suit alleged that neither the city nor the homeowners’ association took the steps, such as routine age-verification, necessary to qualify for an exemption to the Fair Housing Act .

Under the terms of the consent order, the city of Santa Rosa will not take any enforcement action against the housing development to force it to exclude families with children, and will waive the estimated $12,500 in costs associated with any zoning changes that may be necessary to bring the city’s regulation of the property into compliance with federal law. Further, when the city, through its zoning code, permits or requires a developer or property owner to operate senior housing, it will, among other things, designate the age restriction of the zoned property in its ordinances and zoning maps, and require that property owners for these developments submit biennial age verifications for the city’s review and certification. The city will designate an agency to review and certify the biennial certifications.

The homeowners’ association also is prohibited from excluding families with children from the development unless it affirmatively elects to become an age-restricted community for persons 55 years of age or older and conforms to the requirements of the Fair Housing Act. The Fair Housing Act's requirements include ensuring that at least 80 percent of the occupied units are occupied by at least one person who is 55 years of age or older and ensuring there are proper age verification procedures in place. In addition, the homeowners’ association will provide compensatory damages to the aggrieved persons in an amount of $44,000 by providing a set-off to amounts it has claimed it is owed by the aggrieved persons.

The consent order also requires the homeowners’ association’s officers, agents and employees, as well as city employees and agents with responsibilities related to zoning and land use to receive fair housing training, and requires the homeowners’ association and the city to pay $5,000 each to the United States as a civil penalty.

"It is critical that families with children have opportunities to find housing," said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. "We are pleased to achieve a resolution in this case that balances the housing rights of families against the ability of a municipality and community to maintain senior housing."

"The resolution of this action is another step in the United States’ continuing commitment to protect all of its citizens and to provide fair housing opportunities for people of all ages," said Melinda Haag, U.S. Attorney for the Northern District of California. "We are pleased to come to a just and speedy resolution with the city of Santa Rosa and the Homeowners’ Association."

This lawsuit arose as a result of a complaint filed with the Department of Housing and Urban Development (HUD) by the owner and representative of a portion of the condominium development that was the subject of the defendants’ enforcement actions. After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.

"This settlement gives Santa Rosa a path forward to have senior housing and protect the rights of families with children under the Fair Housing Act," said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity.

LANDMARK $10.5 MILLION DISABILITY HOUSING LAWSUIT SETTLED

FROM:  U.S. JUSTICE DEPARTMENT
Monday, June 25, 2012
Justice Department Obtains Landmark $10.5 Million Settlement to Resolve Disability-Based Housing Discrimination Lawsuit
WASHINGTON – The Justice Department today announced its largest-ever disability-based housing discrimination settlement fund to resolve allegations that JPI Construction L.P. and six other JPI entities (collectively “JPI”) based in Irving, Texas, discriminated on the basis of disability in the design and construction of multifamily housing complexes throughout the United States.

Under the settlement, which was approved today by the U.S. District Court for the Northern District of Texas, JPI will pay $10,250,000 into an accessibility fund to provide retrofits at properties built by JPI and to increase the stock of accessible housing in the communities where these properties are located.  The settlement also requires JPI to pay a $250,000 civil penalty.  This is the largest civil penalty the Justice Department has obtained in any Fair Housing Act case.

“Today’s historic settlement demonstrates the Justice Department’s commitment to protecting the fair housing rights of persons with disabilities,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.  “Builders of multifamily housing must consider accessibility at the outset, or they risk significantly greater expense to retrofit properties.  As a result of this settlement, multifamily housing complexes will be retrofitted to comply with the Fair Housing Act and the Americans with Disabilities Act, and persons with physical disabilities will be afforded an equal opportunity to live in and visit these properties.”

“Equal access to housing for persons with disabilities is an important right protected by federal law,” said U.S. Attorney for the Northern District of Texas Sarah R. Saldaña.  “This settlement will help eliminate barriers and send a clear message that disability discrimination will not be tolerated.  Disabled residents should know that this district remains committed to protecting their fair housing rights.”

The lawsuit was filed in March 2009, after the Justice Department conducted an investigation and found accessibility barriers at various JPI properties.  Since 1991, JPI and its affiliates built 210 multifamily properties in 26 states and the District of Columbia; trial involving 32 of JPI’s properties was scheduled to begin July 9, 2012.

In addition to the $10.5 million payment, the consent order prohibits JPI from discriminating on the basis of disability in the future and from interfering with or preventing the retrofitting that will take place at the JPI properties.  Although JPI is no longer in the multifamily development and construction business, if JPI reenters the business, it is required to design and construct covered multifamily dwellings to fully comply with the requirements of the Fair Housing Act and the Americans with Disabilities Act.

The JPI entities that are responsible for paying the settlement amount are: JPI Construction L.P.; Multifamily Construction L.L.C.; JPI Apartment Development L.P., dba JPI Campus Quarters; Lifestyle Apartment Development Service L.L.C.; Jefferson Bend L.P., dba Jefferson at Mission Gate Apartments; Jefferson Lake Creek L.P., dba Jefferson Center Apartments; and Apartment Community Realty L.L.C.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  Individuals who believe that they may have been victims of housing discrimination should call the Housing Discrimination Tip Line (1-800-896-7743) or email the Justice Department at fairhousing@usdoj.gov.  Such persons may also contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.

JUSTICE-MORTGAGE COMPANY REACH SETTLEMENT OVER LENDING DISCRIMINATION

FROM:  U.S. DEPARTMENT OF JUSTICE
Thursday, May 31, 2012
Justice Department Reaches $21 Million Settlement to Resolve Allegations of Lending Discrimination by Suntrust Mortgage Borrowers Were Charged Higher Fees Based on Their Race or National Origin in 2005-2009 Before the Company Implemented New Policies
WASHINGTON – SunTrust Mortgage Inc., the mortgage lending subsidiary of the nation’s 11th-largest commercial bank, has agreed to pay $21 million to resolve a lawsuit by the Department of Justice that it engaged in a pattern or practice of discrimination that increased loan prices for many of the qualified African-American and Hispanic borrowers who obtained loans between 2005 and 2009 through SunTrust Mortgage’s regional retail offices and national network of mortgage brokers.
The settlement also requires SunTrust Mortgage to continue using policies and practices it adopted to prevent discrimination following the time period at issue in the lawsuit.

The settlement, which is subject to court approval, was filed today in federal court in Richmond, Va., where SunTrust Mortgage is headquartered.  The settlement comes after a two-and-a-half-year investigation by the Department of Justice, which included reviewing internal company documents and data on more than 850,000 residential mortgage loans SunTrust Mortgage originated between 2005 and 2009.  SunTrust Mortgage cooperated fully with the Justice Department’s investigation into its lending practices and agreed to settle this matter without contested litigation.

“Today’s settlement demonstrates that the Department of Justice takes seriously its responsibility to investigate mortgage lending practices during the mortgage boom years and, when the evidence shows the law was broken, to obtain compensation for victims of illegal conduct,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.  “We will, however, work constructively with responsible lenders like SunTrust Mortgage that are willing to take the necessary steps to ensure equal credit opportunity for all borrowers.  We commend SunTrust Mortgage for taking action to implement strong fair lending policies even before they knew the full results of our investigation.”

The settlement was filed in conjunction with the department’s complaint that alleges SunTrust Mortgage violated the Fair Housing Act and Equal Credit Opportunity Act by charging more than 20,000 African-American and Hispanic borrowers higher fees and interest rates than non-Hispanic white borrowers, not based on borrower risk, but because of their race or national origin.  Specifically, the allegations involve loans made to African-American borrowers between 2005 and 2008 through the more than 200 retail offices directly operated by SunTrust Mortgage in the Southeastern and Mid-Atlantic portions of the United States.  The allegations also involve loans made to African-American and Hispanic borrowers between 2005 and 2009 through SunTrust Mortgage’s national network of mortgage brokers.

“Racial and ethnic bias have no place in the lending market,” said Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia. “We are pleased that SunTrust Mortgage is taking steps to compensate the victims and to ensure fair and equal access to credit in the future.”

SunTrust Mortgage’s business practice during the time periods covered by the lawsuit allowed its loan officers and mortgage brokers to vary a loan’s interest rate and other fees from the price it set based on the borrower’s objective credit-related factors.  This subjective and unguided pricing discretion resulted in African-American and Hispanic borrowers paying more.

Prior to the settlement, SunTrust Mortgage had implemented policies that substantially reduced the discretion of its loan officers and mortgage brokers to vary a loan’s interest rate and other fees from the price it set based on the borrower’s objective credit-related factors, and that required the reasons for variations to be documented and reviewed by a supervisor.  Those policies, operating in concert with rules imposed by the Federal Reserve in April 2011 and incorporated into the settlement, restrict compensating loan officers and mortgage brokers based on the terms or conditions of a particular loan.  Today’s settlement requires SunTrust Mortgage to keep its improved policies in place for at least the next three years, as well as continuing to monitor its lending for signs of discrimination and providing monitoring reports to the United States.

The department’s investigation into SunTrust Mortgage’s lending practices began after a referral by the Board of Governors of the Federal Reserve to the Justice Department’s Civil Rights Division in December 2009 for potential patterns or practices of discrimination.  SunTrust Mortgage’s parent company, Atlanta-based SunTrust Bank, is a member of the Federal Reserve System, and one of the nation’s largest regional banks with $178 billion in assets and more than 1,600 branches in seven states and the District of Columbia.

“Racial or other illegal discrimination has no place in our credit markets,” said Federal Reserve Board Governor Elizabeth A. Duke.  “We are pleased that this settlement is designed to ensure fair access to credit.”

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF).  President Obama established the interagency FFETF to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.   The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.   The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

The proceeds of the settlement will be used to compensate the victims of SunTrust Mortgage’s discrimination, who were located in 34 states and the District of Columbia when the discrimination occurred.  The proposed settlement provides for an independent administrator to contact and distribute payments of compensation at no cost to borrowers whom the Justice Department identifies as victims of SunTrust Mortgage’s discrimination.  Borrowers who are eligible for compensation from the settlement will be contacted by the administrator.

JUSTICE AND MORTGAGE INSURANCE PROVIDER RESOLVE WOMEN ON MATERNITY LEAVE DISCRIMINATION ALLEGATIONS

FROM:  U.S. DEPARTMENT OF JUSTICE
Monday, April 30, 2012
Justice Department Reaches Settlement with Nation’s Largest Mortgage Insurance Provider to Resolve Allegations of Discrimination Against Women on Maternity Leave Settlement Provides Compensation to 70 Victims Identified by the Department of Justice and Establishes Fair Procedures for Treating Borrowers Taking Leave to Care for a New Child

The Department of Justice announced today that it has settled its lawsuit against the Mortgage Guaranty Insurance Corporation (MGIC) for discriminating against women on maternity leave in violation of the Fair Housing Act.   This settlement is the department’s first involving discrimination against women and families in mortgage insurance.

The lawsuit, filed on July 5, 2011, in the U.S. District Court for the Western District of Pennsylvania, alleged that MGIC required women on maternity leave to return to work before the company would insure their mortgages even for women who had a guaranteed right to return to work after the leave.   Most mortgage lenders require applicants seeking to borrow more than 80 percent of their home’s value to obtain mortgage insurance.

The settlement, which was approved by the  court today, establishes a $511,250 fund to compensate 70 individuals whom the United States identified as aggrieved by the alleged discriminatory treatment between 2007 and 2010.   The settlement also requires MGIC to pay a $38,750 civil penalty to the United States.   The Department of Justice identified the aggrieved individuals based on its extensive review of MGIC’s mortgage application records.   MGIC cooperated with the United States in turning over records during the course of settlement negotiations.

The settlement also requires MGIC to follow a number of detailed nondiscriminatory provisions in its future review of mortgage insurance applications involving women or men who are on, or have returned from, paid or unpaid leave related to the birth, adoption or foster care placement of a child.   The settlement also requires MGIC to monitor its treatment of applicants on leave to care for a new child, to train its employees on the requirements of the fair housing laws, and to provide nondiscrimination notices to mortgage applicants.

“No company involved in lending should force a parent to give up her or his legal right to take time off from work to care for a new child in order to obtain a mortgage loan,” said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division.   “Today’s settlement, coming at the close of fair housing month, protects that important right and clearly demonstrates the department will not hesitate to take action against companies who discriminate against women and families.”

“In bringing justice to these 70 victims, this office confirms our resolve to protect the civil rights of citizens of the Western District of Pennsylvania from illegal discriminatory practices,” said David J. Hickton, U.S. Attorney of the Western District of Pennsylvania.   “Discrimination in lending has profound and widespread consequences that will not be tolerated.”

“Mortgage insurance is essential in order for many people to buy a home,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “Borrowers should not be denied mortgage insurance for the very reason they often buy a home: to provide a decent home for an expanding family. HUD will continue to work with the Justice Department to take appropriate action against insurers and lenders who violate the Fair Housing Act.”

This lawsuit arose as a result of a complaint filed with the U.S. Department of Housing and Urban Development (HUD) by a Wexford, Penn., loan applicant.   After investigating the complaint, HUD issued a charge of discrimination and referred the case to the Department of Justice after the parties were unable to settle their dispute and the complainant elected to have the case heard in federal court.   The Department of Justice also filed the case under the attorney general’s authority to seek redress for housing discrimination that raises an issue of general public importance.   The HUD complainant will receive $42,500 from the settlement fund, to address her specific pain and suffering and compensate her for leave that she forfeited in response to MGIC’s requirement that she return to work.

Individuals compensated as part of the settlement will remain eligible to receive compensation from the separate private class action lawsuit brought by the HUD complainant.   MGIC has entered into a preliminary settlement of the class action lawsuit, which remains subject to court approval, allowing victims of MGIC’s alleged maternity leave discrimination to submit claims for extraordinary damages above the amount covered by the compensation provided through MGIC’s settlement with the United States.

JUSTICE ALLEGES MORTGAGE BANKER CHARGED HIGHER RATES & FEES TO AFRICAN-AMERICANS AND HISPANICS

FROM:  U.S. DEPARTMENT OF JUSTICE
Monday, April 2, 2012
Justice Department Alleges GFI Mortgage Bankers Engaged in Illegal Lending Discrimination Complaint Alleges New York-Based Company Charged Higher Interest Rates and Fees to African-American and Hispanic Borrowers
WASHINGTON – The Department of Justice and the U.S. Attorney’s Office for the Southern District of New York filed a lawsuit alleging that GFI Mortgage Bankers Inc., a mortgage banker with operations in seven states, violated federal fair lending laws by charging African-American and Hispanic borrowers higher interest rates and fees on home mortgage loans because of their race or national origin, not based on their creditworthiness.

The complaint, filed today in the Southern District of New York under the federal Fair Housing Act and Equal Credit Opportunity Act, alleges that GFI engaged in a pattern or practice of discrimination on the basis of race and national origin by charging African-American and Hispanic borrowers higher interest rates and fees on home mortgage loans compared to similarly-situated white borrowers.  The Department of Justice and the U.S. Attorney’s Office for the Southern District of New York investigated and filed the lawsuit jointly.

“Charging  people more for home loans simply because of their race or national origin – as we have alleged in our complaint against GFI – is illegal. The Justice Department will act aggressively to ensure that all people have equal access to credit and a level playing field ,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.  “For that reason, vigorous enforcement of fair lending laws remains a top priority.”
U.S. Attorney for the Southern District of New York Preet Bharara said, “As the lawsuit we filed today alleges, discrimination still exists in certain quarters and it has profound consequences for the victims.  At a time when so many American homeowners of all races and nationalities are struggling to make their mortgage payments, it is unacceptable that, as we allege, the impact of GFI Mortgage’s business practices resulted in its African-American and Hispanic customers paying higher fees and interest rates for their residential mortgages.  As today’s suit demonstrates, this type of discriminatory action will not be tolerated.  We will continue to work to ensure that fair lending laws are enforced throughout the district.”

“HUD and the Justice Department work together to end lending discrimination in America.  This case and others nationwide demonstrate our commitment to pursue lenders if they violate the Fair Housing Act and seek relief for discrimination victims,” said Department of Housing and Urban Development (HUD) Assistant Secretary for Fair Housing and Equal Opportunity John Trasviña.

From 2005 through at least 2009, GFI charged higher loan prices to African-American and Hispanic borrowers than it charged to similarly-situated white borrowers by charging higher interest rates and fees for home mortgage loans.  For example, an African-American borrower who took out a home mortgage loan in 2007 paid on average approximately $7,500 more over the first four years of the loan than a similarly-situated white borrower.  For a Hispanic borrower, the difference was approximately $5,600 more over the first four years of the loan than a similarly-situated white borrower.  The disparities, based on race or national origin, are statistically significant, and are unrelated to credit risk or loan characteristic.

During the period when the discrimination occurred, GFI had a policy or practice of allowing and encouraging its loan officers in New York and New Jersey to promote loan products, price loans and charge fees in a manner that was unrelated to credit risk or loan characteristics.  GFI knew that its loan officers priced loans in ways unrelated to a borrower’s creditworthiness, resulting in thousands of dollars in overcharges for African-American and Hispanic borrowers based on their race or national origin.  By providing its loan officers a substantial percentage of the profits generated on each loan, GFI’s compensation scheme provided strong financial incentives to loan officers to price their loan products in a discriminatory manner.  Moreover, GFI failed to supervise, train, or adequately monitor its loan officers to ensure that they were pricing loans in a non-discriminatory manner.

During the period when the discrimination occurred, the number of home mortgage loans issued by GFI increased from 974 in 2005 to 2,270 in 2009.  At the same time, GFI’s revenue from its home mortgage loan services increased from $305 million in 2005 to $768 million in 2009.

This case resulted from a referral by HUD to the Justice Department’s Civil Rights Division in 2010.