I was in the process of updating the online fair housing continuing education courses offered by my school (www.123ConEd.com), when I came across this recent Fair Housing Act case. Although this case was filed in Louisiana and not in Michigan, the case is still instructive for Michigan real estate professionals because it was brought under the federal Fair Housing Act, which applies equally in all states. Because Fair Housing is such an important topic, I thought that I'd post a summary of this recent case.
On September 30, 2008, the United States Department of Justice settled a fair housing lawsuit for $145,000 against the owner and the property manager of Pecan Terrace Apartments in Lafayette, Louisiana. The lawsuit alleged that the owner and property manager discriminated against families with children in violation of the Fair Housing Act. According to the Department of Justice’s complaint, Pecan Terrace Apartments, LLC, and Taufiq M. Sekhani had and exercised a policy of refusing to rent second floor units to families with children and discouraging families with children from renting at the complex.
This case arose as the result of the use of fair-housing testers, individuals who pose as renters for the purpose of gathering information about possible discriminatory practices in the rental of apartments. In February 2006, in the aftermath of the housing crisis caused by Hurricane Katrina, the Department of Justice announced Operation Home Sweet Home, which was a concentrated initiative to expose and combat housing discrimination in America. Operation Home Sweet Home targets housing discrimination all over the country, not just areas hit by Hurricane Katrina.
Under the terms of the settlement, the defendants were required to pay up to $115,000 to compensate victims of discrimination at Pecan Terrace Apartments, as well as pay $30,000 in civil penalties to the United States. The settlement also called for numerous corrective measures, including training on the requirements of federal housing law, a nondiscrimination policy, record keeping and monitoring.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Since January 1, 2001, the Department of Justice’s Civil Rights Division has filed 271 cases to enforce the Fair Housing Act, 54 of which alleged discrimination based on familial status.
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