Here is another example of a recent settlement of a Fair Housing Act lawsuit brought by the United States Department of Justice (“DOJ”). I try to post case summaries in order to provide timely updates to real estate agents and brokers about the "dos and don'ts" under the Fair Housing Act, since fair housing is such an important issue
Yesterday afternoon (Thursday, April 30, 2009), the DOJ settled a Fair Housing Act lawsuit that was brought against the owners, a manager and a former manager of Cottage Manor Apartments (located in Lakewood, New Jersey) because they discriminated against tenants on the basis of religion, national origin and race.
According to the lawsuit, the defendants transferred or attempted to transfer Hispanic and African American tenants from their apartments located in its most desirable building to make room for Orthodox Jews whom they courted as new tenants from 2002 to 2004. The defendants then assigned the non-Jewish tenants to less desirable apartments in the rear of the property, which had fewer amenities and were less well maintained than the most desirable building at the front of the property. The defendants charged the incoming Jewish tenants less rent than they did to non-Jewish tenants for apartments of similar size. Segregating tenants and providing discounted rents based upon religion, national origin or race is degrading and discriminatory.
The lawsuit originated from charges filed by HUD on behalf of current and former tenants of Cottage Manor Apartments. The lawsuit alleged that the apartment owners of Cottage Manor Apartments, Triple H. Realty LLC, its principal manager Harry Kantor and former managing agent Vincent Ortiz, violated the Fair Housing Act when they discriminated against Hispanic and African American tenants.
HUD’s investigation found that non-Jewish, African-American and Hispanic tenants received little to no apartment maintenance as compared to the maintenance provided to Jewish tenants. For example, Cottage Manor Apartments management refused to properly exterminate a non-Jewish family’s apartment, as well as failed to perform adequate maintenance repairs in the family’s bedroom and bathroom.
HUD’s on-site investigation confirmed that the maintenance of the one building occupied by non-Jewish tenants was substantially different. The building housing many of the Jewish families had a well-manicured lawn in the front courtyard that was enclosed by a white picket fence. Conversely, the buildings with the majority of African-American and Hispanic tenants were not well maintained, had little or no lawn in the courtyards, and the courtyards were not enclosed.
Cottage Manor management also instituted different lawn policies for tenants that were not Jewish. African-American and Hispanic tenants were told that they could not leave any toys or personal items on the lawns, but Jewish tenants were allowed to leave personal items on the lawns.
Under the terms of the settlement, the defendants were required to pay a total of $170,000 to identified victims of discrimination and an additional $30,000 to the government as a civil penalty.
Fair housing laws require equal access to housing, including equal access for persons with disabilities. The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.
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