Discrimination in Rental Housing
Property Management Company to Pay Nearly $75,000 to Resolve Service Members Civil Relief Act Claims
The U.S. Department of Justice (USDOJ) has announced that FPI Management Inc. (FPI) has agreed to pay $74,087 to resolve allegations that it violated the Service Members Civil Relief Act (SCRA) by imposing unlawful charges on nine service members who were exercising their right to terminate their apartment leases after receiving military orders to relocate. The SCRA extends various protections to service members to allow them to devote their entire energy to the national defense, including protections for service members in areas such as evictions, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, interest rates, foreclosures and automobile leases; and allowance to terminate their residential leases after entering military service or receiving military orders for a permanent change of station, deployment or retirement. Landlords are prohibited from imposing an early termination charge on service members who terminate their leases under the SCRA.
The USDOJ started investigating FPI’s leasing practices after receiving a referral from Coast Guard Legal Assistance about two times where FPI attempted to require service members who were terminating their leases early under the SCRA to repay discounts they had received when they signed the lease in Oakland, California. Under the consent order, FPI has agreed to pay $51,587 to the service members and a $22,500 civil penalty. The order also requires FPI to repair the service members’ tenant database entries, implement new policies and procedures complying with the SCRA, and train employees on the SCRA.
Service members and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations: legalassistance.law.af.mil.
