HUD Charges Grapevine, Texas Housing Authority with Disability Discrimination

The U.S. Department of Housing and Urban Development (HUD) has charged the Grapevine Housing Authority (“GHA”); Jane Everett, Executive Director of GHA; and Bonnie McHugh, Vice-Chair of the GHA Housing Commission, with discriminating against, and failure to provide a reasonable accommodation for a tenant with a disability. Read the charge.

The Fair Housing Act prohibits discrimination based on disability. This includes prohibiting housing providers from making housing unavailable to persons based on disability. The Act also requires housing providers to make reasonable accommodation when necessary for persons with disabilities to have an equal opportunity to use and enjoy their homes.

Grapevine is located in northeast Tarrant County in the Mid-Cities suburban region between Dallas and Fort Worth and includes a larger portion of Dallas/Fort Worth International Airport than other cities. The population was 50,631 (2020).

HUD’s Charge of Discrimination alleges that the Grapevine Housing Authority, Ms. Everett, and Ms. McHugh terminated the lease of a tenant with diabetes following a medical episode caused by his blood sugar levels. They subsequently denied his reasonable accommodation request and continued eviction proceedings against him even after his doctor had provided evidence that his symptoms were managed following a change in medication and purchase of a medical alert bracelet.

A US Administrative Law Judge will hear HUD’s charge unless any party to the charge elects to have the case heard in federal district court. If a judge finds, after a hearing, that discrimination has occurred, they may award damages to the complainant for his losses as a result of the discrimination. The judge may also order injunctive relief and other equitable relief, to deter further discrimination, as well as payment of attorney fees. In addition, the judge may impose civil penalties to vindicate the public interest. If the federal court hears the case, the judge may also award punitive damages to the complainant.

People who believe they are the victims of housing discrimination should contact HUD at (800) 669-9777 (voice) or (800) 927-9275 (TTY) or file a complaint here: www.hud.gov/fairhousing/fileacomplaint.

Housing providers and others can learn more about their responsibility to provide reasonable accommodations and reasonable modifications for individuals with disabilities here. More information is available at www.hud.gov/fairhousing.

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Read the March 25, 2024 HUD release.

HUD Charges Luxury Condominium in Puerto Rico with Violating the Accessibility Requirements of the Fair Housing Act

The U.S. Department of Housing and Urban Development (HUD) has charged the architectural firm, the general contractor, and the owners for failing to design and construct Quantum Metrocenter Condominiums (“QMC”) in San Juan, Puerto Rico, in accordance with the accessibility requirements of the Fair Housing Act (“Act”) based upon a complaint started by HUD. HUD has also charged some of them with failing to approve a reasonable accommodation request made by two residents due to the inaccessible design and construction features of QMC. Read the Charge. The Act requires multifamily housing built after March 1991 to have accessible features for people with disabilities. The Act also prohibits discrimination because of disability, including refusing to allow reasonable accommodations that would otherwise permit homeowners with disabilities an equal opportunity to use and enjoy their housing. HUD’s Charge of Discrimination alleges that the charged failed to include accessible building entrances on accessible routes, accessible and usable public and common use areas, usable doors in units, accessible routes in units, accessible thermostats, reinforced walls for grab bars in bathrooms, and usable kitchens and bathrooms for persons with disabilities, especially those in wheelchairs, in the 80-residential unit two-tower buildings. The Charge also alleges they failed to approve a reasonable accommodation request for an accessible parking space, which would have allowed persons with disabilities to have better use of their units and the common area features of QMC, even while continuing to have to endure other inaccessible design and construction features. A US Administrative Law Judge will hear HUD’s charge unless any party elects to have the case heard in Federal district court. If the Administrative Law Judge finds, after a hearing, that discrimination has occurred, the judge may award damages to the resident for his losses as a result of the discrimination; injunctive relief and other equitable relief to deter further discrimination; payment of attorney fees; and civil penalties to vindicate the public interest. If the Federal court hears the case, the Judge may also award punitive damages to the resident. To assist residential unit owners and professionals, HUD began its Fair Housing Accessibility FIRST (FIRST) initiative to promote compliance with the Fair Housing Act design and construction requirements. The program offers comprehensive and detailed instruction programs, useful online web resources, and a toll-free information line for technical guidance and support. Housing providers can learn more about the FIRST program here.  Anyone who believes they are the victims of housing discrimination should contact HUD at (800) 669-9777 (voice) or (800) 927-9275 (TTY). Housing providers and others can learn more about their responsibility to provide reasonable accommodations for individuals with disabilities here and about accessibility requirements for multifamily housing here. Additional information is available at www.hud.gov/fairhousing. ***** Source: Read the April 5, 2024 HUD press release.

 

The HUD Fair Housing Month 2024 Opening Ceremony

The Opening Ceremony

HUD's Office of Fair Housing & Equal Opportunity (FHEO) will host the Fair Housing Month Opening Ceremony on April 11. The Opening Ceremony features:

• Demetria L. McCain, Principal Deputy Assistant Secretary, Fair Housing and Equal Opportunity.
• Melody C. Taylor, Deputy Assistant Secretary for Policy, Legislative Initiatives & Outreach | Executive Director of PAVE.
• Damon T. Hewitt, Keynote Speaker | President and CEO of the Lawyers’ Committee for Civil Rights Under Law.
• José R. Ballesteros, Poet and Professor of International Languages and Cultures at St. Mary's College of Maryland.

FHEO Table Talk Series

The FHEO Talk Talks Series provides the Agency with the opportunity to strengthen its partnerships with leading community stakeholders and inform HUD’s mission to ensure fair housing for all.

The series was developed in accordance with President Biden’s Executive Order on Advancing Racial Equity and Support for Underserved Communities through the Federal Government. It covers topics related to fair housing and racial equity and includes discussions with experts, practitioners, leaders, and social justice activists engaged in work relevant to fair housing opportunities.

To learn more or view previously recorded episodes of the FHEO Table Talks Series, please visit HUD’s YouTube channel.

PAVE website

On June 1, 2021, President Joseph R. Biden, Jr. directed the Department of Housing and Urban Development (HUD) Secretary Marcia Fudge to lead “…a first-of-its-kind interagency initiative to address inequity in home appraisals...”

In response to President Biden’s directive, Secretary Fudge, along with Domestic Policy Council (DPC) Director Susan Rice (and now Co-Chair), established the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE). Visit the PAVE website.

FHEO Technical Assistance

HUD and FHEO are continuously developing technical assistance materials, resources, and trainings to educate housing consumers and providers on their fair housing rights and responsibilities. You can view all HUD training opportunities here. During Fair Housing Month 2024, FHEO is highlighting its efforts to provide fair housing education to our stakeholders. Click the links below to view these recently developed technical assistance resources:

• Assistance Animals and Fair Housing: Navigating Reasonable Accommodations Webinar
• Data and Fair Housing Planning: AFFH-T Video Series
• Fair Housing Act’s Familial Status Protections Webinar
• OHC and FHEO Conference - Fair Housing 2021: What Counselors Need to Know
• Preventing Sexual and Other Discriminatory Harassment in Housing
• Respondent’s Obligations Toolkit
• LGBTQIA+ Fair Housing Toolkit

FHEO Outreach Tools

 

Visit the FHEO Outreach Tools page to view and download fair housing materials and resources, including posters, graphics, and Microsoft Teams backgrounds. These materials can be shared with your stakeholders to raise awareness of fair housing rights, educational opportunities, and resources. 

Visit the Outreach Tools page. 

How to Report Housing Discrimination

 

If you believe your rights may have been violated, we encourage you to report housing discrimination.

Because there are time limits on when an allegation can be filed with HUD after an alleged violation, you should report housing discrimination as soon as possible. When reporting housing discrimination, please provide as much information as possible, including:

• Your name and address
• The name and address of the person(s) or organization your allegation is against
• The address or other identification of the housing or program involved
• A short description of the event(s) that cause you to believe your rights were violated; and
• The date(s) of the alleged violation.

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Source: HUD Fair Housing Month page.

HUD Commemorates April as National Fair Housing Month

 

Adrianne Todman, Acting Secretary of the U.S. Department of Housing and Urban Development (HUD), released the following statement in commemoration of Fair Housing Month and the signing of the Fair Housing Act of 1968, which prohibits discrimination on the basis of race, color, national origin, religion, sex (including sexual orientation and gender identity), disability, and familial status. “For more than half a century, the federal government has sought to end discrimination in housing through enforcement of the Fair Housing Act. Under the Biden-Harris Administration, the Department of Housing and Urban Development takes its responsibilities under that law and other civil rights laws very seriously and works diligently to ensure people have full access to housing that meets their needs,” said HUD Acting Secretary Adrianne Todman. “Everyone in this country deserves to live free from discrimination, bias, and danger. This Fair Housing Month, we are recommitting ourselves to the important work of protecting individuals and families across America from harm.” This year’s Fair Housing Month theme, Fair Housing: The ‘Act’ in Action, underscores the Biden-Harris Administration’s commitment to combating discrimination in housing, protecting fair housing rights for all who call America home, and redressing our nation’s past discriminatory policies and practices. "This April, we reflect on the hard-fought battle for fair housing and recommit efforts to eliminate discrimination and disparities in housing across our country” said Demetria L. McCain, Principal Deputy Secretary for Fair Housing and Equal Opportunity. “This month and every month, HUD is taking meaningful action to advance housing justice and protect the rights of all people to live free from discrimination in the homes of their choice, regardless of their race, color, religion, national origin, sex (including sexual orientation or gender identity), disability, or familial status.” Each April, HUD recognizes Fair Housing Month alongside communities, fair housing advocates, and fair housing organizations to underscore the significance of the Fair Housing Act, raise public awareness of fair housing rights and responsibilities, highlight fair housing enforcement efforts, and emphasize the importance of creating diverse and inclusive communities. HUD will commemorate Fair Housing Month with an Opening Ceremony on April 11, 2024, at 2:00 P.M. (EDT), that will showcase HUD’s efforts to advance and protect fair housing rights to ensure that all people have the right to obtain the housing of their choice, free from discrimination. Register to attend the Fair Housing Month Opening Ceremony here. There is no cost to register. For a complete listing of HUD Fair Housing Month events and activities, visit: https://www.hud.gov/FHM. Follow the Office of Fair Housing and Equal Opportunity on Facebook for additional news and updates. People who believe they have experienced discrimination may file a complaint by contacting HUD's Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 877-8339 (Relay). Housing discrimination complaints may also be filed by going to hud.gov/fairhousing. For additional information including educational materials for residents, housing providers and others, visit https://www.hud.gov/fairhousing.

Maryland Fair Housing Forum is on April 18th

 

Join us at our Fair Housing Forum that bring communities together to discuss fair housing issues and antidiscrimination efforts. To register, click on the picture above or click HERE.   Victim of Discrimination? Training & Partnerships HOME      ABOUT MCCR      SERVICES      PUBLICATIONS      EVENTS      PRESS      CONTACT US

 

Urge Your Maryland Senator to Vote Yes on SB57 to Support Fair Housing

SB57 has passed through second reader! This bill would carve a narrow exemption in two party consent law to allow fair housing testers to record their testing interactions in accordance with the Federal Department of Housing and Urban Development's testing recommendations.   

39 other states allow one-party recordings for fair housing testing. All of the states that have had large fair housing court settlements have relied on recordings. SB57 will strengthen Maryland’s ability to enforce its fair housing laws. SB57 is on its third and final reader in the Senate TODAY. Take one minute to contact your senator and ask them to vote YES on SB57.

Click HERE to urge your State Senator to support SB57!
 

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Source: Economic Action Maryland email, March 18, 2024.

The Difficult Problem of Fighting Source of Income Discrimination

 

Over 2 million low-income families use Section 8 housing vouchers to cover their rent. The program is one of the federal government’s most effective, keeping more than 5 million individuals housed. Nationally, all vouchers are getting used. But housing voucher discrimination limits where exactly recipients can live. A household with a voucher sometimes discovers that the only willing landlords are in unsafe neighborhoods, or that they must need to move into a different school district to use the voucher. There also are a number of landlords who say that the reason why they're not renting to someone is because of the voucher when really it is because of their racial discrimination or discrimination on the basis of disability. 

To combat this, 17 states and dozens of cities and counties ban source-of-income discrimination covering almost 60% of renters. Enforcement of these laws, though, is lacking or spotty in many places. The best systems for enforcement include well-publicized outreach to property owners and the real estate community to inform them of the law and their obligations. 

The most powerful method of enforcement involves “testing,” in which a government agency or nonprofit organization submits two very similar rental applications to a property owner, with one application including a housing voucher and the other without. Authorities than can determine if discrimination possibly is suspected, and proceed with enforcement. Subsequent publicizing of those results and getting public judgments is important to show other property owners that the city or state is serious about voucher discrimination enforcement. 

However, such testing is expensive. Funding for housing discrimination testing comes primarily from HUD, which until February 12, 2024, did not give funding to its funded agencies to do sources-of-income discrimination investigations. This decision to fund HUD recipients is a positive development. Unfortunately, most agencies and nonprofits do not receive HUD funding, and cannot do testing because of the cost. Commitment and action by these authorities is also needed to reduce this stubborn problem.

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Read the Route Fifty January 31, 2024 article.

HUD Increases Efforts to Reduce Source of Income Discrimination

HUD recently took an important step forward to protect families with vouchers, authorizing the use of federal Fair Housing Assistance Program (FHAP) funds by state human rights agencies for testing and investigation of source of income discrimination cases. This follows a similar 2021 memo authorizing source of income discrimination testing and investigations at HUD funded fair housing centers.

Specifically, HUD informed organizations and agencies funded under HUD’s Fair Housing Assistance Program (FHAP) that funding can be used to support "source of income testing activities, source of income testing projects that are designed to uncover discrimination that violates the Fair Housing Act or substantially equivalent state or local fair housing laws.

In addition, HUD informed Fair Housing Initiatives Program (FHIP) grantees that FHEO will approve and pay for FHIP testing activities as long as they are designed to identify violations of the Fair Housing Act, whether they be instances of intentional discrimination, discrimination with unjustified discriminatory effects or less discriminatory alternatives, refusals to grant reasonable accommodations for persons with disabilities, or cases where discrimination erodes compliance with the duty to affirmatively further fair housing. Some state and local fair housing laws, which have been deemed by HUD as substantially equivalent to the federal Fair Housing Act, may include “source of income” or the like as a protected class. Testing for discrimination because of someone’s source of income could be funded with FHIP PEI funds because such discrimination can violate the Fair Housing Act.

This memorandum also clarifies that FHAP funds can be used to conduct source of income testing activities to detect discrimination that may violate the Fair Housing Act or substantially equivalent state or local fair housing laws. 

In accordance with 24 C.F.R Part 115, FHAP agencies are permitted to use HUD funds to enforce substantially equivalent local or state laws. FHAP agencies may use FHAP funds to conduct source of income testing as an investigative tool in processing dual-filed complaints. FHAP funds may also support source of income testing activities as part of special enforcement efforts, partnerships initiatives, or other fair housing projects developed by FHAP agencies to enforce state or local fair housing laws. 

HUD said that it is doing this because one specific type of source-of-income discrimination - based on someone’s use of a Housing Choice Voucher (HCV) - remains extremely high. This is important particularly because the HCV program is HUD’s primary program to assist very low-income families, elderly persons, and individuals with disabilities to afford decent, safe, and sanitary housing in the private housing market. Under the law, HCV participants can apply to any housing meeting HCV requirements are not located in subsidized housing projects. In practice, housing providers - especially those with units in low-poverty, well-resourced neighborhoods - often refuse to rent or sell to voucher holders. And because households who use HCVs are disproportionately Black, Hispanic, people with disabilities, families with minor children, and female-headed households, discrimination against voucher holders can violate the Fair Housing Act’s prohibition on discrimination because of protected characteristics, including but not limited to race, color, national origin, sex, disability, and familial status.

HUD regards fair housing testing as a critical investigative tool because it effectively detects hidden disparate treatment in housing practices. However, the Department urges FHAP agencies to not limit their testing and enforcement programs to intentional discrimination. HUD encourages testing activities designed to identify discrimination that violates the Act - through disparate treatment or unjustified discrimination. 

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Read HUD's February 12, 2024 Source of Income Discrimination Memorandum.

Justice Department and North Carolina Reach $13.5 Million Agreement with First National Bank of Pennsylvania to Regarding Redlining

The First National Bank of Pennsylvania (FNB) has agreed to pay $13.5 million to resolve allegations by the U. S. Department of Justice (DOJ) and the State of North Carolina that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic North Carolina neighborhoods. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of residents in those communities.

The complaint alleges that from 2017-2021, FNB failed to provide mortgage lending services to predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem, and discouraged people seeking credit there from obtaining home loans. Instead, FNB’s home mortgage lending focused disproportionately on white areas of the cities. Other lenders had applications in predominantly Black and Hispanic neighborhoods at 2.5 times the rate of FNB in Charlotte and 4 times the rate in Winston-Salem. FNB’s branches in both cities were also mostly located in predominantly white neighborhoods. The bank closed its only branch in a predominantly Black and Hispanic neighborhood in Winston-Salem in 2021.

The complaint further alleges that FNB had mortgage loan officers working out of predominantly white areas to generate loan applications and that the bank did not track how they developed loan referrals or how they distributed the bank’s mortgage marketing materials.

Under the two proposed consent orders, FNB will invest $13.5 million to increase credit opportunities for communities of color in Charlotte and Winston-Salem, including: (1) $11.75 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance loans for residents of majority-Black and Hispanic neighborhoods in FNB’s service areas; (2) $1 million on community partnerships to provide services related to credit, consumer financial education, homeownership, and foreclosure prevention for residents of predominantly Black and Hispanic neighborhoods in those areas; (3) $750,000 for advertising, outreach, consumer financial education, and credit counseling for predominantly Black and Hispanic neighborhoods in the areas; (4) open three new branches in predominantly Black and Hispanic neighborhoods in the two cities, with at least one mortgage banker assigned to each branch; (5) hire a director of community lending to oversee the development of lending in communities of color; (6) retain independent consultants to enhance its fair lending program and better meet the communities’ needs for mortgage credit; (7) conduct a community credit needs assessment; (8) evaluate its fair lending compliance management systems; and (9) conduct staff trainings.

With assets of over $45 billion, FNB is headquartered in Pennsylvania and operates approximately 350 branches throughout the District of Columbia, Maryland, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia, and West Virginia. It is among the 100 largest US banks.

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Photo by Andrew Stapleton on Unsplash

Read the February 5, 2024 DOJ release.

CFPB and Justice Department Sue Developer and Lender for Bait-and-Switch Land Sales and Predatory Financing

The Consumer Financial Protection Bureau (CFPB) and the U.S. Department of Justice have sued Colony Ridge, a Texas-based developer and lender, for operating an illegal land sales scheme and targeting thousands of Hispanic borrowers with false statements and predatory loans. Colony Ridge allegedly sells unsuspecting families flood-prone land without water, sewer, or electrical infrastructure, and that the company sets borrowers up to fail with loans they cannot afford. Roughly 1-in-4 Colony Ridge loans ends in foreclosure, after which the company repurchases the properties and sells them to new borrowers. The CFPB and Justice Department are seeking redress for borrowers harmed by Colony Ridge and an immediate end to its illegal practices. This is the CFPB’s first federal court lawsuit charging a defendant with violations of the Interstate Land Sales Full Disclosure Act.

The lawsuit names as defendants three Texas-based Colony Ridge affiliate companies, as well as Loan Originator Services, a nonbank mortgage company licensed to originate loans in Texas. Colony Ridge has developed more than 40,000 lots spread across an unincorporated area of Liberty County, Texas, approximately 30 miles northeast of Houston. Colony Ridge markets these subdivisions using the names “Terrenos Houston” and “Terrenos Santa Fe.”

Colony Ridge targets Spanish-speaking borrowers: it advertises almost exclusively in Spanish, often in social media posts featuring, for example, national flags and regional music from Latin America. In these advertisements, Colony Ridge promises consumers the dream of home ownership with its own seller financing: an easy-to-obtain loan product that requires no credit check and only a small deposit. The complaint alleges that Colony Ridge has lured thousands of Hispanic consumers into their predatory loan products. Foreclosure and property deed records from September 2019 through September 2022 show that Colony Ridge initiated foreclosures on at least 30% of seller-financed lots within just three years of the purchase date, with most loan failures occurring even sooner. Records also confirm that Colony Ridge accounted for more than 92% of all foreclosures recorded in Liberty County between 2017 and 2022.

Specifically, the complaint filed today alleges that Colony Ridge:

• Misleads borrowers about infrastructure on the lots it sells: Colony Ridge has falsely represented that lots in the Terrenos Houston subdivisions were sold with water, sewer, and electrical infrastructure already in place. The complaint cites numerous advertisements, including TikTok videos where the company makes claims like “Terrenos Houston tiene todos los servicios de ciudad por cada terreno” (“Terrenos Houston has all city services for each lot.”). After applicants pay a non-refundable deposit, Colony Ridge discloses the properties may not provide those services and says it only in English.
• Sells lots that flood with rain and raw sewage: The complaint alleges that Colony Ridge employees fail to inform borrowers of flood risk when lots have repeatedly flooded in the past, or falsely tells them the lots have not flooded. In fact, in parts of the Terrenos Houston subdivision, rain causes significant flooding, causing raw sewage to run through or around borrowers’ property, and damaging their personal belongings.
• Churns through borrowers in a cycle of foreclosure: When families fall behind on payments and enter foreclosure, it allows Colony Ridge to “flip” the properties by repurchasing and reselling them, often at higher prices. Foreclosure and property deed records show that Colony Ridge flipped at least 40% of all the properties it sold between September 2019 and September 2022, selling approximately 8,237 properties twice, 3,267 properties three times, and 2,067 properties four or more times in three years.
• Targets Hispanic consumers with predatory loans: Through direct-to-consumer marketing on websites, social media engagement, and telemarketing, Colony Ridge targets Hispanic consumers. Colony Ridge then exploits language barriers during its sales process and uses high-pressure sales tactics to push borrowers to obtain their loan products quickly. The loans have exorbitant interest rates. Between 2017 and 2021, interest rates on Colony Ridge’s loans ranged from between 10.9% to 12.9%, while a standard 20-year fixed rate loan averaged 2.35% to 4.05% during the same timeframe. And in extending the loan, Colony Ridge and Loan Originator Services did not collect information needed to determine if applicants can afford the loan.
• Exploits language barriers at borrowers’ expense: While Colony Ridge conducts most of its marketing activities in Spanish, when it comes to the actual transaction, it offers important documents only in English. Failing to offer borrowers accurate translations of contracts, deeds, and other documents in the language in which it conducts the sales and exploiting borrowers’ limited English proficiency violates federal law.

The CFPB alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Equal Credit Opportunity Act and its implementing regulation. The CFPB separately alleges that Colony Ridge engaged in unlawful deception and violated the Interstate Land Sales Full Disclosure Act and its implementing regulations. The Justice Department joined the CFPB’s claim of a violation of the Equal Credit Opportunity Act and its implementing regulation, and separately alleges that Colony Ridge violated the Fair Housing Act. The complaint seeks to stop Colony Ridge’s alleged unlawful conduct, provide redress for affected consumers, and impose a civil penalty payable to the CFPB victims relief fund. If the defendants are found liable, the amount of any restitution will be determined in the litigation in federal court.

Read today’s complaint.

The CFPB’s website has resources about credit discrimination and mortgages. Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).

Employees of companies who believe their company has violated federal consumer financial protection laws are encouraged to send information about what they know to whistleblower@cfpb.gov.

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Read the December 20, 2023 CFPB article.

Read the December 20, 2023 Justice Department release.

National Apartment Management Company Entrata Agrees Not to Discriminate

A management firm that administers leases and tenant applications in Washington, D.C. and buildings across the country - including in Baltimore - has agreed in a settlement to evaluate its software and ensure none of its properties discriminate against renters who receive government housing subsidies. The settlement agreement, announced December 12th by the D.C. Office of the Attorney General (DCOAG), Brian L. Schwalb (D), resolves a lawsuit filed by the Equal Rights Center against the owners and managers of the Adams View Apartments, a Ward 3 apartment complex located in Cleveland Park, which offers studio, one- and two-bedroom apartments for rent.

The full settlement agreement is available here.

Low-income renters who receive government assistance are protected against discrimination in D.C. by several laws, including the District’s fair housing legislation. It is against the law to discrimination based on “source of income” for paying with government-backed vouchers rather than money from their own checking accounts.

Earlier in 2023, the ERC filed suit against the owners and managers of the Adams View Apartments (Adams Investment Group, Adams-Cathedral LLC, the Barkan Management Company, Broadhouse Management Group LLC, and Entrata, Inc.) alleging violations of the District’s Human Rights Act and Consumer Protection Act. The ERC alleged that the building and its operators systematically refused to accept voucher-holders as tenants. Defendants in the case have said that they did not use discriminatory practices and, according to the settlement agreement, agreed not to discriminate in the future against any prospective renters on any basis prohibited by federal or local law. 

Lehi, Utah-based Entrata, according to its website, "Offer(s) a wide variety of online tools including websites, mobile apps, payments, lease signing, accounting, and resident management, Entrata® PaaS currently serves more than 20,000 apartment communities nationwide." It runs software that enables landlords and property managers to run more leasing processes digitally, and was formerly known as Property Solutions.

Under the settlement:

(1) Entrata agreed to review and change its practices in jurisdictions where source-of-income discrimination is prohibited - such as Maryland - and hard-encode in its internal operations and documents that housing vouchers are accepted at the properties it represents.

(2) The company further agreed to “undertake a review of the current” operating documents to “ensure that [in no] state that Housing Choice Vouchers, Section 8, or other housing vouchers are not accepted.”

(3) Undergo annual fair housing training for all staff involved in any aspect of the rental process, in addition to regular evaluations to verify ongoing compliance with DC law. 

(4) The defendants also agreed to pay $235,000 to the ERC and the District “for restitution, damages, future training and compliance, attorney’s fees, and civil penalties,” the D.C. attorney general’s office said.

OAG’s civil rights work complements the work of the District’s Office of Human Rights (OHR), which is the primary District agency that investigates individual discrimination complaints. You can file a complaint with OHR at ohr.dc.gov/service/file-discrimination-complaint or call 202-727-4559.

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Read the December 12, 2023 Washington Post article.

Read the December 12, 2023 DCOAG press release.