LA homeowners & Advocates are Suing Insurance Companies for not Covering Damages from the Fires

 

The wildfires that swept through Los Angeles neighborhoods in this January took 30 lives and burned thousands of homes. Many homeowners say that insurance companies are telling them they aren't required to cover the damages.  There are two categories of insurers in Los Angeles. There are private insurers who are, in some cases, denying these claims because they are injecting a higher standard for determining whether, in fact, smoke damage has occurred. Then there is the California FAIR Plan, the insurer of last resort that is a private association of the private insurers. In 2017-2018, the FAIR Plan submitted to the California Department of Insurance (CDI) changes to its fire insurance policy, requiring that there be permanent physical changes to the property, which is contrary to state law.

The insurance commissioner has issued a bulletin that made clear that smoke damage is still a covered loss in California, that insurers have a duty under California law to reasonably investigate smoke damage claims. The problem is that the department ultimately doesn't decide the claims, and so people are forced to resort to go to court to have these claims paid.

So insurers have been asking and getting substantial rate increases since the 2018 Camp Fire, where they lost about $12 billion. State Farm, after the LA wildfires, filed for an emergency rate increase of 22% in California. That's been estimated to mean an additional $600, on average, per policyholder. And now we're waiting to see what the insurance commissioner will finally decide with regard to that rate increase.

Clashes over covering smoke damage have become a growing issue in states that have had devastating fires in recent years - including California, Colorado and Hawaii, said Amy Bach, executive director of United Policyholders, a public interest advocacy group. Home insurance companies have responded by looking for ways to limit their financial risks. Some major carriers have fled wildfire-prone areas. A 2022 report by the nonprofit Consumer Watchdog found that others were adding new limits to their coverage and restricting investigations into the scope of fire damage.

Consumer Watchdog has just sued the CDI and Commissioner Ricardo Lara to protect California homeowners from hundreds of millions in surcharges that may soon be on their insurance bills. The surcharges result from a decision reached by the Commissioner last summer to allow the insurance companies that comprise and operate the California FAIR Plan to pass-through costs to their policyholders when the FAIR Plan is forced to assess those companies for funds after a catastrophe.  

Read the April 13, 2025 NPR article.

Read the April 15, 2025 Consumer Watchdog article.

Read the April 14, 2025 Consumer Watchdog Petition/Complaint.

Unreleased HUD Letter Shows D.C. Housing Authority Failing Disabled Tenants

 

The D.C. Housing Authority (DCHA) is negotiating a resolution with the federal government after being ordered this past summer to fix extensive violations of federal laws regarding the treatment of people with disabilities, including sometimes taking years to handle requests for elevator access or adequate doorway space for wheelchairs. This is after the U.S. Department of Housing and Urban Development (HUD) condemned the authority for remaining “woefully out of compliance” with federal law and, in a letter on August 23rd, specified a series of steps it must take to remedy the failures. Among the city’s largest landlords, the authority serves about 30,000 households through housing vouchers and mixed-finance and traditional public housing properties.

The letter came after a HUD report in 2022 lambasted the authority for dozens of findings of faulty governance and poor performance. In addition to noncompliance with HUD fair housing regulations, that report also covered issues such as the agency’s extremely high public housing vacancy rate, dangerous and unsanitary conditions, and problems with how it calculated rents for low-income housing voucher holders. In 2022, then-D.C. Attorney General Karl A. Racine (D) filed a lawsuit against the authority, alleging widespread discrimination against people with disabilities, some of whom the attorney general’s office said had waited as long as a decade for housing that met their needs. The suit remains ongoing.

The letter from HUD says that in 2023 it conducted on-site surveys of 33 public housing units out of over 700 that DCHA had said conformed to Uniform Federal Accessibility Standards. None of the inspected units were fully compliant, HUD said. The violations included wheelchair ramps that exceeded maximum slopes, playgrounds that had no ramps at all, handrails that were nonexistent or at improper heights, and doorways narrow enough to make it difficult or impossible for wheelchair users or others with mobility issues to get through. In one case, a woman spent years in a public housing unit where the bathroom doorway was too narrow for her motorized wheelchair. The deficiency required the woman “to undergo a painful routine of propping herself up using upper body strength to get into and out of the bathroom multiple times each day.” In 2022, after the woman filed a complaint with HUD, the authority moved her to a unit with accessible features that had been vacant for nearly three years. In another case, a 74-year-old woman who had a full knee replacement lived in a third-floor apartment and requested to move to a building with an elevator. DCHA did not approve her request until more than two years later. The letter described maddening paperwork delays and demands for verification from doctors about disabilities that were evident, such as an 81-year-old woman’s difficulty maneuvering in her bathroom, creating a need for grab-bars at her toilet and shower. DCHA failed to maintain adequate paperwork to document compliance with federal law, the letter said, and at times did not cooperate with HUD’s investigation. In another case detailed in the letter, a woman began at-home dialysis, and DCHA approved a larger apartment for her to accommodate the necessary equipment. It then took the authority almost four months to issue the new voucher, despite repeated emails from her lawyer and a caseworker at Miriam’s Kitchen.

DCHA has a long history of failing to comply with federal laws designed to ensure that people with disabilities are not shut out of access to housing. In 2001, The Post wrote about children who lived in inaccessible D.C. public housing and were forced to drag themselves up steps. That year, HUD required the housing authority to make over 500 units accessible to people with disabilities after finding the authority never complied with federal accessibility legislation.

HUD’s letter in August specified corrective actions DCHA must take, including conducting a needs assessment of all tenants and applicants to its public housing and voucher programs. DCHA was required to revamp policies and training, retain an architect to survey properties, and install a full-time coordinator “with sufficient expertise and staff” to handle requests for reasonable accommodations from those with disabilities. HUD spokespeople did not respond to a message requesting comment about DCHA’s compliance. The federal agency’s efforts to follow up on the demands of its Office of Fair Housing and Equal Opportunity, which focuses on eliminating housing discrimination, will be more complicated with the wave of recently-announced worker firings and spending cuts.

Burdo, the DCHA spokeswoman, said the housing authority’s steps so far have included moving its ADA compliance office to under the agency’s legal office, addressing requests from residents, examining its policies and trying to improve its data integrity. DCHA also has begun trying to hire an architect to confirm compliance of units with accessibility standards, Burdo said.

Sunny Desai, managing attorney at Legal Counsel for the Elderly, has advocated for DCHA clients for several years and spoken about the agency’s problems at D.C. Council housing committee meetings. He said intransigence, lack of transparency, and stonewalling were major problems under its past leadership. “They’re far more receptive” under Pettigrew, but change is not coming fast enough, Desai said.

Read the March 6, 2025 Washington Post article.

LDF Reaches Settlement on Behalf of Housing Opportunities Made Equal (New York), Requiring Improved Training and New Practices to Prevent Housing Discrimination

 

Read a PDF of the Legal Defense Fund's statement here.

The Legal Defense Fund (LDF) has reached a settlement in Housing Opportunities Made Equal Inc. (HOME) v. Avant Realty – a lawsuit born out of HOME’s investigation into the company’s real estate practices. The lawsuit and settlement come after HOME alleged Avant Realty limited housing opportunities for Black residents of Buffalo, New York through racial steering, a discriminatory practice where real estate agents or brokers direct people seeking homes into specific neighborhoods based on their race. While investigating real estate agents in the Buffalo area, HOME found that Avant Realty treated Black people seeking homes differently than their white counterparts. LDF and HOME alleged Avant Realty’s practices violated the Fair Housing Act and New York State Human Rights Law.

As a result of the settlement, HOME will provide additional training to Avant Realty’s staff on fair housing laws and best practices to avoid racial steering. Avant Realty will also adopt a non-discrimination policy and has agreed to ongoing monitoring of its real estate practices by HOME.

“Housing Opportunities Made Equal (New York) is satisfied by the amicable resolution of this matter and looks forward to working with Avant Realty and other real estate firms to ensure compliance with fair housing laws,” said Daniel Corbitt, Associate Director of HOME. “In Western New York and throughout our state, homeownership offers an unparalleled opportunity to attain security, stability, and intergenerational wealth. However, significant racial disparities in homeownership persist. We all have a responsibility to eliminate racially discriminatory policies and practices in the residential real estate market, thereby creating a more vibrant and just community for everyone.”

“We are pleased to have reached a settlement with Avant Realty,” said Morenike Fajana, Senior Counsel at LDF. “At LDF, we know that where you live matters and impacts every aspect of your life – from access to good jobs and high-performing schools, to safe streets and access to quality health care. We are grateful to HOME for their years of service dedicated to fair housing, especially the work done to root out differential treatment that forces Black people into under-resourced neighborhoods and blocks them from economic opportunity. Today is a win for the Black residents of Buffalo.”

“While segregation remains an entrenched problem in the Buffalo region, today’s settlement is a step in the right direction,” said Elizabeth Caldwell, Assistant Counsel at LDF. “We are thankful to HOME for their commitment to fighting housing discrimination and their work to uncover and combat racial steering. LDF will continue to work alongside HOME and others to help families find suitable housing, free from discrimination.”

The LDF is the country’s first and foremost civil and human rights law firm. It was founded in 1940 under the leadership of Thurgood Marshall, who subsequently became the first African-American U.S. Supreme Court Justice.

Read the April 4, 2025 LDF article.

Fair Housing Advocates Reach Agreement to Expand Accessible Housing Opportunities for Residents with Disabilities to Over 5,300 Apartments in the South

The National Fair Housing Alliance (NFHA) and the Tennessee Fair Housing Council (TFHC) have announced an agreement with Gross Residential Properties that will expand accessible rental housing opportunities in Alabama, North Carolina, South Carolina, and Tennessee. The agreement covers 13 properties containing more than 5,300 apartments in these states. Under the settlement, Gross Residential has committed to making changes at 13 apartment complexes to ensure they are accessible to people with disabilities.

The agreement comes after a joint investigation by NFHA and TFHC that led to a housing discrimination complaint filed with the U.S. Department of Housing and Urban Development (HUD) in March 2024. Through HUD’s complaint conciliation process, the parties quickly and efficiently reached an agreement that will notably increase accessible housing for persons with disabilities. Under the Fair Housing Act, it is unlawful for a housing provider to refuse to make reasonable accommodations necessary to provide persons with disabilities an equal opportunity to use and fully enjoy their homes.

Under the agreement, Gross Residential will: (1) Comply with the Fair Housing Act, including its accessibility provisions; (2) Make accessibility modifications to the 13 properties named in the complaint;(3) Notify residents in affected apartments of their right to request a modification to remove the below-sink cabinetry; (4) Develop no new multifamily units that include a kitchen design with an angled sink as depicted in the complaint; (5) Require staff to undergo training about building accessible apartments and the requirements of the Fair Housing Act; (6) Require an independent inspection of the accessibility modifications at the 13 apartment complexes and certify that they meet the accessibility standards; (7) Include in all residential leases a statement of Gross Residential’s commitment to fair housing laws and its policy to provide reasonable accommodations to applicants and residents who have disabilities; and (8) Pay $525,000 in damages and attorneys’ fees.

“People with disabilities in Middle Tennessee will have more housing options as a result of this agreement,” said Martie Lafferty, TFHC’s Executive Director. “Searching for a new place to live is stressful for everyone. Imagine finding an apartment you like and realizing you can’t use the kitchen because there’s not enough turning space for your wheelchair. We appreciate Gross Residential’s willingness to work with TFHC and NFHA to identify solutions that ensure people with disabilities can use and enjoy their apartment and the common areas of their housing community.”

NFHA and TFHC were represented by Sara Pratt, Esq. and Nick Abbott, Esq., of the noted civil rights law firm Relman Colfax PLLC. NFHA was represented by Morgan Williams, NFHA’s General Counsel, and Scott Chang, Senior Counsel on NFHA’s Enforcement Team. TFHC was represented by Martie Lafferty, TFHC’s Executive Director, and William Cox, TFHC’s Staff Attorney.

A copy of the Complaint is here.

A copy of Read the HUD Conciliation Agreement is here.

Federal Court Advances Landmark Housing Discrimination Case Against Deutsche Bank, Ocwen, and Altisource to Trial

 

On April 1, 2025, the National Fair Housing Alliance (NFHA) and 19 fair housing organizations achieved a significant legal victory as a federal district court in Chicago denied the defendants’ motions for summary judgment in a critical 2018 housing discrimination lawsuit, National Fair Housing Alliance, et al. v. Deutsche Bank National Trust, et al. This decision now paves the way for the lawsuit against Deutsche Bank National Trust Company, Deutsche Bank Trust Company Americas, Ocwen Financial Corp., and Altisource Portfolio Solutions, Inc. to proceed to trial. Plaintiffs allege that these defendants engaged in discriminatory practices by failing to uphold their duty to maintain and market foreclosed properties in Black and Latino neighborhoods to the same standards as those in predominantly white areas, in violation of the federal Fair Housing Act (FHA).

The lawsuit, filed in 2018 by NFHA and 19 other fair housing organizations, builds on an extensive 2010-2017 investigation in the wake of the mortgage foreclosure crisis. Evidence in the complaint shows stark inequities. The investigation found that homes in white neighborhoods were methodically maintained and marketed, while properties in Black and Latino neighborhoods were left in severe disrepair, contributing to safety hazards, declining property values, and worsening economic conditions in historically underserved communities. Plaintiffs presented evidence the Court has permitted to be presented at trial that these disparities in maintenance were attributable to neighborhood racial composition, not to non-racial factors, and that race played a statistically significant role in the differential treatment.

The over-120 page ruling, delivered by U.S. District Judge Manish S. Shah, (N.D. Illinois) allows Plaintiffs’ disparate treatment and disparate impact claims to move forward against all defendants. The Court cited evidence of mortgage servicers Ocwen and Altisource abdicating their obligations to maintain properties, and a host of policies that may be shown at trial to cause negative outcomes in communities of color, compared to other neighborhoods. The Court held that trustees like Deutsche Bank can be held liable under the FHA for the discriminatory activities of their mortgage servicers. Judge Shah also recognized that plaintiffs had established sufficient standing to pursue the FHA case in federal court, finding that the critical services that plaintiffs offer were “sufficient to demonstrate that defendants’ REO conduct perceptibly impaired the organizations’ core activities.”

“This is a pivotal decision - not only for NFHA and our partners but for underserved communities across the country that have long endured neglect and inequitable treatment,” said Lisa Rice, President and CEO of NFHA. “This case isn’t just about holding Deutsche Bank, Ocwen, and Altisource accountable. It’s about beginning to repair some of the harm that continues to ripple through communities as a result of discriminatory housing practices. This decision carries the promise of hope for neighborhoods that were disproportionately targeted for predatory loans and negatively impacted by the foreclosure crisis. It’s a clear step forward in the fight for equity and justice.” Plaintiffs are represented by Soule, Bradtke & Lambert, Relman Colfax PLLC, and the Dane Law Firm.

Deutsche Bank in June 2013 settled a lawsuit with the city of Los Angeles for $10 million after it was accused of allowing hundreds of foreclosed properties under its ownership to fall into slum conditions, leading to the destabilization of whole communities.

The full order can be viewed here.

Read the April 3, 2025 NFHA press release.

Read the February 1, 2018 Banker & Tradesman article.

More Buffalonians to be Protected from Housing Discrimination with New Legislation

 

Fair Housing law expansions were passed in April 2025 to guarantee protection for more citizens of Buffalo, New York, with minority status, according to a spokesperson with the Buffalo Common Council. The laws now cover those with disabilities, those apart of the LGBTQ+ community, those from other countries, and those who require housing vouchers or public assistance. Race, religion, and national identity are already protected by the Fair Housing Act of 1968. The legislation was passed on April 1st, the first day of National Fair Housing Month.

A recent study by the Partnership for the Public Good of Buffalo - A City Divided: A Brief Study of the History of Segregation in Buffalo - found that Buffalo-Niagara is one of the most racially segregated metropolitan regions in the nation. While racial segregation has declined slightly in recent years, economic segregation has increased, resulting in neighborhood conditions growing worse – not better – for most people of color in the area. The metro area itself is ranked sixth most segregated in the nation on the white-black index, and twenty-first most segregated on the white-Hispanic index (“Segregation Results from 2010,” Census Scope, March 18, 2012, http://censusscope.org/dev/content/segregation-results2010).

Redlining’s detrimental and exclusionary consequences remained prevalent in 2024, causing myriad health, environmental, housing, and economic disparities throughout Buffalo’s East Side (James Coughlin, "City of Redlined Neighbors: Redlining in Past and Present Buffalo," Peace Chronicle: The Magazine of the Peace and Justice Studies Association (Spring, 2024).

This critical legislation will give the City of Buffalo’s Fair Housing law teeth to ensure that everyone in Buffalo is treated equally when purchasing or renting a home,” said Fair Housing Officer Harold Cardwell, Jr. “The ability to find safe and sustainable housing of your choice is an inalienable human right.” Realtors and landlords in the city will be required to make “reasonable” accommodations for those with disabilities, including equal housing language and symbols. Exclusions will be removed for those who own fewer than 20 housing units and fines will be increased for first-time and repeat violations. More time will be given to resolve accusations.

“The ugly legacy of housing discrimination can be seen in cities across the nation, and we see its toxic aftermath in the disparities that impact black communities and low-income households here in the City of Buffalo,” said Majority Leader Leah Halton-Pope. “With this legislation, we will help ensure that no Buffalonian is denied fair access to housing simply for being who they are.”

Read the April 16, 2025 Buffalo WIVB Channel 4 article.

Partnership for the Public Good

Thurgood Marshall Institute Releases Housing Justice Publications in Honor of National Fair Housing Month

To commemorate the 57th anniversary of the passage of the National Fair Housing Act, the Legal Defense Fund’s (LDF) is releasing two housing justice publications. The first publication – Barred from Housing: The Discriminatory Impact of Criminal History Restrictions in Tenant Screening – highlights how public and private housing providers often use overly broad and restrictive criminal record policies that limit housing opportunities. According to the report, these policies may violate the Fair Housing Act by having unjustified discriminatory effects on Black tenants.

The second publication is a podcast episode entitled “The Promises and Threats of Algorithms in Housing,” which details the increased use of algorithms and predictive technologies in the housing industry. Guests on the episode, including Maryland Legal Aid, argue that while algorithmic technologies have the potential to increase equity by removing human bias from decision-making, there is very little transparency and oversight over these tools and there is clear evidence that these technologies are replicating and amplifying existing biases.

“Access to safe, affordable housing is critical to the fight for a stronger, more equitable, and more prosperous country,” said Karla McKanders, Director of the Thurgood Marshall Institute (TMI). “At a time when the administration is undermining fair housing policies and cutting funds for various programs meant to remedy housing discrimination, our publications draw attention to the prevalence of housing discrimination and the continued need for essential housing protections to ensure all communities have access to safe, dignified, and affordable housing. We are proud to work alongside advocates from across the country to make the dream of fair housing a reality for those who are most often denied it.”

These publications are an extension of the TMI’s efforts to advance LDF’s mission of ensuring equitable access to housing for Black families and communities. To learn more about housing discrimination and the work being done to fight it, view The Black-White Racial Wealth Gap and Bad Housing Blues: Discrimination in the Housing Choice Voucher Program in Memphis, Tennessee.

Founded in 1940, the Legal Defense Fund (LDF) is the nation’s first civil rights law organization. LDF’s TMI is a multi-disciplinary and collaborative hub within LDF that launches targeted campaigns and undertakes innovative research to shape the civil rights narrative. 

Read the April 15, 2025 Legal Defense Fund article.