JUSTICE, PROPERTY DEVELOPER AGREE TO SETTLEMENT RELATED TO ACCESSIBILITY BARRIERS

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, December 19, 2013

Justice Department Announces Fair Housing Settlement with W.V. Developer
The Justice Department announced today that developer Douglas Pauley and entities affiliated with him have agreed to pay $110,000 and make all retrofits required to remove accessibility barriers at 30 apartment complexes, involving more than 750 units, in West Virginia that were developed through the federal government’s Low-Income Housing Tax Credit program.   The parties’ agreement will settle the United States’ claims that defendants violated the Fair Housing Act by building the complexes with a variety of features that made them inaccessible to persons with disabilities.

Under the terms of the parties’ agreement, Pauley, as general partner of 30 limited liability partnerships, must take extensive actions to make the complexes accessible to persons with disabilities.   These corrective actions include replacing cabinets in bathrooms and kitchens to provide sufficient room for wheelchair users, reducing door threshold heights, replacing excessively sloped portions of sidewalks and installing properly sloped curb ramps that allow persons with disabilities access to sidewalks from the parking areas.   In addition, the defendants will pay $100,000 to establish a settlement fund for the purpose of compensating disabled individuals impacted by the accessibility violations and $10,000 as a civil penalty.

“The Fair Housing Act protects the rights of persons with disabilities to have equal opportunities to enjoy the housing of their choice,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division .  “The Justice Department is strongly committed to the enforcement of the fair housing laws.   It is especially important that multi-family properties developed using federal programs are designed to provide accessible and affordable housing to those who need it the most.”

“When developers and building professionals fail to design and construct homes with the required accessibility features, we will vigorously enforce the law," said U.S. Attorney R. Booth Goodwin for the Southern District of West Virginia.

Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement.  Notices of the settlement and a list of subject properties will be published in the Charleston Gazette.

APARTMENT COMPLEX SETTLES DISCRIMINATION OF DISABLED WITH ANIMAL ASSISTANTS CASE

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, October 28, 2013
Justice Department Obtains $167,500 in Discrimination Settlement with Reno, Nev., Apartment Complex

The Justice Department announced today that the U.S. District Court of Nevada has approved a settlement in which the owners and operators of Rosewood Park Apartments, a 902 unit apartment complex in Reno, Nev., will pay $167,000 to resolve a lawsuit alleging discrimination against persons with disabilities who use assistance animals.

Under the agreement, the defendants in United States v. Rosewood Park LLC et al., will pay a total of $127,500 to a family that was not allowed to move into the complex because one of the members of the household used an assistance animal and to the Silver State Fair Housing Council, a non-profit Nevada organization that assisted the family and conducted testing to investigate the rental practices at Rosewood Park.  The defendants will also pay an additional $25,000 to compensate any other persons harmed by the defendants’ discriminatory policies, who are identified through a process established by the agreement, and will pay $15,000 to the government in civil penalties.  The agreement also requires that defendants adopt and maintain a new policy regarding assistance animals, provide non-discrimination training to their employees and agree to record keeping and monitoring requirements for the terms of the agreement.  The agreement has been approved by the U.S. District Court of Nevada, and takes the form of a consent order that can be enforced by the court.

The department’s complaint had alleged that the owners, employees and management company of Rosewood Park Apartments violated the Fair Housing Act by limiting individuals with certain assistance animals to a particular section of Rosewood Park Apartments; subjecting such individuals to pet fees; requiring assistance animals to be licensed or certified; and barring companion or uncertified service dogs altogether.  The case began when a family that had sought housing at Rosewood Park and the Silver State Fair Housing Council filed complaints with the Department of Housing and Urban Development (HUD).   HUD investigated the complaint, issued a charge of discrimination and referred the matter to the Department of Justice.

“The Fair Housing Act ensures that persons with disabilities searching for a home are protected from discrimination,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division.  “The Justice Department will continue to vigorously protect the civil rights of persons with disabilities in Nevada and across the country.”

“Persons who think they have been discriminated against in housing issues should not hesitate to file a report with HUD,” said U.S. Attorney Bogden.  “The U.S. Attorney’s Office, as part of the U.S. Department of Justice, works with HUD to ensure that companies that are treating disabled persons unfairly are punished, and that they adopt policies to prevent further discrimination.”

“Assistance animals play a vital role in helping people with disabilities conduct everyday activities and fully enjoy their homes,” said Bryan Greene, HUD's Acting Assistant Secretary for Fair Housing and Equal Opportunity.  “HUD and DOJ will continue to enforce the Fair Housing Act's protections and ensure that housing providers do not illegally limit assistance animals.”

Fighting illegal housing discrimination is a top priority of the Justice Department.  The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.

JUSTICE REACHES FAIR HOUSING SETTLEMENT WITH PROPERTY MANAGEMENT COMPANY, HOA

FROM:  U.S. DEPARTMENT OF JUSTICE 

Tuesday, August 13, 2013

Justice Department Reaches Settlement with Homeowners Association and Property Management Company in Fair Housing Lawsuit Involving Occupancy Limits

The Justice Department announced today that the Townhomes of Kings Lake HOA Inc. (HOA) and Vanguard Management Group Inc. have agreed to pay $150,000 to settle a lawsuit alleging violations of the Fair Housing Act (FHA).  The lawsuit alleged that the HOA adopted and both defendants enforced occupancy limits that discriminated against families with children at the Townhomes of Kings Lake, a 249-townhome community in Gibsonton, Fla.

Under the proposed consent decree, which must still be approved by the U.S. District Court for the Middle District of Florida, the defendants will pay $45,000 to the family that initiated the original complaint filed with the U.S. Department of Housing and Urban Development (HUD), $85,000 into a victim fund to compensate other aggrieved families, and $20,000 to the United States as a civil penalty.  In addition, the proposed consent decree prohibits the defendants from discriminating in the future against families with children and requires the defendants to receive training on the requirements of the FHA.  In January 2013, while the lawsuit was pending, the HOA modified its occupancy limits to permit four occupants in 2-bedroom townhomes, six occupants in 3-bedroom townhomes, and eight occupants in 4-bedroom townhomes.

“The Fair Housing Act ensures that families with children are not denied their housing rights based on discriminatory occupancy policies,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously enforce fair housing laws that protect the rights of families with children.”

The lawsuit, filed in October 2012, arose from a complaint filed with HUD by a family with six children that was living at the Townhomes of Kings Lake.  After the family moved into their 4-bedroom townhome, the defendants indicated there was a problem with the number of people living in the home and threatened to evict the family.  The family eventually moved out of the Kings Lake community.  After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department.  The lawsuit alleged that the defendants violated the family’s rights, that the restrictive occupancy policies discriminated against other families with children, and that the defendants engaged in a pattern or practice of discrimination or denied rights protected by the FHA to a group of persons.

“Twenty-plus years of HUD guidance and cases have put housing providers on notice that occupancy standards which unfairly limit or exclude families with children violate the Fair Housing Act,” said Bryan Greene, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Department of Justice are committed to making sure that all people have equal access to the housing for which they financially qualify.”

JUSTICE DEPT. ANNOUNCES SETTLEMENT OF DISCRIMINATION CASE INVOLVING PROSPECTIVE SOMALI RENTERS

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, August 13, 2013
Justice Department Resolves Lawsuit Alleging Discrimination on Basis of Race and National Origin in Minneapolis

The Justice Department today announced a settlement of its lawsuit alleging that Highland Management Group Inc., Edina Park Apartments LLC, and Amy Koch violated the Fair Housing Act (FHA) by discriminating against Somali prospective renters at Edina Park Apartments in Edina, Minn. a suburb of Minneapolis.  After filing the complaint earlier today, the department submitted the settlement to U.S. District Court Judge Susan R. Nelson, in the form of a proposed consent decree.

The case originated based on evidence generated by the department’s Fair Housing Testing Program, in which individuals pose as prospective renters to gather information about possible discriminatory practices.  The testing uncovered evidence that Amy Koch, who was the then property manager at Edina Park Apartments, showed white testers apartments when they walked in while she told Somali testers they had to make an appointment to see an apartment the next day.  She also failed to tell Somali testers about certain apartments becoming available that she mentioned to white testers.  Amy Koch was an employee of Highland Management Group, Inc.

“Treating people differently because of their race or national origin when they are looking for a place to live is a fundamental affront to American values,” said Acting Assistant Attorney General Jocelyn Samuels. “This settlement demonstrates that the Civil Rights Division Housing Testing Program is an important tool in combating discrimination.”

Under the settlement, Highland Management Group Inc. and Edina Park Apartments must pay $30,000 to the government as a civil penalty.  The settlement also requires Highland Management Group, Inc. and Edina Park Apartments to maintain a nondiscrimination policy, provide employees with training on the requirements of the Fair Housing Act and provide periodic reports to the government.

U.S. Attorney B. Todd Jones said, “Everyone has the right to expect equal treatment under the law when searching for housing. The U.S. Department of Justice and the U.S. Attorney’s Office will work tirelessly to ensure that all people are treated fairly when attempting to secure housing for themselves and their families. It is what the good citizens of Minnesota expect and deserve.”

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.

COMPANY TO PAY $10.5 MILLION TO RESOLVE DISABILITY-BASED HOUSING DISCRIMINATION LAWSUIT

FROM:  U.S. JUSTICE DEPARTMENT
Monday, June 25, 2012
Justice Department Obtains Landmark $10.5 Million Settlement to Resolve Disability-Based Housing Discrimination Lawsuit
WASHINGTON – The Justice Department today announced its largest-ever disability-based housing discrimination settlement fund to resolve allegations that JPI Construction L.P. and six other JPI entities (collectively “JPI”) based in Irving, Texas, discriminated on the basis of disability in the design and construction of multifamily housing complexes throughout the United States.

Under the settlement, which was approved today by the U.S. District Court for the Northern District of Texas, JPI will pay $10,250,000 into an accessibility fund to provide retrofits at properties built by JPI and to increase the stock of accessible housing in the communities where these properties are located.  The settlement also requires JPI to pay a $250,000 civil penalty.  This is the largest civil penalty the Justice Department has obtained in any Fair Housing Act case.

“Today’s historic settlement demonstrates the Justice Department’s commitment to protecting the fair housing rights of persons with disabilities,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.  “Builders of multifamily housing must consider accessibility at the outset, or they risk significantly greater expense to retrofit properties.  As a result of this settlement, multifamily housing complexes will be retrofitted to comply with the Fair Housing Act and the Americans with Disabilities Act, and persons with physical disabilities will be afforded an equal opportunity to live in and visit these properties.”

“Equal access to housing for persons with disabilities is an important right protected by federal law,” said U.S. Attorney for the Northern District of Texas Sarah R. Saldaña.  “This settlement will help eliminate barriers and send a clear message that disability discrimination will not be tolerated.  Disabled residents should know that this district remains committed to protecting their fair housing rights.”

The lawsuit was filed in March 2009, after the Justice Department conducted an investigation and found accessibility barriers at various JPI properties.  Since 1991, JPI and its affiliates built 210 multifamily properties in 26 states and the District of Columbia; trial involving 32 of JPI’s properties was scheduled to begin July 9, 2012.
In addition to the $10.5 million payment, the consent order prohibits JPI from discriminating on the basis of disability in the future and from interfering with or preventing the retrofitting that will take place at the JPI properties.  Although JPI is no longer in the multifamily development and construction business, if JPI reenters the business, it is required to design and construct covered multifamily dwellings to fully comply with the requirements of the Fair Housing Act and the Americans with Disabilities Act.

The JPI entities that are responsible for paying the settlement amount are: JPI Construction L.P.; Multifamily Construction L.L.C.; JPI Apartment Development L.P., dba JPI Campus Quarters; Lifestyle Apartment Development Service L.L.C.; Jefferson Bend L.P., dba Jefferson at Mission Gate Apartments; Jefferson Lake Creek L.P., dba Jefferson Center Apartments; and Apartment Community Realty L.L.C.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  Individuals who believe that they may have been victims of housing discrimination should call the Housing Discrimination Tip Line (1-800-896-7743) or email the Justice Department at fairhousing@usdoj.gov.  Such persons may also contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.

Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.

SUNTRUST MORTGAGE AND JUSTICE REACH SETTLEMENT ON ALLEGED LENDING DISCRIMINATION

FROM:  U.S. DEPARTMENT OF JUSTICE
Thursday, May 31, 2012
Justice Department Reaches $21 Million Settlement to Resolve Allegations of Lending Discrimination by Suntrust Mortgage Borrowers Were Charged Higher Fees Based on Their Race or National Origin in 2005-2009 Before the Company Implemented New Policies
WASHINGTON – SunTrust Mortgage Inc., the mortgage lending subsidiary of the nation’s 11th-largest commercial bank, has agreed to pay $21 million to resolve a lawsuit by the Department of Justice that it engaged in a pattern or practice of discrimination that increased loan prices for many of the qualified African-American and Hispanic borrowers who obtained loans between 2005 and 2009 through SunTrust Mortgage’s regional retail offices and national network of mortgage brokers.
The settlement also requires SunTrust Mortgage to continue using policies and practices it adopted to prevent discrimination following the time period at issue in the lawsuit.

The settlement, which is subject to court approval, was filed today in federal court in Richmond, Va., where SunTrust Mortgage is headquartered.  The settlement comes after a two-and-a-half-year investigation by the Department of Justice, which included reviewing internal company documents and data on more than 850,000 residential mortgage loans SunTrust Mortgage originated between 2005 and 2009.  SunTrust Mortgage cooperated fully with the Justice Department’s investigation into its lending practices and agreed to settle this matter without contested litigation.

“Today’s settlement demonstrates that the Department of Justice takes seriously its responsibility to investigate mortgage lending practices during the mortgage boom years and, when the evidence shows the law was broken, to obtain compensation for victims of illegal conduct,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.  “We will, however, work constructively with responsible lenders like SunTrust Mortgage that are willing to take the necessary steps to ensure equal credit opportunity for all borrowers.  We commend SunTrust Mortgage for taking action to implement strong fair lending policies even before they knew the full results of our investigation.”

The settlement was filed in conjunction with the department’s complaint that alleges SunTrust Mortgage violated the Fair Housing Act and Equal Credit Opportunity Act by charging more than 20,000 African-American and Hispanic borrowers higher fees and interest rates than non-Hispanic white borrowers, not based on borrower risk, but because of their race or national origin.  Specifically, the allegations involve loans made to African-American borrowers between 2005 and 2008 through the more than 200 retail offices directly operated by SunTrust Mortgage in the Southeastern and Mid-Atlantic portions of the United States.  The allegations also involve loans made to African-American and Hispanic borrowers between 2005 and 2009 through SunTrust Mortgage’s national network of mortgage brokers.

“Racial and ethnic bias have no place in the lending market,” said Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia. “We are pleased that SunTrust Mortgage is taking steps to compensate the victims and to ensure fair and equal access to credit in the future.”

SunTrust Mortgage’s business practice during the time periods covered by the lawsuit allowed its loan officers and mortgage brokers to vary a loan’s interest rate and other fees from the price it set based on the borrower’s objective credit-related factors.  This subjective and unguided pricing discretion resulted in African-American and Hispanic borrowers paying more.

Prior to the settlement, SunTrust Mortgage had implemented policies that substantially reduced the discretion of its loan officers and mortgage brokers to vary a loan’s interest rate and other fees from the price it set based on the borrower’s objective credit-related factors, and that required the reasons for variations to be documented and reviewed by a supervisor.  Those policies, operating in concert with rules imposed by the Federal Reserve in April 2011 and incorporated into the settlement, restrict compensating loan officers and mortgage brokers based on the terms or conditions of a particular loan.  Today’s settlement requires SunTrust Mortgage to keep its improved policies in place for at least the next three years, as well as continuing to monitor its lending for signs of discrimination and providing monitoring reports to the United States.

The department’s investigation into SunTrust Mortgage’s lending practices began after a referral by the Board of Governors of the Federal Reserve to the Justice Department’s Civil Rights Division in December 2009 for potential patterns or practices of discrimination.  SunTrust Mortgage’s parent company, Atlanta-based SunTrust Bank, is a member of the Federal Reserve System, and one of the nation’s largest regional banks with $178 billion in assets and more than 1,600 branches in seven states and the District of Columbia.

“Racial or other illegal discrimination has no place in our credit markets,” said Federal Reserve Board Governor Elizabeth A. Duke.  “We are pleased that this settlement is designed to ensure fair access to credit.”

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF).  President Obama established the interagency FFETF to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.   The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.   The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

The proceeds of the settlement will be used to compensate the victims of SunTrust Mortgage’s discrimination, who were located in 34 states and the District of Columbia when the discrimination occurred.  The proposed settlement provides for an independent administrator to contact and distribute payments of compensation at no cost to borrowers whom the Justice Department identifies as victims of SunTrust Mortgage’s discrimination.  Borrowers who are eligible for compensation from the settlement will be contacted by the administrator.

DOJ ALLEGES GFI MORTGAGE BANKERS CHARGED HIGHER RATES AND FEES TO MINORITIES

FROM:  U.S. DEPARTMENT OF JUSTICE
Monday, April 2, 2012
Justice Department Alleges GFI Mortgage Bankers Engaged in Illegal Lending Discrimination Complaint Alleges New York-Based Company Charged Higher Interest Rates and Fees to African-American and Hispanic Borrowers
WASHINGTON – The Department of Justice and the U.S. Attorney’s Office for the Southern District of New York filed a lawsuit alleging that GFI Mortgage Bankers Inc., a mortgage banker with operations in seven states, violated federal fair lending laws by charging African-American and Hispanic borrowers higher interest rates and fees on home mortgage loans because of their race or national origin, not based on their creditworthiness.

The complaint, filed today in the Southern District of New York under the federal Fair Housing Act and Equal Credit Opportunity Act, alleges that GFI engaged in a pattern or practice of discrimination on the basis of race and national origin by charging African-American and Hispanic borrowers higher interest rates and fees on home mortgage loans compared to similarly-situated white borrowers.  The Department of Justice and the U.S. Attorney’s Office for the Southern District of New York investigated and filed the lawsuit jointly.

“Charging  people more for home loans simply because of their race or national origin – as we have alleged in our complaint against GFI – is illegal. The Justice Department will act aggressively to ensure that all people have equal access to credit and a level playing field ,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.  “For that reason, vigorous enforcement of fair lending laws remains a top priority.”
U.S. Attorney for the Southern District of New York Preet Bharara said, “As the lawsuit we filed today alleges, discrimination still exists in certain quarters and it has profound consequences for the victims.  At a time when so many American homeowners of all races and nationalities are struggling to make their mortgage payments, it is unacceptable that, as we allege, the impact of GFI Mortgage’s business practices resulted in its African-American and Hispanic customers paying higher fees and interest rates for their residential mortgages.  As today’s suit demonstrates, this type of discriminatory action will not be tolerated.  We will continue to work to ensure that fair lending laws are enforced throughout the district.”

“HUD and the Justice Department work together to end lending discrimination in America.  This case and others nationwide demonstrate our commitment to pursue lenders if they violate the Fair Housing Act and seek relief for discrimination victims,” said Department of Housing and Urban Development (HUD) Assistant Secretary for Fair Housing and Equal Opportunity John Trasviña.

From 2005 through at least 2009, GFI charged higher loan prices to African-American and Hispanic borrowers than it charged to similarly-situated white borrowers by charging higher interest rates and fees for home mortgage loans.  For example, an African-American borrower who took out a home mortgage loan in 2007 paid on average approximately $7,500 more over the first four years of the loan than a similarly-situated white borrower.  For a Hispanic borrower, the difference was approximately $5,600 more over the first four years of the loan than a similarly-situated white borrower.  The disparities, based on race or national origin, are statistically significant, and are unrelated to credit risk or loan characteristic.

During the period when the discrimination occurred, GFI had a policy or practice of allowing and encouraging its loan officers in New York and New Jersey to promote loan products, price loans and charge fees in a manner that was unrelated to credit risk or loan characteristics.  GFI knew that its loan officers priced loans in ways unrelated to a borrower’s creditworthiness, resulting in thousands of dollars in overcharges for African-American and Hispanic borrowers based on their race or national origin.  By providing its loan officers a substantial percentage of the profits generated on each loan, GFI’s compensation scheme provided strong financial incentives to loan officers to price their loan products in a discriminatory manner.  Moreover, GFI failed to supervise, train, or adequately monitor its loan officers to ensure that they were pricing loans in a non-discriminatory manner.

During the period when the discrimination occurred, the number of home mortgage loans issued by GFI increased from 974 in 2005 to 2,270 in 2009.  At the same time, GFI’s revenue from its home mortgage loan services increased from $305 million in 2005 to $768 million in 2009.

This case resulted from a referral by HUD to the Justice Department’s Civil Rights Division in 2010.

The Civil Rights Division and other agencies involved in this matter are part of the Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
African-American and Hispanic borrowers who received GFI loans since 2005, former employees of GFI or any other individuals with information relevant to this lawsuit are encouraged to contact the U.S. Department of Justice at 1-800-896-7743, mailbox 9992, or at:
Chief, Civil Rights Unit
U.S. Attorney’s Office, S.D.N.Y.
86 Chambers Street, 3rd Floor
New York, NY 10007