Fair Housing Act

HUD issues final regulations defining disparate impact claims under the Fair Housing Act

/ Antidiscrimination Law, Fair Housing Act, Real Estate Transactions

The Department of Housing & Urban Development (HUD) has issued final regulations defining the standards to make a claim that a neutral policy has a disparate impact on a protected group in a manner that constitutes unlawful discrimination under the federal Fair Housing Act, 42 U.S.C. §3601 et seq. The regulations are at 24 C.F.R. 100.500 and can be found here. The rule affirms that disparate impact claims are available under the Fair Housing Act and identifies an approach to proving them to respond to the variation that exists among Circuits on what the legal test is for disparate impact in this area. Here is the test: 1. Plaintiff must show a discriminatory effect either because defendant’s policies or actions result in a disparate impact on a protected group or because those policies or actions promote segregation. 2. Defendant then has the burden to showthat  its practice is necessary to achieve …

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Rhode Island passes Homeless Bill of Rights

/ Antidiscrimination Law, Fair Housing Act, Personal Property, Trespass

The Rhode Island legislature passed a statute likely to be signed by the Governor called the “Homeless Bill of Rights.” The act amends Rhode Island’s fair housing law by adding “housing status” to the list of prohibited kinds of discrimination and defines housing status to mean “the status of having or not having a fixed or regular residence, including the status of living on the streets or in a homeless shelter or similar temporary residence.” It guarantees access to public spaces (including sidewalks and public buildings) on the same terms as others and grants a certain amount of protection for the personal property of the homeless. The law also ensures that public services are available to homeless persons. The bill is S 2052 Substitute B (2012) and it will amend R.I. Gen. Laws ch. 34 by adding §§34-37.1-1 to 34-37.1-5 and amending §§34-37-1 and 34-37-3.

$2 million settlement agreement by landlord & building superintendent for systematic sexual harassment of tenants

/ Antidiscrimination Law, Fair Housing Act, Leaseholds, Trespass

On May 8, 2012, the U.S. Attorney’s office in Manhattan announced a $2 million settlement by a landlord, his building superintendent and the superintendent’s son to pay fines to tenants who were sexually harassed by the superintendent. The building superintendent was a convicted sex offender who served 14 years in prison for molesting or raping 3 girls and a woman before being hired by the landlord to run three buildings. The superintendent would enter women’s apartments while drunk and demand sex, retaliating when he did not get his way. Both the landlord and the superintendent are also barred by the agreement from owning or managing occupied properties. read article

Ninth Circuit holds that the Fair Housing Act does not regulate roommate choices or advertisements

/ Antidiscrimination Law, Fair Housing Act

The Ninth Circuit ruled in Fair Housing Council of San Fernando Valley v. Roommate, LLC, 2012 U.S. App. LEXIS 1971 (9th Cir. 2012), that the Fair Housing does not regulate roommate choices or advertisements expressing preferences with respect to roommates, dismissing a claim against Roommate.com, a website that allowed individuals to place ads stating preferences based on sex, sexual orientation, religion, and familial status in connection with roommate searches. The opinion by Judge Alex Kozinski noted that the Fair Housing Act regulates “dwellings” which are defined to include “any building, structure, or portion thereof which is occupied as, or designed or intended for occupancy as, a residence by one or more families.” 42 U.S.C. §3602(b)(emphasis added by this editor). Despite the “or portion thereof” language, the court noted that the constitution protects rights of intimate association and that it would be unconstitutional to restrict roommate choices so the statute should be read to preclude …

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Court holds that an Alabama immigration law violates the Fair Housing Act

/ Antidiscrimination Law, Fair Housing Act

A recent Alabama immigration statute was held preempted by the Fair Housing Act because it required many mobile home owners to pay for a government-issued decal while prohibiting undocumented residents from making payments to government officials. In Central Alabama Fair Housing Center v. Magee, 2011 U.S. Dist. LEXIS 142788 (D. Ala. 2011), the federal District Court judge found a violation of the federal fair housing law because there was sufficient evidence of discriminatory intent by legislators against Latino residents (including legal residents) and because the law had a disparate impact on the Latino population without any legitimate government justification. Because the law made it illegal to drive or possess a mobile home without a decal and registration and because it was illegal for undocumented residents to obtain the decal, the law effectively made such persons homeless. The court found the law preempted by federal immigration laws but also found a fair …

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Third Circuit finds prima facie evidence of disparate impact from municipal redevelopment plan

/ Antidiscrimination Law, Fair Housing Act

The Third Circuit has ruled in Mount Holly Gardens Citizens in Action Inc. v. Mount Holly, N.J., 2011 U.S. App. LEXIS 18840 (3d Cir. 2011) that plaintiffs presented sufficient statistical evidence to constitute a prima facie case that displacement of low-income residents from an area slated for redevelopment would have a disparate impact on African American and Latino residents. The court clarified that no evidence of intent to discriminate was needed to bring a disparate impact claim, clarifying ambiguities on this score created by the Third Circuit’s earlier decision, Resident Advisory Bd. v. Rizzo, 564 F.2d 126 (3d Cir. 1977). The court accepted the town’s justification that its redevelopment plan was geared to remove blight but held that the town had a duty to show that no less discriminatory alternative could achieve that goal.

Massachusetts Attorney General settles lawsuit with subprime mortgage lender, requiring $115 million of loan modifications

/ Antidiscrimination Law, Consumer Protection, Fair Housing Act, Mortgages, Real Estate Transactions

Attorney General Martha Coakley announced that the Commonwealth of Massachusetts settled a lawsuit with a subprime mortgage lender that originated subprime mortgages it knew were likely to fail and which not only targeted African American and Latino borrowers but gave its employees discretion to charge higher fees to such borrowers. The company will pay a penalty of almost $10 million to the Commonwealth and will direct its mortgage servicer to modify $115 million in loans either by writing down the principal balance of lowering interest rates. read article The settlement is based on the legal ruling in the earlier case of Commonwealth v. Fremont Inv. & Loan, 897 N.E.2d 548 (Mass. 2008), which held that it might violate the state consumer protection act to market mortgages that were almost certain to end in foreclosure.

Eighth Circuit upholds finding that landlord sexually harassed a tenant in violation of the Fair Housing Act but affirms the trial court’s reduction of the jury’s punitive damages award

/ Antidiscrimination Law, Due Process, Fair Housing Act, Leaseholds

In Quigley v. Winter, 598 F.3d 938 (8th Cir. 2010),the Eighth Circuit upheld a trial court ruling that landlord sexually harassed tenant in violation of the Fair Housing Act (FHA), but it affirmed the  trial court’s reduction of the jury’s punitive damages award. The jury awarded $13,685 in compensatory damages and $250,000 in punitive damages. The trial court reduced the punitive damages award to $20,527.50. The landlord engaged in a variety of inappropriate behavior, rubbing tenant’s arm, standing close to her and rubbing his genital area, following tenant and her sister into the bedroom while conducting an inspection and they were in their pajamas and then refusing to leave until asked to do so three times, calling tenant while drunk at 2:30 or 3:00 am.  The Eighth Circuit held that a claim for hostile housing environment created by sexual harassment is actionable under the FHA, that there was sufficient evidence to find that landlord’s …

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Supreme Court holds that Congress did not authorize damages judgments against state or municipal officials for violations of RLUIPA

/ Fair Housing Act, Zoning

The Supreme Court ruled in Sossamon v. Texas, 2011 U.S. LEXIS 3187 (U.S. 2011), that Congress did not waive the sovereign immunity of the United States when it passed the Religious Land Use and Institutionalized Persons Act (RLUIPA). This means that the only relief available against federal officials for violating the statutorily protected religious freedom rights of federal prisoners is prospective injunctive relief; no damages can be awarded for federal violations of the act. A similar result would apply to land owners whose land use rights are violated by federal officials. The case, however, was not against federal office but state prison officials in a state that accepted federal money to fund its prisons. The precise holding in the case was that prisoners cannot sue such states for damages when those states deprive inmates in state prisons of religious free exercise rights. A similar result could be expected for claims for …

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Tenant allowed to keep emotional support dog

/ Fair Housing Act, Leaseholds

A tenant with AIDS and related illnesses won $25,000 in emotional distress damages from his landlord for refusing to make an exception to a no-pets policy to allow the tenant to live with his emotional support dog. The Massachusetts Commission Against Discrimination made the award and ordered the landlord to allow the dog as a reasonable accommodation to his disability which included depression and anxiety. The landlord was also fined $5,000. read article

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