John Trasviña, Assistant Secretary for Fair Housing and Equal Opportunity, U.S. Department of Housing and Urban Development

MVFHC offering free CLE class to Dayton area lawyers

The Miami Valley Fair Housing Center, in partnership with the HomeOwnership Center of Greater Dayton and the Dayton Bar Association, is offering a continuing legal education class to attorneys and legal staff who want to be better equipped and knowledgeable about the mortgage foreclosure crisis, what can be done to assist Ohio homeowners facing foreclosure on their primary residence, and what resources are available to assist the attorneys in private practice and their staffs.

The course will be offered on three separate dates, free of charge, to attorneys or legal staff from the Dayton and Miami Valley Area. For more information about the course and to register online, go to mvfairhousing.com/cle.

Former owners and managers of Kansas City, KS, apartment complex pay over $2 million to settle discrimination case

February 19, 2010 — The U.S. Justice Department (DOJ) announced the settlement of a case alleging housing discrimination in the rental of apartments in Kansas City, KS. The combined $2.13 million settlement represents the second largest monetary payment ever obtained by the DOJ in a fair housing case alleging housing discrimination in the rental of apartments.

The DOJ brought a lawsuit in federal district court in Kansas alleging that Stacy Sturdevant, the community manager of the Central Park Towers Apartments (CPT), her employer, NHP Management Co., as well as the Apartment Investment and Management Company (AIMCO) and the former owners of CPT, engaged in a pattern or practice of discrimination on the basis of race in violation of the Fair Housing Act. The lawsuit also alleged that the defendants retaliated against an employee, Melissa Kothe, for cooperating with Department of Housing and Urban Development (HUD) investigators.

In its amended complaint, filed on Sept. 18, 2008, the DOJ alleged that for two-and-a-half years between 2003-2005, Sturdevant engaged in discriminatory rental practices on the basis of race. The United States presented evidence in litigation that Sturdevant openly displayed racially hostile materials at CPT, such as hangman’s nooses, frequently referred to African Americans with racial epithets and generally treated white residents more favorably than African American residents. The government also alleged that the defendants improperly retaliated against Kothe, a resident services coordinator at CPT, by firing her when she cooperated with HUD investigators and advised a resident to contact HUD.

“The right to live peacefully in one’s own home without being victimized, harassed and treated unfairly because of race is a fundamental right in our nation,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “This settlement is designed to send a message to housing providers across the country that we have a zero-tolerance policy for this type of egregious behavior.”

“Individuals who step forward to assist victims of housing discrimination should know that HUD and the Justice Department will protect them from retaliation,” said John Trasvi?a, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “This settlement vindicates that interest.”

Sturdevant was an employee of NHP Management Company, a subsidiary of AIMCO, one of the nation’s largest owners and operators of multifamily dwellings. Central Park Towers II L.P. owned the building where Sturdevant was employed? a Section 8 property with 195 units designated for persons with disabilities and/or elderly. This settlement will resolve the United States’ claims on behalf of over 40 current and former tenants of Central Park Towers, as well as the claim on behalf of Kothe.

The DOJ settled its claim against the former owners, Central Park Towers II L.P. last summer, for $145,000. That settlement, together with the agreement announced today, amount to a total settlement of $2.13 million. The settlements are in the form of consent orders that the parties have submitted to the court for approval. Last summer’s settlement with the former owners has already been approved by the court. Today’s agreement must still be approved by U.S. District Court Judge Kathryn Vratil.

The agreement filed today would require the defendants to pay $95,500 in civil penalties to the United States, and a total of approximately $1.89 million into a fund that would be used to compensate persons who were harmed by the defendants’ discriminatory practices. The terms of the distribution of the monetary damages will be determined in a separate disbursement order to be submitted by the United States for approval by the court.

Coldwell Banker company pays $160,000 to resolve housing discrimination lawsuit

February 3, 2010 — Atlanta real estate firm Coldwell Banker Joe T. Lane Realty, Inc., its successor-owner Coldwell Banker Bullard Realty Company, Inc., and the companies’ former real estate agent Rodney Lee Foreman have agreed to pay $160,000 to settle a race discrimination lawsuit filed by the United States Department of Justice (DOJ) and the National Fair Housing Alliance (NFHA). The settlement, which awaits approval from a federal court in Atlanta, is believed to be the largest real estate sales discrimination settlement in ten years involving a single agent’s behavior.

NFHA conducted a series of tests of Coldwell Banker Joe T. Lane from late 2003 in 2004 in which two testers (mystery shoppers) posed as home seekers looking for properties in the same price range. NFHA sent one white tester and one African-American tester with slightly better financial qualifications to the real estate agency to document in which area real estate agents would show and market homes. These testers had identical housing preferences.

According to the NFHA and DOJ complaints, testing revealed that Rodney Foreman discriminated on the basis of race. Foreman steered the white homeseekers away from interracial neighborhoods where African Americans lived and into white neighborhoods. He then steered African-American homeseekers away from white neighborhoods and into predominantly African-American neighborhoods. The lawsuit alleged that Foreman’s steering was conscious and deliberate.

During one test, Foreman allegedly told a white tester that he had compiled two listings of homes to visit—one for an African-American buyer and one for a white buyer—because he could not determine the tester’s race over the telephone. Once Foreman saw the tester was white, he threw away one stack of listings. While taking the same tester to visit potential homes, he said, “Once Blacks move in, then property values go down. It is impossible to resell your house… I want you to be able to re-sell your house.”

In 2005 NFHA presented this evidence to the U.S. Department of Housing and Urban Development (HUD) in the form of an administrative complaint. For unknown reasons it took HUD’s Office of Systemic Investigations three years to find probable cause and charge the complaint. NFHA elected to have the complaint proceed in federal court, so DOJ filed suit on behalf of NFHA in the Northern District of Georgia in January 2009. NFHA subsequently intervened as a party in the DOJ lawsuit.

“Five years after submitting this strong evidence of discrimination, we are pleased to see this matter finally resolved,” said NFHA President and CEO Shanna L. Smith. “Racial steering by real estate agents is a serious violation of the Fair Housing Act. It illegally limits housing choices for all homebuyers and perpetuates neighborhood segregation. Agents should understand that illegal steering practices will no longer go unchallenged. Congress intended the Fair Housing Act to eliminate discriminatory practices and to promote residential diversity. Moving forward, NFHA will continue to test real estate companies for racial steering and bring actions against those that violate the law.”

Under the Fair Housing Act it is illegal to discriminate on the basis of race, color, national origin, gender, disability or familial status. DOJ and NFHA alleged that Coldwell Banker Bullard Realty was liable for Rodney Foreman and Coldwell Banker Joe T. Lane Realty’s violations because it purchased the assets of Joe T. Lane Realty in 2007. Defendants denied liability.

This settlement follows a similar complaint NFHA filed involving a single agent working for Chicago-area real estate company Re/Max East-West, which led to a DOJ case brought on behalf of NFHA and settled for $120,000.

MVFHC awarded grants from U.S. Department of Housing and Urban Development

January 20, 2010 — The U.S. Department of Housing and Urban Development (HUD) has awarded the Miami Valley Fair Housing Center (MVFHC) two grants under HUD’s Fair Housing Initiatives Program (FHIP), the only federal funding source specifically for education, outreach and enforcement activities by private, non-profit fair housing organizations.

The grants awarded to MVFHC are:

FHIP — Education and Outreach: $100,000.00 for a twelve-month project during which MVFHC will conduct educational and outreach programs through forums including government centers, schools, churches and professional organizations such as the Greater Dayton Apartment Assocation and the Dayton Area Board of REALTORS®.

FHIP — Fair Housing Organization Initiative Continued Development General Component: $90,000.00 for a twelve-month project that will assist MVFHC in the expansion of its information technology infrastructure to better support its operational staff in the provision of enforcement and education services in the Montgomery County area.

These grants are in addition to a three-year FHIP performance-based grant awarded in 2007 that enables MVFHC to provide complaint intake, investigation and referrals for alleged victims of discrimination and to conduct systemic testing throughout the Miami Valley. In addition, a portion of the performance-based grant supports MVFHC’s Predatory Lending Solutions project.

“These grants represent a tremendous opportunity for the Miami Valley community, especially in light of the local funding constraints faced by some of our long-term funders,” said Jim McCarthy, MVFHC’s President and CEO. “It is important to realize that while this funding is essential, it is not funding that will allow MVFHC to increase its capactity but rather a retooling of the funding of MVFHC’s existing services to the community.”

The grant to MVFHC is part of $27.5 million in Private Enforcement Initiative grants awarded by HUD to help groups investigate alleged housing discrimination and to enforce the Fair Housing Act as well as substantially equivalent state and local laws.

“Over the past sixteen years, MVFHC has undergone significant growth and has worked diligently to improve fair housing services in the Miami Valley,” McCarthy continued. “We’re very pleased that HUD has recognized our work as being worthy of funding.”

The 2010 United States Census is underway. Households will receive questionnaires in March 2010 either by U.S. mail or hand delivery.

Households should complete and mail back their questionnaries upon receipt. Households not responding may receive a replacement questionnaire in early April. Census takers will visit households that do not respond to take a count in person.

Visit 2010.census.gov for more information about the Census, including a sample copy of the Census questionnaire as well as discussions about the race question wording on the 2010 form and other issues.

The Protecting Tenants at Foreclosure Act gives renters certain rights

Ohio Attorney General Richard Cordray has prepared a memo summarizing tenants’ rights regarding foreclosure that explains the protections offered to people who rent their homes and whose landlords are in foreclosure.

If the property in which you live has been taken over by a new owner, you have the the right to stay in your home until the end of your current lease, unless the new owner intends to live in the property, in which case you must be given at least 90 days advance notice before you must move.

If you experience problems with the new owner of your property, you can visit the National Low Income Housing Coalition’s Renters in Foreclosure Toolkit for some helpful resources, including a sample letter you can use to explain to the new owner your rights under the Protecting Tenants at Foreclosure Act. The Attorney General suggests that if you send any letters that you keep copies of the letters and that you send the letters via certified mail with return receipt in order to have proof that the new owner received your request.

The Miami Valley Fair Housing Center does not provide assistance to renters in foreclosure. Instead, if you live in western Ohio, you contact Advocates for Basic Legal Equality on their Legal Aid Line at 888-534-1432. You can also visit Ohio Legal Services (866-529-6446) to be connected to your local legal aid office.

Previous news items are available here.