REAL RECENT HUD VIOLATION LAWSUITS AND THE OUTCOMES:
- United States v. Meyer (E.D. Mo.)
In January 2021, HUD filed a complaint against the property owners for refusing to allow a tenant to keep an emotional support animal, violating the Fair Housing Act (FHA). The court entered a consent order in December 2021, requiring the defendants to pay $18,000 in damages to the complainants and adopt a new policy regarding assistance animals. - United States v. Bacchus (E.D. Pa.)
This case involved discrimination based on familial status and disability. The defendants refused to allow a tenant recovering from alcohol addiction to move his pregnant girlfriend and child into his unit. A consent order was reached in February 2022, with the defendants paying $75,000 in damages and agreeing to implement nondiscrimination policies and Fair Housing Act training. - United States v. Fox Run Apartments, LLC (D. Kan.)
In August 2023, HUD's lawsuit centered on Fox Run Apartments, accusing them of violating the FHA by denying a tenant's request for an extension to submit verification of a disability-related need for an assistance animal. The court denied the motion to dismiss the case, moving it forward for resolution. - United States v. Rupp (8th Cir.)
A case regarding discrimination based on familial status resulted in the court affirming a significant $60,000 award in punitive damages in May 2023. The case involved a refusal to rent to a family with children, marking a strong outcome in favor of tenants' rights under the FHA. United States v. Heritage Properties
A settlement was reached in the case of United States v. Heritage Properties over discriminatory practices and unlawful fees at senior housing properties, including Traditions of Hanover. The defendants, Heritage Senior Living, were found to have imposed a $500 non-refundable deposit on residents using motorized mobility devices and required them to transfer from wheelchairs to dining room chairs. These actions violated the Fair Housing Act, leading to a settlement where the defendants paid between $250,000 and $325,000 to affected tenants, along with a $55,000 civil penalty. The settlement also mandated the adoption of new policies to ensure compliance with fair housing laws and better accommodations for individuals with disabilities.
- United States v. Dorchester Owners’ Association (E.D. Pa.)
In January 2023, a jury found the property owner liable for discriminating against tenants with assistance animals. The final judgment awarded $37,000 in damages, a $1 civil penalty, and required the defendants to revise their policies and promptly address requests related to assistance animals. - United States v. Midtown Motel (New York, 2022)
The owners of Midtown Motel discriminated against a tenant with a disability by refusing to allow her assistance animal. The settlement mandated the motel owners to pay $30,000 in damages to the complainant and adopt policies that align with the Fair Housing Act. - United States v. Sentinel Real Estate Corp. (Georgia, 2021)
In this case, the property managers were accused of delaying approval for a reasonable accommodation request for a service animal and issuing a non-renewal notice based on race and disability. The settlement required the property managers to pay $35,000, revise their accommodation policies, and undergo Fair Housing training. - United States v. Jimmie Bell case
A recent HUD violation case involving security deposit issues is the United States v. Jimmie Bell case, which was filed in the Western District of Missouri. In this case, Bell, acting through properties he managed under his businesses, was accused of a pattern of sexual harassment and retaliatory actions against female tenants. This misconduct included not only sexual harassment but also actions that impacted tenants’ rights, such as withholding repairs and attempting evictions when tenants rejected his advances. The charges were brought after HUD's investigation into the harassment, which led to a determination of reasonable cause for discrimination based on sex. The case continues to unfold with actions related to the violation of tenants' rights.
Security Deposit Violations
The most common HUD violations centers around security violations that include failing to provide a detailed itemized list of deductions, withholding deposits without just cause (such as for normal wear and tear), and not returning deposits within the required timeframe. Other violations include improper deductions for non-damages or unpaid rent, not notifying tenants of deposit retention, and engaging in discriminatory practices when handling deposits. These actions have led to lawsuits with severe consequences and financial penalties for brokers and owners alike.
Importance of Fair Housing Compliance
These cases highlight the importance of Fair Housing compliance and emphasize the need for property managers to provide reasonable accommodations and prevent discrimination based on disabilities or familial status. At Atlanta Marietta property management, we believe that every individual deserves access to housing opportunities free from discrimination. Our commitment to fair housing compliance is not just about meeting legal obligations; it’s about creating inclusive communities where everyone feels welcome. The Fair Housing Act serves as our guiding framework, and we actively ensure that all aspects of our property management align with its principles.
What is Fair Housing?
Fair housing compliance refers to adhering to the principles and regulations set forth by the Fair Housing Act, a federal law that prohibits discrimination in housing-related activities. This includes renting, selling, or advertising properties based on protected characteristics such as race, color, national origin, religion, sex, familial status, or disability. Compliance ensures that everyone has equal access to housing opportunities, free from bias or unfair treatment. For property managers, this means implementing policies and practices that promote equity, such as using consistent screening criteria, honoring reasonable accommodation requests, and fostering inclusive communities. By upholding these standards, fair housing compliance protects both housing providers and tenants while contributing to more just and diverse communities.
Important of Compliance
Complying with fair housing laws is essential for us and our property owners, not only to avoid legal and financial risks but also to foster trust and inclusivity within the communities we manage. Non-compliance with fair housing regulations can result in significant penalties, lawsuits, and reputational damage for both property managers and owners. By adhering to these laws, we protect our clients’ investments and ensure their properties remain attractive to a diverse pool of prospective tenants.
Beyond legal requirements, fair housing compliance reflects our shared values of fairness and respect. When tenants feel treated with dignity and have equal access to housing opportunities, they are more likely to become long-term residents who care for their homes and contribute positively to the community. This stability benefits both our company and our owners by reducing tenant turnover and maintaining the value of the properties we manage.
Transparent Screening and Leasing Practices
Our tenant screening process is built on transparency and equality. We publish the criteria we use to evaluate applications, focusing solely on objective factors like income, credit history, employment checks, and previous landlord rental references. By eliminating subjective considerations, we reduce the potential for bias. Similarly, our leasing agreements are crafted to be clear, fair, and consistent across all properties, ensuring that every tenant understands their rights and responsibilities.
Proactive Property Management Policies
We go beyond compliance by fostering environments that support diversity and inclusion. This includes responding promptly to tenant concerns, providing reasonable accommodations when needed, and ensuring that all tenants feel respected and valued. Additionally, we regularly review our policies and practices to identify areas for improvement, reinforcing our commitment to equitable housing practices.
At Atlanta Marietta, fair housing is more than a legal requirement—it’s a core value. Compliance strengthens our credibility and reputation as a property management company and by demonstrating our commitment to equitable practices, we build trust with current and future clients while setting a standard for ethical property management. For owners, partnering with a company that prioritizes fair housing ensures their properties are managed with integrity and compliance, minimizing risk and maximizing tenant satisfaction. We take pride in managing properties where everyone has the opportunity to thrive, and we remain steadfast in our efforts to promote fairness, equity, and inclusion across all our communities.
Questions? Contact Kathy Pecora at 404-692-3543.
