national fair housing advocate - september 1999

8/8/2019 National Fair Housing Advocate - September 1999

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Advocate

NATIONAL FAIR HOUSING

Volume IX, Number 1 835 W. Jefferson St., Room 100, Louisville, KY 40202 September/October 1999

INSIDE

2345678

88

In July, the Fair Housing Council of SuburbanPhiladelphia ended an eight-year battle withPennsylvanias newspaper industry when two federal

district court judges ordered the Journal RegisterCompany (JRC) to publish ads no longer that containedlanguage discriminatory to families with children. The

court further ordered JRC to train its employees in fairhousing laws and pay $160,000 to the Council.

In 1996, the Fair Housing Council filed a federallawsuit alleging that JRC had published thousands ofdiscriminatory advertisements in its many newspapers. In

that lawsuit, the court issued a three-year order prohibitingJRC from publishing ads with discriminatory language.

In 1997, JRC purchased InterCounty News Group(ING), a publishing company that produced nine

newspapers. Despite the 1996 court order, JRC did notstop the ING newspapers from publishing discriminatoryads. The Council asserted that ING papers had published

ads with discriminatory language as late as May 1999.

Papers ran more than 1,000 discriminatory ads

The federal court issued a new three-year orderwhich will remain in effect until July 2002. This new orderresolves the dispute with the JRC/ING newspapers andalso the JRC-owned Pottstown Mercury andMain Line

Times. The Fair Housing Council alleged that the twolatter papers each published more than one thousanddiscriminatory ads from 1988 to 1994.

FHC of Suburban Philadelphia wins battle against

Pennsylvania newspapers with $160,000 order

Woman wins $30,000 race settlement in IllinoisHUD ALJ awards $93,000 to interracial coupleFlorida condo developers to retrofit, notify architectsFamilies/African-Americans win $300K from CA complexExperts say Fair Housing Act yields progress, frustrationNevada complexes pay $397,500 in race/family caseOCC settles case against California bank for $425,000

National Fair Housing Advocates funding efforts

The Kentucky Fair Housing Council has not publishedan issue of theNational Fair Housing Advocate sinceNovember 1998, when it learned that HUD did not awarda FHIP grant to the Council to continue its popular educa-tion and outreach project.

Since that time, dozens of housing advocates, gov-ernment agency directors, congressional representatives,and private citizens have written to HUD Secretary An-drew Cuomo, calling for renewed funding for the Advo-

cate. Many of the letter writers called the decision to stopAdvocate funding a mistake and called theAdvocate animportant tool in eliminating housing discrimination.

Since the November 1998 issue of theAdvocate,

the Fair Housing Council has submitted more than twentyfunding proposals to private organizations with no posi-tive results. Without funding for education and outreach,the Fair Housing Council has had to cut its staff and cease

a large part of its education and outreach activities, in-cluding theNational Fair Housing Advocate.

The Fair Housing Council has submitted applica-tions for education and outreach grants during the most

recent HUD funding cycle. If the Council does not re-ceive a FHIP award for education and outreach, this couldbe the last issue of theNational Fair Housing Advocate.

If other supporters would like to write to Secretary Cuomo,his address is below.

The Honorable Andrew Cuomo, SecretaryU.S. Department of Housing and Urban Development

451 Seventh Street, S.W.Washington, DC 20410

(202) 708-0417(202) 708-2706 fax

see Philadelphia continued on page 2


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September/October 1999 NATIONAL FAIR HOUSING ADVOCATE 2

In February, an African-American woman who wasdenied housing by a Berwyn, Illinois landlordreceived part of a $30,000 settlement to resolve a racialdiscrimination complaint. The woman and HOPE Fair

Housing Center filed complaints with the U.S. Departmentof Housing and Urban Development (HUD). The woman,who wants to remain unidentified, asserted that theapartment owner refused to deal with her during her

apartment search.In 1996, Marilyn decided to move out of the

dangerous Chicago neighborhood in which she was living.Her son planned to go into the military, and her daughter

planned to live with her in her new home.

Landlord refused to deal with African-Americanwoman while apartment was available

Marilyn viewed the apartment in Berwyn. Shedecided that the price was right, and that it would be largeenough for her needs. Marilyn contacted Brian Shephard,

the apartment owner, and told him she was interestedrenting the unit. Shephard told Marilyn that he would dropoff an application for her. He never did.

Over the next few weeks, Marilyn continued to try

to contact Shephard, but she never received a return call.Shephard was still advertising the apartment as available.

After weeks of being discouraged, Marilyndecided to give up on renting the apartment in Berwyn.

She planned to save some money and purchase a house,

because she did not want to face further discrimination inthe rental market.

Womans son is killed in

neighborhood she was trying to leave

Marilyns son put his military plans on hold. Hedid not want to leave his mother and sister alone in their

unsafe neighborhood. Not long after she was denied theBerwyn apartment, Marilyns son was shot and killed in anact of random violence, one block from the home she wastrying to leave.

Marilyn and HOPE contend that Marilyn lost herson because of the racial discrimination she faced. Hadshe been able to move to the Berwyn apartment, they said,Marilyns son might still be alive.

When Marilyn contacted HOPE, the fair housingcenter used testers to uncover Shephards pattern ofdiscrimination. HOPEs white tester was encouraged toapply for the apartment, while Shephard told an African-

American tester that he would mail an application to her.He never mailed an application. Shephard also did notreturn the telephone calls from HOPEs African-American tester.

Marilyn and HOPE filed complaints with HUD inApril 1997. HUDs Office of Counsel issued a Charge ofDiscrimination in November 1998. Once HUD issued thecharge, Shephard entered settlement negotiations with

HOPE and HUD.

Woman and HOPE win $30,000 racial

discrimination settlement from Illinois landlord

Philadelphia continued from page 1

This order resolves the Fair Housing Councils finallawsuit in a series of discriminatory advertising claims.Since 1991, the Council has engaged in an extensive effortto eliminate housing ads with language like no children,

adults only, or one bedroom apartment, one persononly. The Councils campaign against discriminatoryadvertising included education programs for real estateagents, newspaper professionals and home seekers. The

Council also placed its own ads to try to counteract thediscriminatory advertisements.

Nearly 100 complaints filed against newspapers

In its efforts to rid Pennsylvania newspapers ofdiscriminatory ads, the Fair Housing Council filed nearly100 complaints with the Pennsylvania Human Relations

Commission and the U.S. Department of Housing andUrban Development. The Council also filed more than

twenty lawsuits directly related to their advertising efforts.

According to FHC Executive Director JimBerry, Obtaining the cooperation of the newspapers,

Realtor and real estate industries took a combination oflitigation, education and perseverance. Once they sawthat they could not win in the courts or win by defamingus, and how easy it was to follow the law, they accepted

their duty to clean up their ads.

Discriminatory ads have disappeared

He continued, There was a time when everypaper that you might pick up in the state hadadvertisements that restricted children. Now, you wontfind a single one.


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Earlier this year, the owners and managers of a Fresno,California apartment complex agreed to pay$300,000 to settle claims of racial and family statusdiscrimination. The Fair Housing Council of Fresno

County, along with nine individual plaintiffs, filed alawsuit in federal district court against the owners andoperators of Courtyard Apartments.

Families and African-Americans steeredto the back of the apartment complex

The lawsuit alleged that the owners and resident

manager of Courtyard Apartments discriminated againstAfrican-American tenants and families with minorchildren. The Fair Housing Council asserted that African-Americans and families were steered to the back of the

apartment complex and that the back of the complex wasnot as well maintained as the front of the complex.

Additionally, the Fair Housing Council foundevidence that prospective African-American tenants

received false information about availability, and theyreceived different terms and conditions for rentals atCourtyard Apartments. African-Americans did not get anapartment at Courtyard unless they agreed to take a unit in

the rear of the complex.

Resident manager who used racial epithets openlywill leave complex under settlement terms

African-American tenants at Courtyard Apart-ments also told the Fair Housing Council that thecomplexs resident manager harassed them and used racial

slurs when referring to African-Americans. Part of thesettlement agreement required the dismissal of theresident manager and will prevent her from working at anycomplex owned or managed by the defendants. The

settlement also requires that the manager move out of thecomplex and not return as a resident.

In addition to the monetary portion of thesettlement, the agreement requires that the defendants paythe plaintiffs attorneys fees and costs. The defendantsalso agreed to revise the complex rules to eliminate any

unreasonable restrictions on children, engage inaffirmative marketing, and send all managementemployees to a fair housing course taught by the FairHousing Council.

Plaintiff: Discrimination is unacceptable.

Virginia Lang, a plaintiff in the lawsuit said thatowners cannot treat tenants poorly because of their race or

family status. Many people who rent think that ownerscan treat people any way they want, she said. I wantthem to know that this is unacceptable.

Veralee Liban, the Fair Housing Councils

executive director, agreed with Langs sentiments. Noone should have to suffer the injustices suffered by ourclients. Housing discrimination is real, and its painful.We wanted to send a clear message that housing

discrimination will not be tolerated in our community,Liban said. I believe this settlement accomplishes that,she continued.

Attorneys Christopher Brancart of Brancart and

Brancart in Pescadero, California and Steven A. Smith ofFresno, California represented the plaintiffs in thislawsuit. Attorney Michael Masuda represented thedefendants.

In announcing the settlement, HUD SecretaryAndrew Cuomo said, This settlement should send animportant message to landlords around the nation that wewill have zero tolerance for housing discrimination. He

continued, We will never come together as a nation untilwe learn to love together as a people.

The settlement order was approved by U.S. Dis-trict Judge Oliver W. Wanger and will remain in effect

until January 2002.

Many people who rent think that

owners can treat people any waythey want. I want them to know that

this is unacceptable.

--- Virginia Lang

Courtyard Apts. tenant

California complex owners pay $300,000 to housing

group and plaintiffs in race and family case

Please continue to send your press releases tothe Fair Housing Council for inclusion in theNational Fair Housing Advocate. The Council willcontinue to post online issues of the Advocateathttp://www.fairhousing.com whenever possible.Please include photos of executive directors,attorneys, complainants, or properties. See theCouncils mail and fax information on page 7.

KEEP US POSTED


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Cocoa, Floridas Fair Housing Continuum (FHC)negotiated a settlement worth $1.5 million withthe designers, builders, and developers of threecondominium complexes on Floridas east coast. The

April settlement includes the cost of retrofitting unitfeatures at each complex and a $67,500 initial payment tothe Fair Housing Continuum.

FHC found multiple design violations in the units

and common areas at Shorewood Condominiums in CapeCanaveral, Ocean Oaks Condominiums in BrevardCounty, and Oleander Pointe Condominiums in Cocoa.These violations would have made it difficult or

impossible for persons with mobility impairments to liveat the complexes.

FHC Executive Director David Baade toldFlorida Today that his organization discovered doors that

were too narrow, outlets and thermostats that would be outof reach, and thresholds that were too high for wheelchairusers. Baade described these violations as the main types

of problems FHC found at the complexes.Towne Realty, Inc., a Milwaukee-based real

estate firm, developed all three of the complexes in thiscase. The Fair Housing Continuum filed its complaint

based on violations at Shorewood and Oleander Pointe.Towne disclosed that it had also developed Ocean Oaksduring litigation. FHC named MRI Architectural Groupand Benko Construction as defendants in the Shorewood

and Oleander Pointe complaints. FHC named ZRWCorporation a defendant in the Ocean Oaks complaint.

Under the settlement agreements for eachproperty, the defendants agreed to retrofit any unit at any

of the complexes upon the request of the unit owner. Thesettlement also called for a $500 payment to any unitowners whom developers would displace while retrofit-ting was taking place. After two years, the defendants

agreed to pay FHC $100 for each unit that they did notretrofit at owners requests.

Firm will notify all Florida architects of FairHousing Act requirement as part of settlement

MRI, the architectural firm for two of theproperties, agreed to send notification of the Fair Housing

Acts design and construction requirements to everylicensed architect in Florida. According to C.J. Miles,FHCs deputy director, HUD has reported a significantincrease in the number of requests from Florida architects

for its Fair Housing Act Design Manual.Mike Mervis, a spokesperson for Towne Realty,told Florida Today that he blamed ignorance andconfusing federal regulations for the violations at the

three Florida complexes. Mervis also blamed local codeenforcement officials for allowing the projects to moveahead.

Miles agreed that local building officials were not

doing enough to enforce state and federal design laws.One Florida building official told Miles that the FairHousing Act did not apply to his office. Miles does notthink that housing advocates should let developers off the

hook for violating the Fair Housing Act and pointed to anearly 1990s HUD project designed to educate real estateprofessionals about the design and construction require-ments of the 1988 amendments to the Fair Housing Act.

Baade also blames part of the problem on a lack ofenforcement by government officials. He compared it tothe civil rights laws passed in the 1960s. The [laws] werepassed, but they werent enforced, Baade said in his

Florida Today interview.

Florida accessibility settlement may cost

condominium developers as much as $1.5 million


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U.S. Department of Housing and Urban DevelopmentAdministrative Law Judge Robert Andretta issueda default decision in favor of an interracial couple fromIllinois and ordered the owners of an apartment building to

pay $104,000. JudgeAndretta awarded$93,000 in damages tothe George and Theresia

White and imposed themaximum $11,000 civilpenalty.

The Whites filed

a complaint of racialdiscrimination againstChristopher and MariaKocerka, the owners of

12-unit apartment build-ing in Hickory Hills,Illinois. The Whitesasserted that Christo-

pher Kocerka lied tothem about the avail-ability of a rental unit when he learned that George Whitewas African-American. The Whites filed a complaint with

U.S. Department of Housing and Urban Development(HUD) in 1994, and the agencys Assistant GeneralCounsel for the Midwest issued a Charge of Discrimina-tion on August 25, 1998.

In 1993, the Whites were living in an area ofChicago being infiltrated by gangs. To protect theirchildren, they decided to move to another area. TheresiaWhite was working at a restaurant in Hickory Hills across

the street from the Kocerkas building. In October 1993,she noticed a FOR RENT sign in front of the building.

Landlord lied about availability when he saw white

womans husband was African-American

Theresia White called and spoke to ChristopherKocerka who explained lease terms and utilities. The

Whites made an appointment to view an apartment thefollowing day. When they arrived, they noticed a manstanding at the buildings entrance. The Whites assumedthat this was Mr. Kocerka. After George White got out of

the car, the man in the entrance way sent another man totell the Whites that they had rented the unit. The Whitescontend that Mr. Kocerka did this, because he saw thatGeorge White was African-American.

About an hour after being told that the Kocerkas

had rented the apartment, Theresia White called Mr.Kocerka and, without identifying herself, asked if theapartment was still available. Mr. Kocerka confirmed thatthe apartment was still available. He then asked Mrs.

White is she was black or white. Mrs. White respondedthat she was white, and Mr. Kocerka told her that he did notwant blacks in his building.

Because the Whites found another apartment in

the same area, they saw the FOR RENT sign in front ofthe Kocerkas building for more than three months. TheWhites had tried to rent the apartment in October 1993. Itremained vacant until January 12, 1994 when the

Kocerkas rented it to a white person.The Kocerkas never filed a response to the

Whites complaint of housing discrimination despitewarnings that failure to do so could result in a default

decision against them. When HUD filed a Motion forEntry of Default Decision, Judge Andretta wrote to theKocerkas to give them an additional chance to respond tothe charges. The Kocerkas still did not file a response.

During a hearing to determine damages, theWhites both testified that the discrimination had causedgreat emotional distress to their family. The Whites andtheir children testified that they were angry and upset that

someone had chosen to deny them an apartment because oftheir race or the color of their skin.

Mrs. White testified that her brother, who was alsoin an interracial relationship, had been having problems in

their hometown of Buffalo, and that she had tried toconvince him to move to Chicago. Mrs. White said herbrother had been considering the move. Once she told himof the discrimination she had encountered, however, her

brother changed his mind. He later committed suicide.Mrs. White testified that she blames herself for herbrothers suicide, because she told him about thediscrimination she had encountered.

Judge Andretta found that the $93,000 in damagesHUD had asked for in its charge were reasonable andawarded the entire amount. They included $50,000 toTheresia White and $40,000 to George White for

intangible losses. The remaining $3,000 is for out ofpocket expenses, and specifically for the difference in rentat the Whites apartment compared with that at theKocerkas building.

Interracial couple wins $93,000 in damages from

Illinois husband and wife in default decision

HUD Secretary AndrewCuomo announced severalfair housing victories at a re-cent press conference.

HUD ALJ Case No. 05-94-0537-8Complaint filed: January 1994Charge Issued: August 25, 1998

Decision and Order: May 4, 1999


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The Federal Government has made some progress inmeeting its fair housing goals during the pastthree decades but could do much more to reducehousing discrimination and segregation, say contribu-

tors to the most recent issue ofCityscape: A Journal ofPolicy Development and Research. Available fromHUDs Office of Policy Development and Research,the issue com-

memorates the30th anniver-sary of the FairHousing Act.

S t a t i s -tics shared byseveral authorsreflect an ap-

parent lack ofsuccess inimplementingthe Act. Michael

H. Schill andSamantha Friedman of New York University reportthat as few as 10,000 individuals file housingdiscrimination complaints under the Fair Housing Act

each year. This compares with the approximately80,000 employment discrimination cases the EqualEmployment Opportunity Commission receives annu-ally. According to John Yinger of Syracuse University,

HUD-funded fair housing audits conducted in 1977 and1989 detected no change in the level of housingdiscrimination practiced in the United States between1968 and 1988.

Cityscape authors do note some successes inreducing housing discrimination and segregation sinceCongress passed the Fair Housing Act in 1968. Guesteditors John Goering of HUD and Gregory Squires of

the University of Wisconsin- Milwaukee cite a 1998report by President Clintons Initiative on Racesuggesting that Whites have changed their attitudesabout housing integration in the past 40 years. In 1997,

only 18 percent of Whites who were surveyed said thatthey would move if Blacks came into theirneighborhood, compared with 80 percent whoexpressed the same inclination in 1958. On an equally

positive note, Nancy A. Denton of the State Universityof New York at Albany reports that by 1990 mosthomogeneously White neighborhoods had virtuallydisappeared from metropolitan areas and central

cities. Bill Lann Lee, Acting Assistant Attorney

General for Civil Rights, outlines many of thesuccessful cases the U.S. Department of Justice hasfiled alleging racial discrimination in rental housing.As of 1997, plaintiffs in 36 cases had been awarded

more than $4.4 million in penalties.These successes do not necessarily signal

significant declines in racism or housing discrimina-tion. George C.

Galster of WayneState Universityreports thatWhites still ex-

press negativeopinions and ste-reotypes whenasked specific

questions aboutBlacks. Joe R.Feagin of theUniversity of

Florida notes thatmost White Americans believe racial discriminationposes no serious problems for minorities. Minorities,on the other hand, believe discrimination is getting

worse and is keeping them from realizing theAmerican Dream. James H. Carr of the Fannie MaeFoundation suggests that discrimination can become soinstitutionalized that it continues long after the desire

to discriminate has faded.Looking to the future, several Cityscapecontributors recommend that enforcement agenciesconduct more aggressive testing and investigative

efforts to identify and eradicate housing discrimina-tion. The fundamental flaw in the Fair Housing Act,writes Galster, is that it relies on the victim torecognize and formally complain about the suspected

acts of discrimination. Given the subtlety ofdiscrimination as it is practiced today, such reliance ismisplaced.

Order Cityscape: A Journal of Policy Develop-

ment and Research, Volume 4, Number 3, from HUDUSER for $5. You can order online at http://www.huduser.org, or by calling 800-245-2691.

Fair Housing Act yieldsprogress and frustration

This article was reprinted from the June 1999 issueofRecent Research Results, a newsletter from HUDUSER. Contact HUD USER at the above number to

receive copies of this newsletter.


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Please add my name Please correct my address Please remove my name

Please send information for using theAdvocate web page (http://www.fairhousing.com)

Name

Title

Organization

Address

City, State, ZIP

Phone ( ) Fax ( )

Please select one:

Federal Government Architect

Civil Rights Agency Builder/DeveloperFHAP Agency Real Estate AgentComm Development Mortgage BrokerState/Local Govt Bank/LenderFHIP Grantee Landlord/OwnerCHRB Mobile Home Park Mgr

Other Nonprofit/Adv Tenant/ResidentAttorney Academic/ResearcherPlanner Other

Please fax or mail to:Galen Martin, EditorTony Baize, Assistant Editor

Fax # 502/583-3180 Voice 502/583-3247

National Fair Housing Advocate

835 W. Jefferson St., Room 100Louisville, KY 40202

On March 8, 1999, a U.S. District Court judge in Reno,

Nevada approved a settlement agreement that

resolved a class action lawsuit against six federallysubsidized apartment complexes. The lawsuit, whichoriginally began as an administrative complaint to the U.S.Department of Housing and Urban Development (HUD),

asserted that the owners and operators of these complexesdiscriminated against nonwhite tenants and families withminor children.

In May 1994, Truckee Meadows Fair Housing

assisted a single complainant in filing the HUD complaint.HUD issued a Charge of Discrimination, and therespondents chose to pursue the matter in federal court.

HUD referred the case to the Department of Justice whichfiled a class action lawsuit on behalf of the originalcomplainant and families with children.

Employees harassed children and minority

residents at each subsidized complex

Both the original complaint and the JusticeDepartment lawsuit alleged that the employees of

Pinewood Associates, Manage Incorporated, and otherdefendants harassed families with children in severalways. The plaintiffs accused the complexes employees of

yelling obscenities at children, threatening parents witheviction over minor infractions involving their children,and imposing unreasonable and discriminatory regula-tions on children. The complaint also asserted thatemployees treated white tenants more favorably than

nonwhite tenants, and that employees used racial epithetsopenly.

Under the settlement agreement, the defendants

agreed to the following provisions:

a $240,000 victim fund, administered by theUnited States, which will compensate personsidentified as victims of the alleged discriminatorypractices; a $42,500 cash payment to the original

complainant in the case; a $15,000 civil penalty paid to the UnitedStates; a $100,000 payment for plaintiffs attorneys

fees and costs; fair housing education for defendantsemployees;

publication of a no discrimination policy ateach complex; and revision of rules and regulations dealing with

families with children.

U.S. Attorney Kathryn Landreth pointed to the

cooperation between Truckee Meadows Fair Housing,HUD, and the Justice Department as the reason the partiessettled this case successfully. I applaud TruckeeMeadows Fair Housing and the Justice Department for

aggressively pursuing this case, she said.Justice Department Attorney Lars Waldorf

represented the United States in the lawsuit. ChristopherBrancart, a California civil rights attorney, and Ian

Silverberg, a Nevada civil rights attorney, represented theprivate plaintiff and the certified class in the JusticeDepartment lawsuit. Katherine Copeland, the executivedirector of Truckee Meadows Fair Housing, said she was

proud to have her organization work closely with all of theagencies involved in the plaintiffs case.

Truckee Meadows Fair Housing and Justice

Department win $397,500 settlement


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Notice: This publication is supported using Kentucky Fair Housing Council funds from complaint settlement agreements.

Fair Housing Council

835 W. Jefferson ST., Room 100

Louisville, KY 40202

Address correction requested

Non-Profit Org.U.S.POSTAGE

PAIDLouisville, KY

Permit No. 743

In March, First Central Bank of Cerritos, Californiaagreed to pay $425,000 into a settlement fundafter the Office of the Comptroller of the Currency (OCC)made allegations that the bank had illegally

discriminated against 40 non-Asian mortgageapplicants. The OCC complaint accused FirstCentral of violating provisions of the federalFair Housing Act and the Equal Credit

Opportunity Act.

According to the OCC, a 1997investigation revealed that First Central, whichis owned by an Asian company, may have

rejected mortgage loan applicants based on theirrace or national origin. The OCC identified 28questionable loan files that involved 40 separateapplicants. The bank did not admit or deny any

wrongdoing.

California bank pays $425,000 to settleclaims of discrimination against non-AsiansThe $425,000 settlement fund will be divided

equally among the 40 rejected applicants that the OCCidentified. Under the terms of the settlement agreement,

First Central will notify each identified applicant

and inform them of their right to participate in thesettlement. Each applicant identified aswrongfully rejected will receive $10,000. Theremaining $25,000 will be paid to the United

States as a civil penalty.

Since 1993, the OCC has referred 31 cases oflending discrimination to the United StatesDepartment of Justice and the United States

Department of Housing and Urban Development.The OCC is a division of the United StatesDepartment of the Treasury and is the federalagency that charters, regulates, and examines

approximately 2,600 American banks.

John D. Hawke, Jr. isthe U.S. Comptrollerof the Currency

national fair housing advocate - september 1999

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