ECBA filed a federal lawsuit today on behalf of the Fair Housing Justice Center (FHJC) and Westchester Residential Opportunities (WRO) against the Town of Bedford and its affordable housing agency, Blue Mountain Development.
Like other Westchester County towns, Bedford’s population is overwhelmingly white. The complaint alleges that the Town awards its affordable “middle income” housing using “preferences” in its zoning code. These preferences prioritize people who already live or work in Bedford and who are far more likely to be white. These preferences violate the Fair Housing Act because they discriminate against African Americans who would otherwise be eligible for the Town’s affordable housing and make it more likely the housing will be given to white people.
The plaintiffs FHJC and WRO are represented by ECBA attorneys Diane L. Houk and Zoe Salzman.
Read the complaint here.
A White Plains housing cooperative and rental management company have paid $125,000 to settle a housing discrimination case initiated by M. Forster, a 34-year old disabled man living in Westchester County, New York. Mr. Forster sought to purchase an apartment in a building owned by the coop and managed by the rental company using his special needs trust, but was told that ownership by trust was not permitted. The suit, filed by the U.S. Department of Justice, challenged the coop’s and management company’s refusal to grant Mr. Forster a reasonable accommodation. The settlement was covered by Westfair Online here, and a press release issued by the government can be found here.
ECBA attorneys Diane L. Houk and Alanna Kaufman represented Mr. Forster and his special needs trust.
The New York Attorney General announced a settlement agreement with the German American Settlement League (“GASL”), to continue reforms achieved in a previous settlement obtained by ECBA. The GASL, a membership-based nonprofit, was alleged to have excluded non-whites from purchasing homes in its Long Island community since the late 1930s. The new AG settlement includes changes to GASL’s membership policies, the replacement of its President and Treasurer, and regularly reporting to the AG to demonstrate compliance. An interview with ECBA attorney Andrew Wilson concerning the two GASL settlements on CBC’s “As It Happens,” can be heard here. The entire segment is available here.
Plaintiffs in the ECBA matter were represented by ECBA attorneys Diane L. Houk and O. Andrew F. Wilson.
The United States Supreme Court has ruled that the City of Miami has standing under the Fair Housing Act to sue banks that engaged in predatory lending, triggering foreclosures and other harms throughout the City. ECBA filed an amicus brief in the case supporting the City’s position, on behalf of Miami’s firefighters and first responders who have had to cope with an increase in crimes and other problems festering in foreclosed, vacant properties. The brief was authored by ECBA attorneys Diane L. Houk, Debra Greenberger, and Zoe Salzman.
On March 1, 2017, the United States filed a housing discrimination suit on behalf of several ECBA clients against Bedford Development LLC, Carnegie Construction Corp., Jobco Inc., Robert Pascucci, and Warshauer Mellusi Warshauer Architects, P.C. The complaint alleges that these defendants failed to design and construct Sutton Manor condominium in Mount Kisco, New York, in a manner accessible to persons with disabilities. ECBA represents several disabled residents who purchased units at Sutton Manor based on the false promise of an accessible home to live in post-retirement. This suit originates from complaints ECBA filed on behalf of these residents with the Department of Housing and Urban Development. They are represented by Diane L. Houk and Jessica Clarke of ECBA.
To read more about the complaint, click here.
On August 12, 2016, ECBA and MFY Legal Services filed a federal class action challenging the legality of a Department of Housing and Urban Development (HUD) program that sells government-insured FHA home mortgages to private equity funds, leaving these borrowers without insurance-program benefits they are entitled to and putting them at heightened risk of foreclosure. The suit further alleges that HUD’s program violates the Fair Housing Act because HUD is disproportionately selling FHA loans issued to African-American borrowers in New York City for homes in predominantly African American neighborhoods like St. Albans, Queens.
The lawsuit, filed in the Eastern District of New York, also challenges the actions of Lone Star Funds, the largest purchaser of mortgages sold through the HUD program. The lawsuit alleges that once Lone Star purchases the mortgages from HUD, it preys on the homeowners: the company makes false and misleading statements to the homeowners, refuses to offer homeowners loan modifications it is legally obligated to provide, and instead offers homeowners exploitative loan modifications that spell almost certain foreclosure for these borrowers down the line. The complaint also alleges that Lone Star violates the Fair Housing Act because its policies disproportionately impact African-American borrowers and predominantly African-American communities in New York City.
The suit was covered by the New York Times on Monday, August 15, 2016. The putative class is represented by ECBA attorneys, Matthew D. Brinckerhoff and Diane L. Houk, along with co-counsel MFY Legal Services. A copy of the complaint is accessible here.
On June 30, 2016, the Second Circuit reversed the District Court’s approval of a class action settlement concerning the fees Visa and Mastercard charge merchants for accepting credit cards. ECBA represents the leading merchant trade groups that objected to the settlement, The National Retail Federation and Retail Industry Leaders Association. ECBA attorneys Andrew G. Celli, Jr. and Debra L. Greenberger wrote one of the two primary objecting merchant appeals briefs; Mr. Celli and ECBA attorney Diane Houk handled the case in the District Court.
A lawsuit filed by ECBA against the German American Settlement League (“GASL”) alleging racial discrimination settled this month for $175,000 and broad injunctive relief. The complaint alleged that GASL, a membership-based nonprofit, had excluded non-whites from purchasing homes in its Long Island community since the late 1930s. GASL has agreed to remove its racially restrictive membership rules and to permit advertising, open houses, and other forms of public marketing of homes for sale. Among other things, GASL Board members have agreed to attend fair housing training and to permit Long Island Housing Services to monitor its applications and organizational records for several years.
Plaintiffs were represented by ECBA attorneys Diane L. Houk and O. Andrew F. Wilson.
A federal court approved a $230,000 settlement of a housing discrimination case brought by ECBA on behalf of two non-profits and seven individuals. The plaintiffs alleged that Manhattan-based management company Empire Management America Corp., the owner, and manager of a Suffolk County apartment complex racially discriminated against African Americans. In 2014, African American and white testers went to the complex and inquired about renting apartments. The complaint alleged that the African American testers were lied to about the number of available apartments and when apartments would become available to rent in the future. The African American testers, Fair Housing Justice Center, and ERASE Racism were plaintiffs in the case. The settlement requires the defendants to provide housing discrimination training for its employees, adopt a non-discrimination policy, publicly advertise apartments for rent, and permit inspection of certain records for three years. The plaintiffs were represented by ECBA attorneys Diane L. Houk and Ted Oxholm.
Emery Celli has filed a federal lawsuit that challenges the racially discriminatory housing policies of the German-American Settlement League (“GASL”). The GASL owns Siegfried Park in Yaphank, Long Island, where, in the late 1930s, German Americans traveled to rally together in support of Nazism. Since its incorporation in 1937, the GASL has excluded non-whites from its membership, recreational programs, and summer homes in favor of new residents with German ancestry. As stated in its Constitution, one of the purposes of the GASL is to “introduce, cultivate, and propagate in every direction true Germanic culture and to cultivate the German language, customs and ideals.” The GASL requires its members “primarily” to be “of German extraction.” New members must be sponsored by a current member and accepted by a majority vote of the Board and membership. GASL membership may be extended under limited circumstances to “other national elements” only if they are sponsored by current members. The lawsuit challenges these restrictions and seeks, among other things, to amend the by GASL bylaws to allow for equal access to housing.
Plaintiffs are represented by ECBA attorneys Diane Houk and Andrew Wilson.
Read the New York Times’ coverage of the lawsuit and the GASL here; read the full complaint here.