Tuesday, July 6, 2010

ATTORNEY GENERAL ANDREW CUOMO, JOINED BY LAWMAKERS, ANNOUNCES LAWSUITS AGAINST LANDLORDS FOR RACE DISCRIMINATION AFTER UNDERCOVER INVESTIGATION

Landlords in Brooklyn and the Capital District Denied Access to
Apartments to Black Applicants
See  full size image

Cuomo also Reaches Agreement with a Second Brooklyn Landlord as Part of
Ongoing Investigation


New York, NY (July 6, 2010) - Attorney General Andrew M. Cuomo today
filed lawsuits against the owners and managers of residential housing
complexes in Brooklyn and Glenville, Schenectady County for refusing to
rent or show apartments to black applicants. The Schenectady County
owner and manager are also charged with refusing to rent to families
with children.

The lawsuits were filed in federal district courts in Brooklyn and
Albany against 1648-50 Ocean Parkway in Brooklyn and Shady Lane
Apartments at 133 Saratoga Road in Glenville after an undercover
investigation. The lawsuits allege violations of federal and state
housing and civil rights laws and seek civil penalties and an injunction
prohibiting the companies from engaging in discriminatory practices.

The Attorney General also reached an agreement with another Brooklyn
landlord, 1750 Associates LLC and Eilat Management, for discriminating
against black applicants in renting apartments in their buildings. The
agreement requires the companies to comply with fair housing laws;
ensure that rental agents participate in anti-discrimination training;
implement new rental procedures; and pay $40,000 in damages.

“We all share the basic need for housing, and the law protects our
equal access to it,” said Attorney General Andrew Cuomo. “Our
investigation found that housing discrimination continues to this day
and landlords who continue to ignore the law will be prosecuted to the
fullest extent of the law.”

As part of a state-wide investigation into equal access to housing,
the Attorney General’s office conducted undercover tests in which
white testers and black testers visited apartment complexes in New York
and inquired about available apartments. The tests, which were recorded,
reveal that black testers were discriminated against at the following
apartment complexes:


● 1648-50 Ocean Parkway, Brooklyn, owned by 1650 Realty
Associates, LLC and managed by Golden Touch Management, Inc.

● 1750 Ocean Parkway, Brooklyn, owned by 1750 Associates, LLC and
managed by Eilat Management Corp.

● Shady Lane Apartments at 133 Saratoga Road, Glenville, owned by
Socha Management, Inc.

Our investigation showed, among other things, that certain landlords:

● Told black testers there were no apartments available when
apartments were available.

● Told black testers that they had to make an appointment and fill
out an application before viewing apartments but allowed white testers
to view apartments immediately.

● Discouraged black testers from applying for apartments by
telling them, among other things, that there were pending applications
for the apartments which would prevent their application from being
considered, while not telling white testers who inquired on the same day
of any pending applications.

In addition, in tests conducted at Shady Lane Apartments in Glenville,
New York, the landlord’s agent told both white and black testers who
said they had children that they do not want young kids in their
buildings. The agent also asked some testers if they ever planned to
have children.

The lawsuits allege that landlords violated the federal Fair Housing
Act and New York State housing and civil rights laws, which makes it

illegal to refuse to sell, rent, lease or otherwise deny or withhold
housing because of race, familial status and other protected classes.
The lawsuits seek to stop these landlords from engaging in
discriminatory practices that deny black applicants or families with
children the opportunity to rent apartments on the basis of their race,
color or familial status, and to obtain a court order requiring these
companies to implement policies and procedures to prevent such unlawful
action in the future. The lawsuits also seek penalties, and compensatory
damages.

The Attorney Generals office has also created a fair housing Web site
at www.ag.ny.gov. The site:

● Explains fair housing laws

● Provides information about available resources

● Allows New Yorkers to file a complaint with the Attorney
General’s office.

Senator Eric Adams said, “Across the state New Yorkers should always
have a place to call home, regardless of their color, age, familial
status, or any other characteristic that a dishonest landlord may use to
deny them an apartment. I commend Attorney General Cuomo’s aggressive
pursuit of violators of fair housing laws, especially his use of
undercover testing.”

Assemblyman Hakeem Jeffries said, “It is shameful that some landlords
continue to deny housing to African-American families simply on the
basis of race. I commend Attorney General Cuomo for his efforts to root
out discrimination in New York State and provide everyone in our
community with equal protection under the law.”

Assemblyman Karim Camara said, “We must remain diligent in working to
end discriminatory practices in housing or wherever they may occur,
which is exactly what Attorney General Cuomo is doing here today. I look
forward to a continued partnership with his office in working through
these and other issues that impact my constituents and the people of
this state.”

Adriene Holder, Attorney-in-Charge of the Civil Practice of The Legal
Aid Society in New York City, which includes a city-wide housing
practice, said, “Decades after reconstruction and the passage of
federal and state anti-discrimination laws, these cases and others
around the country highlight the sad and disturbing fact that
discrimination is alive and well. The Attorney General, by vigorously
enforcing fair housing and civil rights laws, is helping to dismantle
brick by brick the stinging effects of discrimination that are felt by
all residents of this State. We applaud Attorney General Cuomo for his
commitment to defending the civil rights of all New Yorkers, regardless
of their race.”

These settlements and lawsuits are a part of Attorney General Cuomo’s
ongoing efforts to enforce laws that promote equal access to housing
across New York State, including:

● In April 2010, the Attorney General reached agreements with six
large developers of rental apartment complexes in New York State to
ensure equal access to housing for people with disabilities. Under the
agreements, the developers - Port Jefferson Town Properties, LLC;
Fairfield Pinewoods, LLC; Hudson Park Investors, LLC and Collins Yonkers
II, LLC; Regency Club at Wallkill, LLC; Riverbend at Wappingers Falls,
LLC; and Main Street Lofts, LLC - must offer to make retrofits to
apartments and retrofit common areas and to ensure that people with
disabilities have the full use and enjoyment of the facilities. The
developers must also collectively pay $145,000 to compensate individuals
who were harmed by the inaccessible housing. They will also work with an
independent expert to certify that future construction of apartment
complexes is in compliance with New York State and federal accessibility
laws.

● In March 2010, the Attorney General filed lawsuits against two
loan modification companies, National Modification Service and Infinity
Funding Group, for engaging in nationwide foreclosure rescue scams. The
companies and their owners prey on homeowners facing foreclosure by
claiming that they can save their homes
, but often fail to provide the
services promised. National Modification is based in Farmingdale, New
York and Infinity is based in Bohemia, New York. The Attorney General
recently obtained a default judgment on June 1 for $8.8 million against
Infinity. The case against National Modification is pending before the
New York State Supreme Court. The Attorney General also previously
obtained a favorable ruling against Amerimod, one of the largest loan
modification companies operating in New York and nationally, reached
settlements with mortgage rescue companies ABM Mitigation Corporation,
Raymond Louis & Fitch and Global Modification Services, and issued cease
and desist letters to 213 loan modification companies alleged to be
doing business in New York.

● In February 2010, the Attorney General reached an agreement with
Vantage Properties for $1 million to address allegations of tenant
harassment in residential housing facilities in Queens, Harlem and Upper
Manhattan. The agreement requires Vantage to compensate tenants who
have suffered harassment and to fund not-for-profit organizations that
provide free legal and educational services to tenants. Vantage is also
required to implement new policies related to processing complaints,
initiating legal proceedings, collecting rent, and establishing
succession rights.

● In January 2009, the Attorney General reached agreements with
mortgage brokerage companies who were discriminating against
African-American and Latino borrowers. The agreements required the
companies - HCI Mortgage and Consumer One Mortgage - to pay $665,000 in
restitution to approximately 455 Black and Latino borrowers who were
illegally charged higher fees than similarly-situated White borrowers.
The Attorney General also sued another brokerage company - U.S. Capital
Funding, LLC - that engaged in similar discriminatory practices and the
case was resolved through a settlement.

There are several state and federal laws governing fair access to
housing that make it illegal to deny housing based on:

● Race
● Color
● Religion
● Sex
● Familial Status
● National Origin
● Age
● Disability
● Marital Status
● Sexual Orientation
● Military Status

Consumers who believe they are being discriminated against by landlords
or providers of housing-related services are urged to contact the
Attorney General’s Office at 1-800-771-7755 or visit the Attorney
General’s Web site www.ag.ny.gov.

These cases are being handled by Assistant Attorneys General Sunita
Kini-Tandon, Brooke P. Davis, and Kayla Gassmann, under the supervision
of Alphonso B. David, Special Deputy Attorney General for Civil Rights,
and Spencer Freedman, Chief Counsel for Civil Rights.

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