Three LI real estate firms settle housing discrimination claims
A landlord agreed to pay $20,000 to settle complaints that it discriminated against renters at Oakwood Manor in Bay Shore and Nu Horizons in Copiague. Credit: Rick Kopstein
Three Long Island real estate firms entered into settlements to resolve allegations of housing discrimination, according to Long Island Housing Services, the Bohemia-based fair housing nonprofit that brought the complaints.
LIHS investigated the companies, which include two brokerages and a property owner, through fair housing testing, in which individuals posing as prospective renters inquired about available apartments.
The cases involved source of income discrimination, in which a housing provider treats a prospective tenant differently because they intend to use certain types of income, such as Section 8 housing vouchers, child support or Social Security payments.
LIHS has documented a string of similar cases of landlords and real estate agents discriminating against tenants who seek to use Section 8 vouchers over the past few years. On Monday, New York Attorney General Letitia James said she would fund a $3 million program that would support fair housing testing, offering nonprofits grants of up to $250,000 to conduct testing and help those seeking housing.
In the latest case, the Cassata Organization Family Limited Partnership, and several related limited liability corporations, agreed to pay $20,000 to settle complaints that they engaged in disability and source of income discrimination against renters. LIHS said it received complaints in 2019 from the nonprofit Suffolk Independent Living Organization that the landlord had refused to accept applications from its organization on behalf of clients with disabilities at the apartment complexes Oakwood Manor in Bay Shore and Nu Horizons in Copiague.
After receiving complaints from the nonprofit, LIHS investigated from December 2019 to February 2020 and found that employees refused to accept payments from government vouchers, including money from Section 8 vouchers, HUD-Veterans Affairs Supportive Housing and the state's Rapid Transition Housing Program for high-need Medicaid beneficiaries.
The investigation showed people posing as individuals with housing vouchers were not told about available apartments or were not allowed to view them. Employees of the company told individuals who said they did not plan to use government assistance about the apartments.
“There were available units at the development that people could rent,” said Ian Wilder, executive director of Long Island Housing Services, “but they were just not willing to rent them, despite this being the law in Suffolk County since 2015.”
In addition to the monetary settlement, Cassata agreed to adopt a non-discriminatory fair housing policy, display signage that it complies with fair housing laws, and train its employees and agents on such laws. The organization did not respond to messages seeking comment.
LIHS said four individual complainants also settled with Cassata for an undisclosed amount.
Joseph Delgado, CEO of Suffolk Independent Living Organization, said he was grateful the company agreed to a change in behavior.
“If you have the money, whether it is in the form of a paycheck or a subsidy, to rent an apartment, you should have full accessibility like everyone else to that apartment,” he said.
In addition to its settlement with Cassata, Long Island Housing Services reached settlements with two real estate brokerages last month.
H&G Realty, which has offices in Middle Island and Miller Place, agreed to pay $10,000 and adopt policy changes including displaying its compliance with fair housing laws and training its employees and agents.
H&G Realty did not return phone calls left by Newsday seeking comment.
The settlement stemmed from allegations in 2018 that the brokerage, which had listed apartment rentals at New Highway Apartments in Copiague, had engaged in source of income and disability discrimination.
LIHS also settled a case involving Kennedy Realty in Islip last month following 2020 allegations that it had discriminated based on source of income, familial status and age, which are all protected classes under local and state laws.
The nonprofit’s investigation revealed a person affiliated with Kennedy Realty told a potential renter that the landlord it was representing didn’t “want to accept any programs,” according to Wilder. In a comparison test, a person without a housing voucher was able to schedule an appointment to see the unit. But during this test, the agent told the tester the landlord “would prefer people without children,” according to LIHS.
Anthony Kennedy Sr., owner and broker at Kennedy Realty, declined to comment when reached Monday by Newsday.
Kennedy Realty agreed to make policy changes but did not make any payments to LIHS as part of the settlement, according to LIHS.
“As much as it's good to get the funds to further the work … the most important thing is that we get changes to affect things going forward,” Wilder said.
Wilder said he would like to see Long Island towns and villages require property owners to adopt fair housing policies when they apply for rental permits.
“We need structural changes to address this because, though the laws are important, they’re not enough to create the changes we need,” he said.
Three Long Island real estate firms entered into settlements to resolve allegations of housing discrimination, according to Long Island Housing Services, the Bohemia-based fair housing nonprofit that brought the complaints.
LIHS investigated the companies, which include two brokerages and a property owner, through fair housing testing, in which individuals posing as prospective renters inquired about available apartments.
The cases involved source of income discrimination, in which a housing provider treats a prospective tenant differently because they intend to use certain types of income, such as Section 8 housing vouchers, child support or Social Security payments.
LIHS has documented a string of similar cases of landlords and real estate agents discriminating against tenants who seek to use Section 8 vouchers over the past few years. On Monday, New York Attorney General Letitia James said she would fund a $3 million program that would support fair housing testing, offering nonprofits grants of up to $250,000 to conduct testing and help those seeking housing.
WHAT TO KNOW
- Long Island Housing Services reached settlements with three real estate firms following investigations into potential housing discrimination.
- The conduct involved source of income discrimination, in which housing providers turn away potential tenants who seek to use government assistance to pay rent.
- The settlements are the latest in a string of similar cases, and LIHS said local government officials should address the issue.
In the latest case, the Cassata Organization Family Limited Partnership, and several related limited liability corporations, agreed to pay $20,000 to settle complaints that they engaged in disability and source of income discrimination against renters. LIHS said it received complaints in 2019 from the nonprofit Suffolk Independent Living Organization that the landlord had refused to accept applications from its organization on behalf of clients with disabilities at the apartment complexes Oakwood Manor in Bay Shore and Nu Horizons in Copiague.
After receiving complaints from the nonprofit, LIHS investigated from December 2019 to February 2020 and found that employees refused to accept payments from government vouchers, including money from Section 8 vouchers, HUD-Veterans Affairs Supportive Housing and the state's Rapid Transition Housing Program for high-need Medicaid beneficiaries.
Renters turned away
The investigation showed people posing as individuals with housing vouchers were not told about available apartments or were not allowed to view them. Employees of the company told individuals who said they did not plan to use government assistance about the apartments.
“There were available units at the development that people could rent,” said Ian Wilder, executive director of Long Island Housing Services, “but they were just not willing to rent them, despite this being the law in Suffolk County since 2015.”
In addition to the monetary settlement, Cassata agreed to adopt a non-discriminatory fair housing policy, display signage that it complies with fair housing laws, and train its employees and agents on such laws. The organization did not respond to messages seeking comment.
LIHS said four individual complainants also settled with Cassata for an undisclosed amount.
Joseph Delgado, CEO of Suffolk Independent Living Organization, said he was grateful the company agreed to a change in behavior.
“If you have the money, whether it is in the form of a paycheck or a subsidy, to rent an apartment, you should have full accessibility like everyone else to that apartment,” he said.
Two more settlements
In addition to its settlement with Cassata, Long Island Housing Services reached settlements with two real estate brokerages last month.
H&G Realty, which has offices in Middle Island and Miller Place, agreed to pay $10,000 and adopt policy changes including displaying its compliance with fair housing laws and training its employees and agents.
H&G Realty did not return phone calls left by Newsday seeking comment.
The settlement stemmed from allegations in 2018 that the brokerage, which had listed apartment rentals at New Highway Apartments in Copiague, had engaged in source of income and disability discrimination.
LIHS also settled a case involving Kennedy Realty in Islip last month following 2020 allegations that it had discriminated based on source of income, familial status and age, which are all protected classes under local and state laws.
The nonprofit’s investigation revealed a person affiliated with Kennedy Realty told a potential renter that the landlord it was representing didn’t “want to accept any programs,” according to Wilder. In a comparison test, a person without a housing voucher was able to schedule an appointment to see the unit. But during this test, the agent told the tester the landlord “would prefer people without children,” according to LIHS.
Anthony Kennedy Sr., owner and broker at Kennedy Realty, declined to comment when reached Monday by Newsday.
Kennedy Realty agreed to make policy changes but did not make any payments to LIHS as part of the settlement, according to LIHS.
“As much as it's good to get the funds to further the work … the most important thing is that we get changes to affect things going forward,” Wilder said.
Wilder said he would like to see Long Island towns and villages require property owners to adopt fair housing policies when they apply for rental permits.
“We need structural changes to address this because, though the laws are important, they’re not enough to create the changes we need,” he said.
Jonathan LaMantia covers residential real estate and other business news on Long Island. He previously covered the business of health care for Crain's New York Business.
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Newsday Live Author Series: Bobby Flay Newsday Live and Long Island LitFest present a conversation with Emmy-winning host, professional chef, restaurateur and author Bobby Flay. Newsday food reporter and critic Erica Marcus hosts a discussion about the chef's life, four-decade career and new cookbook, "Bobby Flay: Chapter One."
