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WASHINGTON (AP) — Three real estate firms have been fined $10 million for illegally discriminating against tenants by using government housing vouchers in the Washington state capital. This is the largest civil penalty in U.S. history for housing discrimination cases, said Washington Attorney General Carl Racine. .
“Landlords breaking the law and refusing to accept vouchers are reminiscent of Jim Crow-era housing discrimination policies aimed at limiting opportunities for black residents,” Racine announced the settlement Thursday. “We are sending a message to all landlords: If you follow this playbook, you will face the consequences.”
Some corporate executives are also included in the settlement.
Racine announced in 2020 that DARO Management Services, DARO Realty, and Infinity Real Estate would refuse to provide housing to low-income applicants using housing vouchers or impose additional illegal fees and requirements. I filed a lawsuit alleging that I violated local civil rights and consumer protection laws by doing so.
Three interconnected companies own and manage units in 15 buildings in Washington state. As part of the settlement, the companies have agreed to cease management of residential properties in the city and expect to hand over control of the properties within 18 months. Additionally, DARO management president Carissa Barry will relinquish her local real estate license for 15 years.
A call to DARO Management for comment on the settlement was not immediately returned.
Racine said his investigation found multiple emails between company executives showing a clear intent to block future renters using vouchers from the city’s Housing Choice Voucher Program, commonly known as Section 8. It said it had uncovered “mountains of evidence” including DC is black, said Racine.
Under the terms of the district’s limited status as a nonstate, Racine’s office does not have the authority to prosecute some categories of felony or serious misdemeanor crimes. It will be processed by the Federal Attorney’s Office. However, Racine was able to file a lawsuit against DARO and its affiliates for violating Washington’s consumer protection and human rights laws, which prohibit housing discrimination based on her income.
“Vouchers are an important tool to help vulnerable residents,” Racine said. “Too many residents, especially people of color, face serious obstacles to finding safe and affordable housing. This movement is not the result of market forces alone. and often due to illegal and unethical business models.”
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