Mayor Adams Announces Largest Civil Rights Settlement in City History, Protecting New Yorkers from Housing Discrimination

August 22, 2024

City Secures 850 Apartments for Voucher Holders and Imposes $1 Million in Civil Penalties in Landmark Settlement Exposing Discriminatory and Exclusionary Practices by Property Management Company and Landlord

Historic Settlement Terms Include Highest Civil Penalties Ever Ordered for Housing Discrimination Case Under NYC Human Rights Law and Record Number of Homes Set Aside for Voucher Holders

NEW YORK - New York City Mayor Eric Adams and the New York City Commission on Human Rights (CCHR) today announced the largest civil rights settlement in city history for a housing discrimination settlement against Parkchester Preservation Management that will hold the company accountable for discriminating against voucher holders. CCHR imposed $1 million in civil penalties, the highest ever ordered for violations under the housing provisions of the New York City Human Rights Law and secured 850 apartment units to be set aside for housing voucher holders, the most ever secured in a CCHR settlement. With today's historic settlement, Mayor Adams has once again delivered on another key promise in his 2023 State of the City address to crack down on landlords who discriminate against tenants based on their source of income. Source of income discrimination - commonly referred to as "voucher discrimination" - occurs when people are denied housing or tenants are treated as less because they use a form of a public subsidy - including Section 8 and City Fighting Homelessness and Eviction Prevention Supplement (CityFHEPS) vouchers - to pay their rent.

"Today, our administration is using the full power of the legal system to tell New York City tenants: we've got your back," said Mayor Adams. "While we are tackling a generational housing shortage and affordability crisis, our administration is also going after the bad actors who prey on New Yorkers in the housing market. With a record settlement and 850 homes set aside to ensure voucher holders have access to affordable housing units, this announcement is a win for the everyday New Yorkers in search of safe, stable housing, and a warning sign for any predatory group trying to harm tenants."

"The city must use all tools in its toolbox to protect access to housing for New Yorkers,"said City Hall Chief Counsel Lisa Zornberg. "Robust enforcement of our housing discrimination laws is a critical tool not only to secure justice for those denied access to rental units because of their source of income, but to deter future violators. This landmark resolution, announced by the New York City Commission on Human Rights, puts the entire real estate industry on notice: Housing discrimination will not be tolerated in this city."

"Today's announcement sends a message: Source-of-income discrimination is illegal, and if New York City finds evidence of discrimination, there will be consequences," said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. "From record-breaking production of affordable housing, to our 'City of Yes' plan to open up housing opportunities across the city, to aggressive enforcement of our housing laws, our administration is delivering for New York City tenants."

"Access to safe and stable housing is key for New Yorkers to thrive," said CCHR Deputy Commissioner of Law Enforcement Katherine Carroll. "This settlement is the culmination of a long journey toward justice for New Yorkers who experience source of income discrimination and a message to housing providers throughout New York City. There is no room for housing discrimination in our city. CCHR will continue to work tirelessly to enforce the law and reach meaningful resolutions aimed at restoring those impacted by discrimination."

"I commend Mayor Eric Adams and CCHR for their historic achievement in securing the largest civil rights settlement in our city's history," said New York City Councilmember Nantasha Williams, chair, Committee of Civil and Human Rights. "This landmark $1 million penalty and the setting aside of 850 apartment units for housing voucher holders sends a powerful message that source of income discrimination has no place in New York City. The CCHR's action exemplifies our city's unwavering commitment to protecting the right of all New Yorkers to safe and fair housing. This settlement is not just a victory for the 850 families who will benefit directly, but a strong affirmation of our dedication to upholding the principles of equity and justice across all communities."

The landmark case against Parkchester Preservation Management involved the exclusion of renters with vouchers from the apartment complex by requiring minimum income requirements, non-refundable deposits, and other requirements for tenancy that are designed to discriminate against voucher holders. Parkchester Preservation Management required housing applicants to have specific levels of income in relation to the monthly rent of a unit and would not consider the full voucher amount as part of the applicant's income. This practice made it nearly impossible for anyone with a rental subsidy to qualify for a unit. CCHR concluded that these practices sought to discriminate against voucher holders and keep them from obtaining housing. Of the over 6,000 rental units in Parkchester Preservation Management, only a small fraction were occupied by voucher holders.

Source of income discrimination has been illegal in New York City since 2008 under the city's Human Rights Law, but it remains one of the most common forms of housing discrimination reported to CCHR. In resolving housing discrimination cases, CCHR works to ensure meaningful progress and protections for tenants, including through guaranteed access to housing opportunities, monetary damages for complainants, and civil penalties. CCHR can also mandate measures to help protect against any future discriminatory practices, including requiring trainings, setting aside a certain number of units for voucher holders, incentivizing real estate brokers to connect voucher holders to housing opportunities, and ensuring that CCHR can monitor ongoing practices.

In his 2023 State of the City, Mayor Adams unveiled a multimillion-dollar investment to address source of income discrimination, including plans to contract with an external provider to identify instances of housing discrimination and support related enforcement work. The New York City Department of Housing Preservation and Development (HPD) launched a landmark pilot program with the Housing Rights Initiative (HRI) to both identify source of income discrimination and inform the city's larger enforcement efforts. Later this year, HPD will issue a new, expanded contract for fair housing testing and related efforts to help root out source of income discrimination across the city.

CCHR works proactively to educate real estate entities across diverse communities to prevent discrimination before it occurs. In September 2023, CCHR launched a first-of-its-kind partnership with Fordham University's Real Estate Institute, resulting in a continuing education course to stop illegal voucher discrimination. By taking CCHR's class, realtors and brokers receive 1.5 credits towards the renewal of their license, which is required every two years. Upcoming sessions can be found on CCHR's website.

Today's announcement is part of an ongoing commitment by the Adams administration to develop policies and invest in programs to support tenants. As part of a 2024 State of the City commitment, the administration launched the Tenant Protection Cabinet, a multi-agency collaboration to better serve renters in New York City by developing policies and long-term strategies that support tenants and ensure safer, fairer housing conditions. Last summer, the New York City Public Engagement Unit (PEU) launched a live operator tenant helpline to provide immediate support to New York tenants who face potential eviction, landlord harassment, or unacceptable living conditions. New Yorkers seeking the PEU Tenant Helpline can call 311 and be referred to a live operator.

Mayor Adams has taken strong enforcement action against landlords who do not properly maintain their properties, most recently obtaining over $4 million and the appointment of a 7A administrator (an individual appointed by a court to operate privately-owned buildings that have conditions that are dangerous to the tenants' life, health, and safety) against a single landlord with a portfolio of buildings.

New Yorkers who have witnessed or experienced discrimination can contact CCHR at 212-416-0197 or by filing a report online.

"Today's announcement is a major victory for tenants' rights in New York City," said Public Advocate Jumaane D. Williams. "I commend the administration and CCHR for this historic settlement, which sends a clear message that discrimination will not be tolerated, and that New Yorkers regardless of income source have a fair chance at securing safe, affordable housing."

"We are grateful to Mayor Eric Adams and the New York City Commission on Human Rights for securing the largest civil rights settlement in our city's history," said Bronx Borough President Vanessa L. Gibson. "Today's announcement sends a clear message to unscrupulous landlords that they will be held accountable for discriminatory practices that unfairly target individuals using Section 8 and CityFHEPS housing vouchers. It is imperative that every New Yorker has fair and equitable access to affordable, safe, and quality housing, and our city has just reaffirmed that fundamental right."

"As a civil rights lawyer, I dedicated my legal career to combatting all forms of discrimination," said New York State Assemblymember Jenifer Rajkumar. "Today, we make historic strides in ending housing discrimination with a record $1 million settlement for discrimination against housing voucher holders. Our CityFHEPS and other vouchers are an important tool to uplift families out of homelessness and allow them to stand on their own two feet. It is also sound fiscal policy, saving us at least $1,500 per week for each family that no longer needs to stay in the shelter system. By ending discrimination against voucher holders, we will ensure a housing market that welcomes all New Yorkers."

"Parkchester Preservation Management's agreement to eliminate minimum income requirements for tenants with rental subsidies is a critical step forward," said Elizabeth Grossman, executive director and general counsel, Fair Housing Justice Center. "This settlement puts us on a path toward opening access to thousands of apartments in the Bronx and to reducing the threat of homelessness for New Yorkers."

"We at Housing Rights Initiative applaud the announcement of this historic settlement," said Aaron Carr, founder and executive director, HRI. "By imposing such a large penalty and securing stable homes for 850 households with vouchers, the Commission on Human Rights and the New York City Mayor's Office are sending a clear message to all landlords and brokers that discrimination on the basis of an applicant's source of income is unacceptable in this city, and violators like Parkchester Preservation Management will be held accountable to the full extent of the law."

"Today's settlement is a victory for all voucher holders," said Amy Blumsack, director of organizing and policy, Neighbors Together. "It shows that when resources and will are aligned, discriminatory landlords will receive more than a slap on the wrist; justice will be served and landlords who break the law will experience consequences that match their size and the scope of discrimination. Neighbors Together applauds CCHR for their work, and we look forward to them holding offenders accountable and securing restitution for voucher holders in a meaningful way."

"As someone who has built a bridge between voucher holders and landlords who care, it's horrible to hear stories of multitudes of voucher holders who are unable to get housed because a property owner is discriminating against them," said Shams DaBaron, housing and homelessness advocate. "It's a horrible thing to assume that because someone has a voucher, they will make a bad tenant. Thankfully, Mayor Adams and his administration along with advocates who fight against voucher discrimination have successfully pursued those bad actors and are bringing justice for so many in need."

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