Justice Department Secures Agreement To Resolve Allegations That Former Burlingame Landlord Discriminated Against Family With Two Young Children

SAN FRANCISCO - The Justice Department announced that it reached a settlement with a former Bay Area landlord to resolve allegations that she discriminated against a couple and their two minor children based on their familial status, in violation of the Fair Housing Act (FHA). Under a consent order that was approved today by the Honorable Maxine M. Chesney, U.S. District Judge, Melinda Bautista Teruel is required to pay $137,500 to the couple.

Teruel sold the Burlingame property after the family's tenancy. The consent order also requires that, if Teruel acquires another residential rental property over the next three years, she must undergo training on FHA compliance, develop and implement a nondiscrimination policy and complaint procedure, hire a property manager, and submit regular reports concerning her compliance with the order.

"Housing providers must always comply with federal civil rights laws. They cannot discriminate based on national origin, race, or other protected characteristics, including familial status," said Ismail J. Ramsey, U.S. Attorney for the Northern District of California. "This agreement demonstrates our office's commitment to enforcing the Fair Housing Act and ensuring that all families have access to fair and inclusive housing."

"The U.S. Department of Housing and Urban Development (HUD) applauds today's action and remains committed to working with the Department of Justice to enforce our nation's fair housing laws," said Diane M. Shelley, HUD's Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. "We will continue to work with our partners in protecting against harassment and discrimination of families with children."

Filed on July 17, 2023, the Department's lawsuit alleges that Teruel managed a two-story, seven-unit apartment complex in Burlingame in which the family resided from 2017 to 2020. According to the complaint, when Teruel learned the couple was expecting their first child, she told them that a one-bedroom apartment is not for families; and when she learned they were expecting their second child, she threatened to evict the family. The lawsuit alleges that Teruel told the couple that families cause more wear and tear and repeatedly pressured them to move from their one-bedroom unit into a larger apartment. The lawsuit also alleges that Teruel falsely claimed damage to the unit after the couple told Teruel that discrimination against families is illegal and that the family vacated the unit because of Teruel's continuing pressure.

After vacating the apartment, the couple filed a complaint with HUD. Based on its investigation, HUD determined that Teruel violated the FHA by discriminating based on familial status and issued a charge of discrimination. HUD then referred the matter to the Justice Department when the couple chose to have the matter decided in federal court. The matter was handled jointly by Assistant U.S. Attorneys David DeVito and Kelsey Helland for the Northern District of California and the Civil Rights Division.

The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status (includes making housing unavailable to families with children, making discriminatory statements about them, and harassing tenants because they are pregnant or have young children). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals may report harassment or other forms of housing discrimination to the department by calling 1-833-591-0291, emailing [email protected], or submitting a report online at civilrights.justice.gov. Individuals may also report such discrimination to HUD by calling 1-800-669-9777 or filing a complaint online at www.hud.gov/program_offices/fair_housing_equal_opp/online-complaint.

The claims resolved by the settlement are allegations only. There has been no determination of liability.