I was in the process of updating the online fair housing continuing education courses offered by my school (www.123ConEd.com), when I came across this recent Fair Housing Act case. Because Fair Housing is such an important topic, I thought that I'd post a summary of this case.
On January 18, 2007, the United States Department of Justice settled a fair housing retaliation case against the owners, operators and managers of Fairway Trails Apartments, an apartment complex located in Ypsilanti, Michigan. The case was brought under the Fair Housing Act against Nicole Morbach (property manager), Benchmark Management Corporation (management company), Benchmark Michigan Properties, Inc. (general partner), and Fairway Trails Limited, L.P. (owner of apartment complex).
The complaint alleged that the defendants retaliated against tenant Harry Tyus when they evicted him after he won a reasonable accommodation request against Fairway Trails Apartments. HUD’s investigation showed that Mr. Tyus requested a reasonable accommodation on his lease agreement to ensure timely rent payment. Mr. Tyus, who was disabled, asked the property manager if he could pay his rent on the third Wednesday of each month instead of the first day of each month. The change would have coincided with Mr. Tyus’ Social Security disability payments and would have allowed him to avoid paying the $50 late fee monthly.
After checking with the corporate office, the property manager turned down Mr. Tyus’ request. Mr. Tyus immediately sought help from the Fair Housing Center of Southeastern Michigan. Fairway Trails Apartments responded to a Center request for reasonable accommodation by stating, “doing so would result in extending a preference,” and denied the request.
In July 2004, when his rent was not paid on time Fairway Trails Apartments started the process to evict Mr. Tyus. Despite the rent and the late fee being paid on July 22, Fairway Trails Apartment continued the eviction process.
In October 2004, following a bench trial on the eviction proceeding in Washtenaw County Circuit Court, the trial judge ruled in favor of Mr. Tyus and agreed that he should be allowed the accommodation he requested. The judge also ruled that Fairway Trails Limited L.P. was not entitled to a late fee for the previous two months and that the pay date would be reset. The judge denied the eviction and allowed Mr. Tyus to stay in his apartment. Two days later, the defendants notified Mr. Tyus that they would not renew his lease.
Mr. Tyus filed a complaint with HUD on April 18, 2005. The Fair Housing Center of Southeastern Michigan assisted Mr. Tyus with his complaint. HUD investigated Mr. Tyus’ complaint, and on March 21, 2006, HUD issued a determination of reasonable cause. On April 7, 2006, Mr. Tyus elected to have the case resolved in federal court. The Department of Justice then filed a lawsuit on behalf of Harry Tyus.
Under the terms of the settlement, the defendants were required to pay Mr. Tyus $50,000, to attend fair housing training, and to comply with record-keeping and reporting provisions for three years.
It is important for all real estate professionals to remember that the Fair Housing Act prohibits retaliation against individuals when those individuals exercise their rights under the law. As evidenced by this case, real estate professionals can face severe fines and penalties as a result of violations of the Fair Housing Act.
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To learn more about Fair Housing issues in Michigan (and many other topics affecting Michigan real estate professionals), please visit us at www.123ConEd.com. 123 ConEd LLC (www.123ConEd.com) is a leading online provider of continuing education courses to real estate professionals in Michigan. Our online Michigan real estate con ed courses are fully approved and properly certified by the Michigan Department of Labor & Economic Growth. All of our courses are designed to offer our students the most information, as quickly and economically as possible.
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