[co-author: Stephanie Kozol]*
Maryland Attorney General (AG) Anthony G. Brown recently announced three settlements with real estate and property management companies, resulting in more than $310,000 in combined civil penalties and restitution. Brown alleged that the property management and real estate companies discriminated against various tenants that utilized housing vouchers or had criminal records, in violation of federal and state fair housing laws.
What Happened
The Maryland Civil Rights Division investigated three companies accused of violating Maryland fair housing laws and reached settlements with the companies that resulted in civil penalties, modifications to company procedure, and increased employee training.
Maryland Management Company, Inc. (MMC), a property management company, was investigated for allegedly discriminating against applicants based on their source of income, including the Housing Choice Voucher Program. The $180,000 settlement requires MMC to pay $90,000 toward a compensation fund for disaffected households, along with an additional $90,000 in civil penalties. MMC must also establish a rental assistance policy approved by AG Brown and provide Fair Housing Training to their staff.
Similarly, Habitat America, LLC (Habitat America), a real estate company, was investigated for allegedly discriminating against certain tenants by offering higher rental rates for tenants utilizing vouchers. The settlement requires Habit America to reimburse affected households and pay restitution ranging from $1,000 to $2,500 per affected household and a civil penalty of $105,000. As of the date of the settlement, Habitat America has paid $39,700.42 in restitution to its tenants and $8,616 to the Housing Authority of the City of Frederick. In addition, Habit America must also waive any outstanding balances for the affected households and modify its policies and trainings to ensure that independent contractors, management, and employees avoid violating federal and state fair housing laws.
American Management II, LLC (American Management), a property management company, was investigated for allegedly banning applicants with felony convictions from its rental applications. The settlement requires American Management to pay $25,000 in civil penalties and waive application fees for applicants with felony convictions. Further, American Management must implement a criminal history screening policy which provides individualized assessments to applicants which is aimed at reducing racial inequities and increasing access to housing generally.
Why It Matters
These settlements follow a recent trend of AG enforcement of housing discrimination claims. State AGs are stepping up to fill what they perceive to be a void left by a lack of federal enforcement. In the press release announcing the settlements, Brown emphasized his office’s role in enforcing the Fair Housing Act “regardless of the policies or priorities of the federal government.” The settlements follow reports that the federal government plans to reduce staffing in the federal Office of Fair Housing and Equality Opportunity, which oversees enforcement of the federal Fair Housing Act.
Maryland property management and real estate companies should be aware of their obligations under Maryland fair housing laws. In 2020, Maryland amended its state fair housing law to add protections against “source of income” discrimination, which includes “any lawful source of money paid directly or indirectly to or on behalf of a renter or buyer of housing.” This includes discrimination based on usage of the Housing Choice Voucher Program. Maryland is only one of several states containing these provisions, and Brown’s settlements with these companies signal that AGs will enforce these new provisions.
*Senior Government Relations Manager
