[co-author: Stephanie Kozol]*
In mid-April, Rhode Island Attorney General (AG) Peter F. Neronha announced a settlement with A.R. Building Company, Inc. (ARBC), a national real estate management and development business with properties throughout Rhode Island. The settlement resolved allegations of unfair trade practices with respect to prospective tenants.
Background
Rhode Island claimed that ARBC “charged its prospective tenants application fees, failed to provide a way for prospective tenants to submit their own screening documents, and failed to provide copies of those documents to the prospective tenants who paid ARBC to obtain them, all of which are prohibited by law.”[1] The state also alleged that ARBC subjected applicants with disabilities “to a different, more onerous application process than applicants without disabilities.”[2] Such acts violate Rhode Island’s Unfair and Deceptive Trade Practices Act and the federal Fair Housing Act, respectively.
The parties settled for $213,000 — $98,250 to affected consumers for illegal application fees and $114,750 to the state. ARBC also agreed to certain injunctive terms, including but not limited to an agreement to stop charging application fees to prospective tenants, disclose rights to prospective tenants concerning background screening documents, cease asking whether the tenant has a disability, and modify its current administrative process for tenants who request a reasonable accommodation. The settlement follows a lawsuit filed by Rhode Island in late 2024, which sought civil penalties and injunctive relief.
Why It Matters
The U.S. faces a severe housing crisis. Some estimate the shortage at 4.5 million homes.[3] Such shortages impact everything from price and availability to quality and size. It is undoubtedly an issue that attracts the attention of many voters.
Accordingly, state officials — including AGs like Neronha — have taken notice of the issue. In January 2025, Washington, D.C. Attorney General Brian L. Schwalb created a new Housing Protection and Affordability Initiative, which will — among other things — enhance enforcement of building codes, address nuisance properties, and advance affordable housing through zoning-related advocacy.[4] In New York, AG Letitia James recently investigated three real estate owners/managers for illegally denying housing opportunities to low-income renters.[5] And in Indiana, AG Todd Rokita has “led multiple legal battles on behalf of ‘severely mistreated’ renters,” including battles against public housing agencies.[6]
Given the opportunity to address issues that concern their constituents and with the potential for headline-grabbing results, we expect these enforcement measures will continue for the foreseeable future.
[1] https://riag.ri.gov/press-releases/attorney-general-neronha-announces-213000-settlement-national-real-estate-management
[2] Id.
[3] https://www.uschamber.com/economy/the-state-of-housing-in-america.
[4] https://oag.dc.gov/release/attorney-general-schwalb-announces-initiative.
[5] https://ag.ny.gov/press-release/2025/attorney-general-james-stops-illegal-housing-discrimination-capital-region.
[6] https://indianacapitalchronicle.com/2023/08/22/ag-rokita-leads-tenants-protection-movement-with-mixed-results/.
*Senior Government Relations Manager
