A landlord who owns numerous apartment buildings in Brooklyn and Upper Manhattan has been ordered to reimburse potential tenants whom they unlawfully turned away when they expressed their intention to use government housing vouchers as a means of rental payment. As part of an agreement reached with New York Attorney General Letitia James, Shamco Management Corp., the property owner and manager, will also be required to lease multiple apartments to individuals utilizing vouchers such as Section 8 or CityFHEPS.
New York has strict laws that prohibit discrimination against potential tenants based on their source of income, including public assistance. According to the Attorney General (AG), Shamco representatives were found to have engaged in various tactics to discriminate against individuals with vouchers. This includes unjustly labeling voucher-holders as “unqualified,” inflating rents above the maximum amount covered by vouchers, providing false information about apartment availability, or simply ignoring their inquiries.
Shamco has been ordered to pay $400,000 in restitution and take action by renting a minimum of 65 apartments to voucher users within the next year. Failure to comply will result in financial penalties. Additionally, Shamco will be required to provide regular progress reports to James’ office.
“Housing is a fundamental human right, and it is crucial that everyone has equal access to housing, irrespective of their income source,” James emphasized in a statement.
In a statement, Michelle Phillips, an attorney from the law firm Jackson Lewis, representing Shamco, said:
“We firmly deny any wrongdoing and stand by our assertion that the allegations raised by the AG’s office lack corroboration, and furthermore, Shamco was not given a complete opportunity to address the complaint’s allegations. Throughout the investigation, Shamco demonstrated full cooperation with the NY AG’s office, ultimately deciding to enter into an agreement rather than continue incurring costs associated with litigation. This decision was made after three years of steadfastly defending our lawful policies.”
According to her, their practices are fair and just. They make rental decisions based on legitimate criteria, without considering a prospective tenant’s source of income or any other protected group.
Aaron Carr, the founder of Housing Rights Initiative, has highlighted the significance of Attorney General Letitia James’ recent action. This action serves as a clear message to all landlords regarding their responsibilities towards voucher-holders. These individuals are typically low-income and are required to pay 30% of their income towards rent, with the remaining portion covered by government agencies. Carr’s organization previously played a pivotal role in a settlement with the owner of Yorkville Towers on the Upper East Side, emphasizing the importance of ensuring fair treatment for voucher-holders.
According to Carr, going after not only the small players but also the big guys is crucial in creating a deterrent effect. He emphasizes that the question is not just about whether you get caught, but rather when you get caught.
