HUD charges Rhode Island landlord and realty company with violating Fair Housing Act

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‘No children’ online ad and refusal to rent allegedly discriminated against families with children

WASHINGTON, DC – July 21, 2009 – (RealEstateRama) — The U.S. Department of Housing and Urban Development today announced that it has charged a Cranston, Rhode Island, landlord and real estate company with two separate acts of housing discrimination. HUD charged Velna Marti Irrevocable Income Trust, its owner and two real estate professionals at RE/MAX Five Star with violating the Fair Housing Act by refusing to rent to families with children.

The Fair Housing Act prohibits a housing provider from discriminating based on race, color, national origin, religion, sex, familial status or disability. The law includes refusing to rent to families with children (unless the housing meets certain requirements for housing for older persons) and making or publishing, in print or on-line, any statement or advertisement that states a limitation against families with children.

According to HUD’s charge, in March of 2008, respondents Cheryl Lee Brill and Wally Wetherbee, a realtor and administrator for Re/Max, advertised for rent on craigslist.com a house owned by respondent Velna Marti Irrevocable Income Trust. The ad stated, “This is an immaculate, spacious three-bedroom house for rent…No cats, dogs, or children please.” Two families with children responded to the advertisement. When they mentioned they had children, Wetherbee allegedly refused to show them the property, saying that the owner would not rent to families with children. The owner eventually rented the house to three men without children.

“The discriminatory language that was used in the ad, along with the agents’ disregard for the law, denied two families with children the opportunity to rent the home of their choice,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity (FHEO). “This, simply, is unacceptable. No family should be denied housing because they have children. And landlords and real estate professionals may not use the Internet to avoid the Fair Housing Act. HUD is committed to enforcing the law, and real estate agents must follow the law, not their clients’ discriminatory desires.”

The HUD charges will be heard by a United States Administrative Law Judge unless any party to the charge elects to have that case heard in federal district court. If an administrative law judge finds after a hearing that discrimination has occurred, he may award damages to the complainant for its loss as a result of the discrimination. The judge may also order injunctive relief and other equitable relief to deter further discrimination, including retrofitting of the complexes, as well as payment of attorney fees. In addition, the judge may impose civil penalties in order to vindicate the public interest. In the event of an election, a federal district court judge may also award punitive damages to the complainant.

FHEO and its partners in the Fair Housing Assistance Program investigate approximately 10,500 housing discrimination complaints annually. People who believe they are the victims of housing discrimination should contact HUD at (800) 669-9777 (voice), (800) 927-9275 (TTY). Additional information is available at website.

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HUD is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

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