Los Angeles, CA – November 3, 2023 – The Southern California Housing Rights Center (“HRC”) announced today the settlement of a federal lawsuit on behalf of the organization and 16 households who claimed that their landlord, forced out longtime Latinx families from their rent-controlled apartments in the Koreatown and Highland, CA in violation of fair housing and landlord-tenant laws.
Filed in the Los Angeles Federal District Court in February, 2022, the complaint, alleged that [the landlord] acquired older apartment buildings, predominantly occupied by Latinx families, for gentrification by misusing the cash for keys process, violating the Los Angeles tenant anti-harassment ordinance, and discriminating against tenants based on national origin and familial status. Plaintiffs claimed that after they acquired rent-controlled apartment buildings, the landlord immediately started unpermitted construction and withheld repairs. Plaintiffs allege the landlord demanded that longtime tenants, mostly Latinx families, accept “cash for keys” agreements or face eviction and misrepresented to tenants that their building was slated for demolition. Plaintiffs also allege that once [the landlord] displaced a family from a building, the landlord renovated the vacated unit, rebranded the buildings, and advertised the apartment at a higher rental rate, exclusively online, and only in English.
The landlord maintains that he/she agreed to settle the case to avoid costly and protracted litigation and that he/she is a responsible real estate owner, operating with integrity, and ensuring that all residents are treated fairly. [They stated] that the company is dedicated to addressing resident concerns promptly and in a manner that fosters a positive and inclusive living environment for all residents and to provide affordable housing options to tenants of all backgrounds.
The Settlement
Under the terms of settlement ,[the landlord] will pay a global amount of $2,200,000, inclusive of plaintiffs’ damages and attorneys’ fees and costs, and has agreed to take several remedial steps to address the discriminatory claims including:
- Providing all current and future tenants literature in English and Spanish that explains their rights under federal, state, and local fair housing and landlord/tenant laws, including the Los Angeles Tenant Anti-Harassment Ordinance.
- Attending annual training on anti-discrimination laws and the Los Angeles Rent Stabilization Ordinance (“RSO”).
- Offering at least 10% of their units at a rental rate priced for Section 8 tenants.
- Advertising all of their apartments for rent in Spanish on www.elclasificado.com and including the phrase “families with children welcome” in all future rental advertisements.
- Restricting construction within apartment buildings to 8 am to 6 pm, Monday through Friday, absent special circumstances.
- Providing literature to tenants in Spanish and English – at least seven days before making a cash for keys offer – that explains the tenant’s fair housing and RSO rights, that accepting a cash-for-keys agreement is completely voluntary, that their building is not being demolished, and that the tenant’s rights will not be affected if they refuse a cash-for-keys offer to move out.
- Paying for a neutral building inspector to survey each plaintiff’s apartment and generate a list of repairs that they will complete.
- Barring an employee who plaintiffs complained about from soliciting cash-for-keys agreements from tenants.
The Housing Rights Center and the 16 households were represented by: Rodney Leggett and Zack Frederick of the Housing Rights Center in Los Angeles; Claudia Medina of the Medina Law Firm, a Los Angeles law firm that specializes in tenant rights litigation; and Christopher Brancart, assisted by Haley Parsley, of Brancart & Brancart, a Pescadero, California law firm that specializes in fair housing litigation on behalf of plaintiffs.
[The landlord] was represented by Charles Harris and Lauren Becker of Lewis Brisbois Bisgaard & Smith, LLP.
Landlord to Pay $147,000
for Refusing Section 8
LOS ANGELES, CA – OCTOBER 27, 2023 — The Housing Rights Center (HRC)
successfully settled a landmark source of income discrimination case in the Los Angeles area on
behalf of Plaintiff Rhina Tejada, a 78-year-old tenant in the Los Angeles area who suffered
discrimination when her landlord unlawfully refused to accept her Section 8 Housing Choice Voucher.
As a part of the settlement agreement, the defendants agreed to pay $147,000 in damages and attorney’s fees.
Ms. Tejada, a 78-year-old individual on a fixed income, had lived in her Los Angeles apartment
for twenty-two years. In fall 2019, after waiting for many years, she finally received a Section 8
Housing Choice Voucher to subsidize her rent.
When Ms. Tejada attempted to use a Housing Choice Voucher for her residency, her landlord refused to accept it. Ms. Tejada informed the landlord that this practice was illegal under source of income laws, yet the landlord still refused to complete forms and sign documents necessary for Ms. Tejada to use her voucher, ultimately delaying Ms. Tejada’s voucher acceptance for over a year.
Further investigation by HRC demonstrated additional discriminatory practices against Section 8 voucher recipients, including advertising “No Section 8” on their housing listings. The Housing Rights Center and Ms. Tejada subsequently filed a lawsuit against the landlord in December, 2021.
Housing Rights Center’s Executive Director, Chancela Al-Mansour, stated: “We hope this casemakes it absolutely clear—it is illegal to deny a Section 8 or government subsidy for housing in Los Angeles and in the entire state of California. Landlords who refuse Section 8 are liable not only for extra costs incurred by tenants due to unlawful delays, but also for the emotional harm and distress caused by their discriminatory acts.”
Although local ordinances protecting voucher recipients from discrimination have been in place
in the city of Los Angeles since 2019, statewide protections under the Fair Employment and
Housing Act (“FEHA”) went into effect in January, 2020. These laws protect against source of
income discrimination and explicitly prohibit discrimination against Section 8 voucher
recipients. Prohibited practices under source of income laws include outright refusal of housing
choice vouchers, advertising “No Section 8,” and delaying paperwork and inspections required in
the approval process.
As part of the settlement agreement, the defendants agreed to adopt a written Section 8 policy complying with fair housing laws, attend fair housing training, state in all future rental advertisements that the property accepts Section 8, and to place all future vacancies for the next three years on www.affordablehousing.com.
The Housing Rights Center is a non-profit organization established in 1968 to actively support and promote equal opportunity and freedom of residence to all persons without regard to their race, color, religion, gender, sexual orientation, national origin, familial status, disability, marital status, ancestry, age, source of income, or other characteristics protected by law. HRC engages in activities including outreach and education, testing and investigation, and legal advocacy to identify barriers to fair housing and to counteract and eliminate discriminatory housing practices in Los Angeles and Ventura Counties.