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Financial Services Law Insights and Observations

HUD Charges Colorado Landlords with Violations of the Fair Housing Act

HUD FHA

Consumer Finance

On October 7, HUD announced a September 24 Charge of Discrimination against a group of Colorado landlords for allegedly “steering” families with children to apartments located at the rear end of the apartment building, an alleged violation of the FHA. According to HUD, from September 2013 to February 2014, Complainant DMFHC, a Colorado non-profit organization dedicated to promoting equal housing opportunities throughout the Denver, Colorado area, conducted various tests to show that respondents discriminated against families with children by making units in the front of the apartment building unavailable to them. HUD alleges that, “Respondents violated the Act by restricting the housing choices of families with children and perpetuating segregated housing patterns within the Subject Property by assigning families with children to the rear building.” The charge, which assesses a $16,000 civil money penalty fee for each violation of the FHA, will be heard by a United States Administrative Law Judge, unless a party elects to have the case heard in federal district court.