Landlord’s Leasing Policy Challenged

 A Philadelphia-area landlord will pay $25,000 to settle allegations that its employees tried to steer white tenants into safer areas of town.

HUD charged the landlord with discrimination after allegations that housing testers were directed to different neighborhoods depending upon race. Employees allegedly steered white testers posing as rental applicants to neighborhoods they described as “safer”, while directing black testers to areas agents considered “rough.”

The use of testers, housing workers posing as tenants, is a popular way for state and federal agencies to investigate and prosecute allegations of discrimination. In fact, Bryan Greene, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity says, “Testing remains one of our most effective tools for exposing unlawful housing discrimination.”

Often, investigations are triggered by a prospective renter who files a complaint. Sometimes the investigation stems from running an illegal rental ad.

This case came to HUD’s attention when the National Fair Housing Alliance (NFHA), a national fair housing organization that receives HUD funds, filed a complaint with HUD alleging that the landlord was unlawfully denying housing opportunities to African American homeseekers. Specifically, NFHA alleged that agents based in Feasterville-Trevose, northeast of Philadelphia, steered black testers to one of its properties in a high-crime, less desirable neighborhood, while telling white testers about a different property in an area they considered to be safer.

Under the terms of the agreement, the landlord will pay the National Fair Housing Alliance $25,000 in damages, get fair housing training for all of its leasing agents and managers, and establish a non-discrimination rental policy.

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