NYC Landlord Faces $1 Million Penalty for Discriminatory Practices
Known for its expensive cost of living, New York City’s average rental costs are already well above average, requiring some Big Apple residents to rely on rent subsidies to keep a roof over their heads. However, the owner of an expansive East Bronx housing complex is accused of discriminating against low-income renters who rely on housing subsidies, which cost the Bronx landlord a $1 million penalty in a recent settlement.
According to the city’s Commission on Human Rights, as well as the nonprofit Fair Housing Justice Center, a settlement was reached with the Bronx landlord, Parkchester Preservation Management, after a year-long investigation that proved the company engaged in housing discrimination. The investigation found that Parkchester Preservation Management blocked tenants with housing subsidies from renting more than 6,000 apartments across its development.
Current state and city laws prohibit landlords from denying tenants because they use government aid to pay for rent, a common practice known as source-of-income discrimination that penalizes prospective tenants for using state housing support.
Parkchester Preservation Management’s website claims the complex is “one of the safest communities in NYC,” with round-the-clock security, proximity to the 6 train, and on-site parks, schools, shops, and medical offices, as well as an array of restaurants.
Opening in the 1940s, the Bronx complex now houses a diverse blend of working-class and middle-income renters, but city investigators found that just a fraction of Parkchester’s residents use housing vouchers to pay rent, despite apartment prices falling within rates set by the city and federal subsidy programs.
Drawing attention to Parkchester’s illegal practices, a mother of two sued the company after the income requirement prevented her from qualifying for an apartment with the company, even though the city’s housing program would have entirely covered her rent.
Sara Zuiderveen, a senior adviser with the Department of Social Services, provided testimony in the lawsuit, noting that the complex had never accepted a tenant who used a city-issued subsidy known as CityFHEPS to pay rent.
“That is particularly striking because Parkchester’s units fall well below the monthly rent cap for CityFHEPS vouchers,” Zuiderveen wrote.
Settlement Details and Implications for Housing Practices
Thursday’s settlement announcement comes two years after a state judge ordered Parkchester to cease requiring prospective tenants with housing vouchers to prove they earned at least $62,000 a year to qualify for an apartment—a rule that would effectively lock them out of the complex.
Under the new settlement, Parkchester agreed to eliminate minimum income requirements for voucher holders.
On top of the $1 million penalty, the recent settlement also requires the company to reserve 850 units for tenants with government-funded housing vouchers, including the federal Section 8 program.
Also, as part of the agreement, the company will pay up to $63,750 in damages to applicants who were denied apartments due to Parkchester’s discriminatory housing practices. Parkchester will also pay $150,000 to the Fair Housing Justice Center, which began the investigation back in 2016.
The Commission on Human Rights’ acting deputy commissioner, Katherin Carroll, stated that the agreement was the largest on record for the agency, which is designated to clamp down on housing discrimination. Carroll noted that Parkchester’s penalties are “a message to housing providers throughout New York City.”
Urging state and city officials to investigate and punish source-of-income discrimination among landlords, managers, and brokers advocates for low-income tenants, who believe that awareness and heftier consequences for the illegal practice will hold these parties more accountable.
“This announcement is a win for the everyday New Yorkers in search of safe, stable housing, and a warning sign for any predatory group trying to harm tenants,” Mayor Eric Adams said in a statement.
