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In a recent development, a New York state judge has declined to dismiss a lawsuit targeting a brokerage and property manager, among others, over allegations of discrimination against individuals utilizing federal Housing Choice vouchers.

NYC Real Estate Cos Voucher Bias Suit : Allegations and Ruling

Justice Paul A. Goetz's ruling on Feb. 26 upheld the claims made by the nonprofit Housing Rights Initiative. The lawsuit, filed in May 2022, accuses over two dozen real estate companies of discriminatory practices. The nonprofit alleges that these companies impose unjust income requirements on voucher holders, effectively shutting them out of the rental market.

According to the ruling, Housing Rights Initiative employed a civil rights tester in February 2020 to investigate discriminatory practices. The tester inquired about a Queens apartment listed at $1,800 a month. The broker, Proper Real Estate LLC, reportedly informed the tester that the property manager, 86-31 57th Avenue LLC, demanded voucher holders' incomes to be nearly 40 times the monthly rent.

Justice Goetz's ruling emphasizes the discriminatory nature of such policies, stating that they disproportionately affect voucher holders. He ruled that the nonprofit has standing to sue under both the New York State Human Rights Law and the New York City Human Rights Law.

NYC Real Estate Cos Voucher Bias Suit : Legal Standpoints

The judge dismissed arguments from the real estate companies that Housing Rights Initiative lacked standing to bring the suit because it wasn't a voucher holder. Instead, Justice Goetz acknowledged the nonprofit's efforts in testing and exposing discriminatory practices as a legitimate basis for standing.

Citing legal precedents such as the U.S. Supreme Court's 1982 decision in Havens Realty Corp. v. Coleman, Justice Goetz affirmed that organizations confronting discrimination through resource-draining activities have standing to pursue legal action.

Reaction and Progress

Representatives from Proper Real Estate and 86-31 57th Avenue did not respond to requests for comment following the ruling. However, Housing Rights Initiative's counsel expressed satisfaction with the court's decision, highlighting the importance of organizations having standing to combat discrimination effectively.

The lawsuit has seen progress, with several real estate entities already dismissed from the case after reaching settlements with the nonprofit. Negotiations are ongoing with others, including Corcoran Group LLC.

Conclusion

The case underscores ongoing challenges faced by voucher holders in accessing fair housing opportunities in New York City. With legal battles continuing, the outcome of this lawsuit could potentially reshape practices within the city's real estate sector.