Defendants.
_______________________________
PLAINTIFF UNITED STATES'
FIRST AMENDED COMPLAINT
The United States alleges:
This action is brought by the United States to enforce
the provisions of the Fair Housing Act, Title VIII of the Civil
Rights Act of 1968, as amended by the Fair Housing Amendments Act
of 1988, 42 U.S.C. § 3601 et seq.
Jurisdiction and Venue
This Court has jurisdiction over this action pursuant to
28 U.S.C. § 1345, 42 U.S.C. § 3612(o), and 42 U.S.C. § 3614(a).
Venue is proper in that the claims alleged herein arose
in the Richmond Division of the Eastern District of Virginia.
Parties
Wedgewood Village Apartments ("the subject property")
is a 160-unit apartment complex located at Needham Court in
Richmond, Virginia. The units located within this apartment
complex are "dwellings" within the meaning of 42 U.S.C.
§ 3602(b).
At all times relevant to this action, defendant Richmond
10-72 Ltd. has been the owner of Wedgewood Village Apartments.
It is legally responsible for the management of Wedgewood Village
Apartments. Richmond 10-72 Ltd. maintains its principal place of
business at 4312 Westport Road, Columbus, Ohio.
At all times relevant to this action, defendant
Provident Group Co. has been the sole General Partner of Richmond
10-72 Ltd. It is legally responsible for the management of
Wedgewood Village Apartments. Provident Groups Co. maintains its
principal place of business at 4312 Westport Road, Columbus,
Ohio.
At all times relevant to this action, defendants
Provident United, Inc., Michael Braunstein and John W. Helgerson
have been General Partners of defendant Provident Group Co. They
are legally responsible for the management of Wedgewood Village
Apartments. In addition, at all times relevant to this action,
defendant Michael Braunstein has been president of defendant
Provident United, Inc. He is legally responsible for the
management of Wedgewood Village Apartments as a consequence of
this position. Defendants Provident United, Inc., Michael
Braunstein and John W. Helgerson maintain their principal place
of business at 4312 Westport Road, Columbus, Ohio.
At all times relevant to this litigation, defendant Rita
Baines Lewis was employed as the Residential Manager of Wedgewood
Village Apartments. In this capacity, she maintained the
applicant files for Wedgewood Village Apartments and made tenant
selection decisions. She resides in Quinton, Virginia.
I. Individual Violation (H.O.M.E.)
Plaintiff realleges and herein incorporates by reference
the averments set forth in paragraphs 1-8, above.
Housing Opportunities Made Equal of Richmond, Inc.
("H.O.M.E.") is a private non-profit fair housing organization
located at 1218 West Cary Street, Richmond, Virginia 23220. It
was established in 1971 to ensure the right of every individual
to the decent and affordable housing of his or her choice.
H.O.M.E. engages in activities to identify barriers to fair
housing and to help counteract and eliminate discriminatory
housing practices. In support of its goals, H.O.M.E. engages in
a variety of education, counseling and referral services and
conducts tests for housing discrimination throughout the Richmond
metropolitan area. In doing so, H.O.M.E. represents the
interests of all citizens to be free of discrimination. In
addition, it provides support and assistance to victims of
housing discrimination.
On or about March 26, 1993, H.O.M.E. filed an
administrative complaint with the Secretary of the United States
Department of Housing and Urban Development ("HUD"), pursuant to
42 U.S.C. § 3610(a). The administrative complaint was amended on
March 24, 1997, and October 17, 1997. As amended, the
administrative complaint alleged that the defendants had violated
the Fair Housing Act, 42 U.S.C. §§ 3601 et seq., by discouraging
members of a protected class (African Americans) from applying
for the rental of apartment units at Wedgewood Village Apartments
on the basis of their race or color, manipulating the application
list to give priority to Caucasian applicants and by making
discriminatory statements against African Americans.
Pursuant to the requirements of 42 U.S.C. § 3610(a) and
(b), the Secretary of HUD conducted and completed an
investigation of H.O.M.E.'s administrative complaint, attempted
conciliation without success and prepared a final investigative
report. Based on information gathered in the investigation, the
Secretary, pursuant to 42 U.S.C. § 3610(g)(1), determined that
reasonable cause existed to believe that discriminatory housing
practices had occurred. On November 21, 1997, the Secretary
issued a Charge of Discrimination pursuant to 42 U.S.C.
§ 3610(g)(2)(A), charging the defendants with engaging in
discriminatory housing practices in violation of the Fair Housing
Act.
The events and circumstances that formed the basis for
the Secretary's Charge of Discrimination included the following:
- On October 9, 1991, October 31, 1991 and January
27, 1993, both an African American tester and a Caucasian tester
visited the rental offices at Wedgewood Village Apartments. On
each occasion, by her conduct and comments, defendant Lewis
discouraged the African American tester from applying for an
apartment while encouraging the Caucasian tester to apply.
- Although defendant Lewis told a HUD investigator
that she provides applications to every prospective tenant,
Larry B. Hall, Jr., an African American male, was not given an
application by Lewis when he inquired about tenancy at the
subject property in March of 1997. He was not asked the size of
the unit he was seeking or any questions regarding his income.
He was falsely advised that there was a two-year wait for units.
He was also advised that Wedgewood Village Apartments was
subsidized by the federal government and was informed that he
needed to be a single parent, receiving Social Security benefits
or handicapped to qualify for an apartment. By contrast, a
Caucasian prospective tenant who visited the rental office at the
subject property in May 1997 was furnished an application, was
advised that there was a three month wait for a unit and was not
informed that she needed to be a single parent, receiving Social
Security benefits or handicapped to qualify for an apartment.
- In or prior to 1996, defendant Lewis made several
negative statements to a Caucasian tenant regarding the tenant's
son's association with African American friends. Included among
these statements was a request by Lewis that the tenant "tell your son not to bring any more niggers on this property who don't live here."
- At least since January 1997, African American
applicants have waited significantly longer than Caucasian
applicants to become housed at Wedgewood Village Apartments.
- On or about July 17, 1996, defendant Provident
United Inc. became aware of the deficiencies found by HUD's
Multifamily Asset Management Division concerning leasing and
occupancy standards at Wedgewood Village Apartments. These
deficiencies included lack of written tenant selection
procedures, failure to maintain or properly manage a tenant
waiting list and failure to uniformly apply applicant reference
criteria. At this time, defendant Provident United, Inc. was
aware of fair housing complaints filed against it by H.O.M.E. and
knew or should have known that the management deficiencies cited
by HUD's Multifamily Asset Management Division were making it
possible for their management agent, defendant Lewis, to continue
her discriminatory policies and practices.
Pursuant to 42 U.S.C. § 3612(a), H.O.M.E. made an
election on or about December 17, 1997 to have the Secretary's
Charge of Discrimination resolved in a civil action filed in
federal district court.
Following this election, the Secretary of HUD
authorized the Attorney General of the United States to commence
a civil action pursuant to the provisions of 42 U.S.C. § 3612(o).
The discriminatory conduct in which the defendants
engaged, including the actions described in paragraph 14,
unlawfully discriminated against African Americans seeking rental
units at the subject property in the following ways:
- Discouraging African American individuals from
applying for rental units or making units unavailable to them
violated 42 U.S.C. § 3604(a);
- Imposing different rental standards and policies
on African American applicants seeking rental units violated 42
U.S.C. § 3604(b);
- Making discriminatory statements to testers,
tenants and others violated 42 U.S.C. § 3604(c);
- Misrepresenting to African Americans that rental
units were not available for inspection or rental when such units
were available violated 42 U.S.C. § 3604(d).
H.O.M.E. is an aggrieved person, as defined in 42
U.S.C. § 3602(i), and has suffered damages, including frustration
of its organizational purpose, as a consequence of the
defendants' discriminatory conduct.
The discriminatory conduct practiced by the defendants,
or for which they are legally responsible, was intentional,
willful and taken in disregard of H.O.M.E.'s rights.
II. Individual Violation (Larry B. Hall, Jr.)
Plaintiff realleges and herein incorporates by
reference the averments set forth in paragraphs 1-18, above.
Larry B. Hall, Jr., is an African American male who
resides within the Richmond Division of the Eastern District of
Virginia.
On or about August 29, 1997, Mr. Hall filed an
administrative complaint with the Secretary of the United States
Department of Housing and Urban Development ("HUD"), pursuant to
42 U.S.C. § 3610(a). The administrative complaint was amended on
October 17, 1997. As amended, the administrative complaint
alleged that the defendants had violated the Fair Housing Act, 42
U.S.C. § § 3601 et seq., by discriminating against Mr. Hall in
the rental of an apartment unit at Wedgewood Village Apartments
on the basis of his race or color.
Pursuant to the requirements of 42 U.S.C. § 3610(a) and
(b), the Secretary of HUD conducted and completed an
investigation of Mr. Hall's administrative complaint, attempted
conciliation without success, and prepared a final investigative
report. Based on information gathered in the investigation, the
Secretary, pursuant to 42 U.S.C. § 3610(g)(1), determined that
reasonable cause existed to believe that discriminatory housing
practices with respect to Mr. Hall had occurred. On November 21,
1997, the Secretary issued a Charge of Discrimination pursuant to
42 U.S.C. § 3610(g)(2)(A) charging the defendants with engaging
in discriminatory housing practices in violation of the Fair
Housing Act.
The events and circumstances that formed the basis for
the Secretary's Charge of Discrimination included those described
above in paragraph 13.
Pursuant to 42 U.S.C. § 3612(a), Mr. Hall made an
election on or about December 17, 1997 to have the Charge of
Discrimination resolved in a civil action filed in federal
district court.
Following this election, the Secretary of HUD, acting
pursuant to 42 U.S.C. § 3612(o), authorized the Attorney General
to commence a civil action on Mr. Hall's behalf.
The discriminatory conduct in which the defendants
engaged, including the actions described in paragraph 13,
unlawfully discriminated against Mr. Hall on the basis of his
race or color in the following ways:
- Denying Mr. Hall an opportunity to apply for an
apartment unit, including the opportunity to have his name placed
on a waiting list, violated 42 U.S.C. § 3604(a);
- Imposing different rental standards and policies
on Mr. Hall in connection with his effort to rent an apartment
unit at Wedgewood Village Apartments violated 42 U.S.C.
§ 3604(b);
- Misrepresenting to Mr. Hall that apartment units
were not available for rental when such units were available
violated of 42 U.S.C. § 3604(d).
Mr. Hall is an aggrieved person, as defined in 42
U.S.C. § 3602(i), and has suffered damages as a consequence of
the defendants' discriminatory conduct.
The discriminatory conduct practiced by the defendants,
or for which they are legally responsible, was intentional,
willful and taken in disregard of Mr. Hall's rights.
III. Individual Violation (Rokena Dunaway)
Plaintiff realleges and herein incorporates by
reference the averments set forth in paragraphs 1-28, above.
Rokena Dunaway is an African American female who
resides in the Richmond Division of the Eastern District of
Virginia.
On or about October 31, 1997, Ms. Dunaway filed an
administrative complaint with the Secretary of the United States
Department of Housing and Urban Development ("HUD"), pursuant to
42 U.S.C. § 3610(a). The administrative complaint alleged that
the defendants had violated the Fair Housing Act, 42 U.S.C.
§ § 3601 et seq., by discriminating against Ms. Dunaway in the
rental of an apartment unit at Wedgewood Village Apartments on
the basis of her race or color. HUD then issued a charge on
behalf of Ms. Dunaway and her two children, Raneka Dunaway and
Chelsey Gaines.
Ms. Dunaway visited the rental office at Wedgewood
Village Apartments sometime in or about March of 1996, seeking a
two or three bedroom apartment unit. Upon entering, she spoke
with defendant Lewis. Defendant Lewis falsely informed
Ms. Dunaway that she had to receive child support payments to
qualify for an apartment because she had two children. Although
Ms. Dunaway was not receiving child support payments at that
time, she believed that she had sufficient income to qualify for
a unit. Although an application form was provided to her, she
did not complete it because she felt discouraged by what
defendant Lewis had told her. Ms. Dunaway returned to the rental
office at Wedgewood Village Apartments in December of 1996 and
again spoke with defendant Lewis. Defendant Lewis advised Ms.
Dunaway that she had to have a minimum annual income of
$20,000.00 to qualify for a two-bedroom apartment. Defendant
Lewis gave Ms. Dunaway a rental application and informed her that
the wait for a two-bedroom apartment was three to six months.
Ms. Dunaway submitted her completed application on January 2,
1997. Ms. Dunaway made repeated telephone calls to Wedgewood
Village Apartments to inquire as to the status of her
application. Each time she called she was given different and
conflicting information about her placement on the waiting list.
She also made at least one visit to Wedgewood Village Apartments
at which time she requested to be placed in an apartment as soon
as possible. Ms. Dunaway was not housed at Wedgewood Village
Apartments until August 15, 1997.
Despite Ms. Dunaway's repeated attempts to be housed at
Wedgewood Village Apartments, six Caucasian applicants who had
applied for two-bedroom apartment units after Ms. Dunaway were
housed before her. Two Caucasian applicants, who, like Ms.
Dunaway, were not seeking a subsidized unit, waited only nine and
ten days respectfully to be housed. In contrast, Ms. Dunaway
waited 225 days for a unit after she submitted her application.
One of the Caucasian applicants submitted her application on
January 23, 1997, twenty-one days after Ms. Dunaway submitted
hers, but was housed on February 1. The other Caucasian
applicant applied for a two-bedroom unit in July of 1997, and was
placed in such a unit within ten days.
Pursuant to the requirements of 42 U.S.C. § 3610(a) and
(b), the Secretary of HUD conducted and completed an
investigation of Mr. Dunaway's administrative complaint,
attempted conciliation without success, and prepared a final
investigative report. Based on information gathered in the
investigation, the Secretary, pursuant to 42 U.S.C. § 3610(g)(1),
determined that reasonable cause existed to believe that
discriminatory housing practices with respect to Ms. Dunaway had
occurred. On November 24, 1997, the Secretary issued a Charge of
Discrimination pursuant to 42 U.S.C. § 3610(g)(2)(A), charging
the defendants with engaging in discriminatory housing practices
in violation of the Fair Housing Act.
On December 17, 1997, Mr. Dunaway elected, pursuant to
42 U.S.C. § 3612(a), to have the Charge of Discrimination
resolved in a civil action filed in federal district court.
Following this election, the Secretary of HUD, acting
pursuant to 42 U.S.C. § 3612(o), authorized the Attorney General
to commence a civil action on Ms. Dunaway's behalf.
The discriminatory conduct in which the defendants
engaged, including the actions described in paragraphs 32 and 33,
unlawfully discriminated against Ms. Dunaway and her 2 minor
children on the basis of her race or color in the following ways:
- Making Ms. Dunaway wait 225 days to be housed in
an apartment unit at Wedgewood Village Apartments while similarly
situated Caucasian applicants who had applied later than she did
were housed significantly sooner effectively made housing
unavailable to her in violation of 42 U.S.C. § 3604(a);
- Imposing different rental standards and policies
on Ms. Dunaway in connection with her effort to rent an apartment
unit at Wedgewood Village Apartments violated 42 U.S.C.
§ 3604(b);
- Misrepresenting to Ms. Dunaway that apartment
units were not available for rental when such units were
available violated 42 U.S.C. § 3604(d).
Ms. Dunaway is an aggrieved persons, as defined in 42
U.S.C. § 3602(i), and has suffered damages as a consequence of
the defendants' discriminatory conduct.
The discriminatory conduct practiced by the defendants,
or for which they are legally responsible, was intentional,
willful and taken in disregard of Ms. Dunaway's rights
IV. PATTERN OR PRACTICE VIOLATION
Plaintiff realleges and incorporates herein by
reference the allegations set forth in paragraphs 1-39 above.
Defendants have made statements and taken actions that
indicate a preference not to rent units at Wedgewood Village to
persons who are African American.
In operating Wedgewood Village Apartments, defendants
have engaged in a course of conduct intended to discourage
African Americans from renting apartments, and have discriminated
against African-American residents of Wedgewood Village in the
provision of services and facilities in connection with the
rental of dwellings, in violation of Sections 804 (a), (b), (c)
and (d) of the Fair Housing Act.
The conduct of the Defendants described above
constitutes:
- A pattern or practice of resistance to the
full enjoyment of rights secured by Title
VIII of the Civil Rights Act of 1968, as
amended, 42 U.S.C. § 3601 et seq.; and
- A denial to a group of persons of rights
granted by Title VIII of the Civil Rights Act
of 1968, as amended, 42 U.S.C. § 3601 et
seq., which denial raises an issue of general
public importance.
In addition to H.O.M.E., Larry B. Hall, Jr. and Rokena
Dunaway, there are other victims of Defendants' discriminatory
actions and practices who are aggrieved persons as defined in 42
U.S.C. § 3602(i). These victims may have suffered actual injury
and damages as a result of Defendants' discriminatory statements
and practices.
Defendants' discriminatory conduct was intentional,
willful, and taken in reckless disregard of the rights of the
victims of discrimination.
Prayer for Relief
WHEREFORE, the United States prays that the Court enter an
order that:
- Declares that the discriminatory housing practices of
the Defendants, as set forth above, violate the Fair Housing Act,
as amended, 42 U.S.C. §§ 3601 et seq.;
- Enjoins the defendants, their agents, employees, and
successors, and all other persons in active concert or
participation with any of them from discriminating on the basis
of race against any person in any aspect of the lease or rental
of a dwelling;
- Awards such actual damages as would fully compensate
H.O.M.E., Mr. Hall and Ms. Dunaway for injuries caused by the
Defendants' discriminatory conduct, pursuant to 42 U.S.C.
§§ 3612(o)(3) and 3613(c)(1);
- Awards punitive damages to H.O.M.E., Mr. Hall and Ms.
Dunaway, pursuant to 42 U.S.C. §§ 3612(o)(3) and 3613(c)(1);
- Awards such actual damages as would fully compensate
each identifiable person aggrieved by Defendants' discriminatory
housing practices for the injury suffered as a result of these
discriminatory practices, pursuant to 42 U.S.C. § 3614(d)(1)(B);
- Awards punitive damages to each identifiable person
aggrieved by Defendants' discriminatory housing practices,
pursuant to 42 U.S.C. § 3614(d)(1)(B); and
- Assesses a civil penalty against the Defendants in
order to vindicate the public interest, pursuant to 42 U.S.C.
§3614(d)(1)(C).
The United States further prays for such additional relief
as the interests of justice require.
JANET RENO
Attorney General
BILL LANN LEE
Acting Assistant Attorney General
Civil Rights Division
JOAN MAGAGNA
Acting Chief, Housng and Civil Encorcement Section
HARVERY L. HANDLEY
VSB #42105
SCOTT P. MOORE
Nebraska State Bar #20752
U.S. Department of Justice
Civil Rights Division
Housing and Civil Enforcement Section
P.O. Box 65998
Washington, DC 20035-5998
(202) 307-3802
HELEN F. FAHEY
United States Attorney
ROBERT W. JASPEN
Assistant United States Attorney
Suite 1800, Main Street Centre
600 East Main Street
Richmond, Virginia 23219
(804) 771-2186
VSB #13773
