FOR IMMEDIATE RELEASE CR THURSDAY, AUGUST 7, 1997 (202) 616-2765 TDD (202) 514-1888 JUSTICE DEPARTMENT AND ADDISON, ILLINOIS FINALIZE FAIR HOUSING AGREEMENT WASHINGTON, D.C. -- Resolving a federal lawsuit filed in 1995, the Justice Department today announced that the village of Addison, Illinois, will pay up to $1.4 million for a comprehensive urban redevelopment plan. The Department's July, 1995 suit alleged that the village had violated the federal Fair Housing Act by illegally tearing down Hispanic neighborhoods as part of an urban renewal program. Under the settlement, which the parties finalized today but must still be approved by the court, the $1.4 million will pay to help build affordable housing, carry out relocation programs, build parks, and compensate families displaced by the urban renewal plan. The Hispanic population in Addison, which has 32,000 residents, more than doubled between 1980 and 1990. "We are pleased with Addison's cooperation in working to preserve and improve these neighborhoods instead of destroying them," said Isabelle Katz Pinzler, Acting Assistant Attorney General for Civil Rights. Under the compensation portion of the settlement, part of the $1.4 million settlement will be paid to individuals. The package includes payments of $7,000 to 44 families forced to move under an urban renewal plan, as well as a premium payment to building owners forced to sell their properties. Under the redevelopment portion of the agreement, Addison will pay to help build affordable housing, including town homes, duplexes, condominiums and owner-occupied multi-family dwellings. It also agreed to create two new parks in affected neighborhoods, along with additional parking and a recreation center, and to create a housing assistance program to help locate comparable housing for any residents who have been displaced. If the city chooses to tear down and rebuild all of the housing under the agreed urban redevelopment plan, the number of buildings and households affected will result in a payment of approximately $1.4 million. Should the village decide to implement only a portion of the plan, and choose to leave some existing buildings intact, then the amount of payments that the village will be required to make will be lower. According to the 1995 suit, the village improperly used a state financing program that gives municipalities the authority to tear down areas that are designated as "blighted" and turn the properties over to private developers. The Department's lawsuit alleged that Addison intentionally targeted its plan at six of the eight census blocks with majority Hispanic populations, even after repeated inspections found that the housing complied with applicable housing codes. The Department claimed that the village knew that there would be insufficient housing for the displaced residents of those areas and that many Hispanic families would be forced to leave. "We applaud efforts to improve neighborhoods by providing residents with decent affordable housing," said James B. Burns, U.S. Attorney in Chicago. "But, effectively displacing minorities in the name of redevelopment is an affront to legitimate programs to remove blight." The matter was originally investigated by the Department of Housing and Urban Development (HUD) and referred to the Justice Department for enforcement. "This settlement demonstrates what can be accomplished when HUD and the Department of Justice work together to enforce the provision of the Fair Housing Act," said Housing Secretary Andrew Cuomo. "The Clinton Administration is committed to stamping out all forms of housing discrimination, and it is this Department's responsibility to affirmatively further fair housing goals when communities spend taxpayer dollars." The settlement also resolves a related class action case filed by residents and owners in the affected neighborhoods and Hispanic and civil rights groups including Hispanics United of DuPage County, the Hispanic Council and the Leadership Council for Metropolitan Open Communities. 97-327 # # #