FOR IMMEDIATE RELEASE                                          CR
WEDNESDAY, MAY 1, 1996                             (202) 616-2765
                                               TDD (202) 514-1888


  VIRGINIA RENTAL COMPANY TO PAY $100,000 FOR ALLEGEDLY STEERING
   BLACKS AND WHITES TO DIFFERENT CITIES BECAUSE OF THEIR RACE

  CASE STEMS FROM JUSTICE DEPARTMENT NATIONWIDE TESTING PROGRAM

     WASHINGTON, D.C. -- A Virginia rental company that allegedly
steered African American and white prospective tenants to certain
areas because of their race agreed today to pay $100,000 in damages
and penalties and to further fair housing, the Justice Department
announced.
     The case is the 33rd stemming from a nationwide Justice
Department fair housing program to detect discrimination.  Under
the program trained pairs of African Americans and whites posing as
prospective tenants inquire about rental units.  By comparing the
experiences of the pairs, investigators can discover whether
minorities were treated less favorably than whites.  
     "Housing discrimination is usually subtle but inflicts deep
wounds on its victims and serves to segregate our society," said
Assistant Attorney General for Civil Rights, Deval L. Patrick. 
"All Americans should have the ability to live in the neighborhood
of their choice regardless of the color of their skin."
     In a complaint, filed together with the agreement in U.S.
District Court in Richmond, the Justice Department alleged that
Pierce Construction Company, which owns and manages rental
properties in Petersburg and manages properties in Colonial
Heights, engaged in a pattern of discrimination because of race.
     It accused the company of providing African Americans with
information about available units only in the predominantly black
city of Petersburg, while telling whites about available units
primarilly in the nearly all-white neighboring town of Colonial
Heights.  It also claimed that the company discouraged whites from
considering housing in Petersburg.
     The Justice Department contracted with Housing Opportunities
Made Equal (HOME), a fair housing organization in Richmond, to
assist in the investigation by conducting some of the tests.     
     Under the agreement the company will pay $25,000 in civil
penalties to the U.S. treasury; $25,000 to HOME to further fair
housing in the Petersburg/Colonial Heights area; and create a
$50,000 fund to compensate any identified victims of the alleged
discriminatory practice.
     "By teaming up with respected private fair housing
organizations, we are better able to eliminate discrimination in
housing," added Patrick.
     Patrick noted that "steering" occurs when a rental agent
discloses different properties to applicants with the intent to
concentrate persons in different areas according to race.
     The apartment complexes named in the suit include Webster
Court Apartments and Westwood Apartments, in Petersburg, and
English Village Apartments in Colonial Heights.  All rental
services for these properties are provided from the office of the
Pierce Construction Company in Petersburg.
     "We are committed to fighting housing discrimination which far
too often goes undetected," added Patrick.
     Individuals who believe they may have been the victims of
housing discrimination at any of the complexes owned or managed by
Pierce Construction Company should call the Housing Section of the
Civil Rights Division of the Justice Department at 202-514-4713, or
HOME at (804) 354-0641.  Persons who believe that may have been
discriminated against in housing at any other locations should call
HUD at 1-800-669-9777.
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