FOR IMMEDIATE RELEASE                                          CR
MONDAY, APRIL 14, 1997                             (202) 616-2765
                                               TDD (202) 514-1888
                                 
   JUSTICE DEPARTMENT REACHES AGREEMENT WITH FRESNO, CALIFORNIA
              TO RESOLVE HOUSING DISCRIMINATION SUIT

     WASHINGTON, D.C. -- Fresno, California will pay $535,000 and
no longer block the renovation of a vacant apartment building
slated to house individuals with mental disabilities, under an
agreement reached today with the Justice Department.

     The agreement, filed today with a complaint in the U.S.
District Court in Fresno, resolves allegations that the City
violated the federal Fair Housing Act by refusing to fund the
renovation of an apartment building because it was going to serve
tenants with mental disabilities. 
 
     Today's agreement also resolves a similar private suit filed
by a California man and two Fresno non-profit agencies -- Family
Alliance for the Mentally Ill and Affordable Homes, Inc. -- that
sought to renovate the 22 unit complex called Cedar Heights.

     "Stereotypical attitudes should not stand in the way of the
right of people with mental disabilities to find an affordable
place to live," said Acting Assistant Attorney General for Civil
Rights Isabelle Katz Pinzler.  "We are pleased that the City
agreed to work out our concerns over the denial of funding for
Cedar Heights."  

     Under the agreement, the city will:

     *    train its employees and officials to ensure they will
          not discriminate in the future against people with
          disabilities;

     *    provide $445,000 in grants to help pay for the
          renovation of the apartment building, as well as
          $85,000 for legal costs; 

     *    pay $5,000 to help cover the costs of housing for the
          California man who was unable to move into the home
          while the renovation was delayed;

     *    conduct a community outreach program to inform the
          public about services and benefits available to Fresno
          residents with disabilities; and

     *    review its existing housing programs to determine
          whether any changes are needed to accommodate residents
          with disabilities.

      According to the Justice Department, the City violated the
law by acceding to a city council member's campaign to keep
people with mental disabilities out of Cedar Heights.  Cedar
Heights is located at Cedar and Dakota avenues in Fresno.

     "Everyone agreed that the proposed renovation of Cedar
Heights will help address the lack of affordable housing for
people with mental disabilities in Fresno," said Charles J.
Stevens, the U.S. Attorney in Sacramento.  "We're glad the city
and the non-profit agencies will be able to devote their time and
resources to the renovation, instead of litigation."

     Protection and Advocacy, Inc., Mental Health Advocacy
Services, Western Center on Law and Poverty, Central California
Legal Services, and Fresno lawyer Jack Daniel represented the
non-profit agencies and the California man.
                              # # #
97-150