FOR IMMEDIATE RELEASE                                          CR
THURSDAY, APRIL 24, 1997                           (202) 616-2777
                                               TDD (202) 514-1888

   JUSTICE DEPARTMENT SUES CONNECTICUT TOWN FOR DISCRIMINATING
            AGAINST AFRICAN AMERICANS AND HISPANICS 
                                
                                
     WASHINGTON, D.C.  The Justice Department today filed suit
charging Milford, Connecticut, and its housing authority with
canceling a subsidized housing program because it would have been
occupied by African American and Hispanic families. 
 
     The complaint, filed today in U.S. District Court in
Bridgeport, alleged that Milford and its housing authority
violated the federal Fair Housing Act by terminating a low to
moderate income housing program in reaction to concerns that the
housing would be occupied by African Americans and Hispanics. 
The program had already received funding from the Department of
Housing and Urban Development (HUD) and had been approved by the
housing authority before it was canceled.  

     "For millions of Americans affordable housing is one of the
first steps up the economic ladder," said Acting Assistant
Attorney General for Civil Rights Isabelle Katz Pinzler.  "Skin
color and national origin should have no place in deciding where
people can live."

     According to the Department, Milford's housing authority
received funds from HUD to purchase approximately 30 one and two-
family houses scattered throughout the city.  The homes were to
be rented to low income working families.

     After the housing authority board of commissioners had
initiated the program and purchased the first three houses,
opponents raised strong concerns that the housing would be
occupied by persons living in minority residential areas of
Bridgeport and New Haven.  The Department's complaint asserts
that because of this opposition, the city placed strong pressure
on the housing authority to cancel the program.  Milford is
located between the two large cities and has a population of
50,000 that is only 1.5% African American and 2.3% Hispanic.
Minorities comprise 51% of Bridgeport's population and 48% of New
Haven's. 

     In December 1995, the Department of Justice initiated an
investigation into the actions of the city and the housing
authority.  For the past eight months, the parties have been
negotiating to resolve issues raised by the investigation, but
have been unable to reach an agreement.

     "We will continue to fight for equal opportunity for fair
housing for all of Connecticut's citizens," said Christopher
Droney, the U.S. Attorney in Connecticut.   

     Funding was originally provided to Milford by HUD in 1991 to
develop a subsidized housing project.  The housing authority
later had difficulties obtaining city approval to build the
project, and they requested and received permission from HUD to
use the federal funds for the scattered site program.  Although
the housing authority attempted to return the funds when they
canceled the scattered site program, they remain available.

     Today's complaint seeks a court order to ensure that an
appropriate affordable housing program is reinstated and operated
in a nondiscriminatory manner.  The complaint also asks that
damages be paid to persons harmed by the cancellation of the
program, and that civil penalties be paid to the U.S. Treasury.
  
     A private lawsuit regarding the cancellation of the
scattered site program was filed in June 1996 by the NAACP and
several individuals eligible for the program.
                              # # #
97-167