FOR IMMEDIATE RELEASE CR WEDNESDAY, JUNE 18 1997 (202) 616-2765 TDD (202) 514-1888 DEPARTMENT OF JUSTICE REACHES SETTLEMENT WITH NEW JERSEY APARTMENT COMPLEX AND FILES SUIT AGAINST ANOTHER FOR ALLEGEDLY DISCRIMINATING AGAINST AFRICAN AMERICANS WASHINGTON, D.C. -- The owners and managers of one of New Jersey's largest private apartment complexes agreed to pay nearly $1 million in damages and penalties for allegedly discriminating against African Americans under an agreement reached today with the Justice Department. The Department also announced today that it filed suit against another New Jersey complex for discriminating against African Americans. The settlement, filed together with a complaint in U.S. District Court in Newark, is the first in New Jersey stemming from the Justice Department's fair housing testing program. Under the program, trained teams of African American and white testers posing as prospective tenants inquire about the availability of rental units. By comparing the experiences of the testers, investigators discover whether African Americans were treated less favorably than whites. "Housing discrimination, though often subtle, inflicts deep wounds on its victims and serves to segregate our society," said Isabelle Katz Pinzler, Acting Assistant Attorney General for Civil Rights. Today's settlement resolves allegations by the Justice Department that Chandler Associates and the owners and managers of Pleasant View Gardens, a 1142-unit complex in Piscataway, unfairly discouraged African Americans from obtaining apartments. Under the agreement Chandler Associates will: * not discriminate against African Americans in the rental of units at Pleasant View Gardens or at the 1200 units in their other New Jersey apartment complexes, including The Towers in Passaic, Lakeview Apartments in Leonia, Wayne Village Apartments in Wayne, Oak Manor Apartments in Ridgewood, Leland Gardens Apartments in Plainfield, East Hill Gardens Apartments in Tenafly, Windsor Realty Company in Wood-Ridge, and Pleasure Bay Apartments in Long Branch; * pay $750,000 in damages to victims of the discrimination and $200,000 in civil penalties to the U.S. Treasury -- the largest civil penalty paid in a housing discrimination case; * contribute $550,000 to a project to further fair housing; * provide training to all rental agents and managers at all of the above-named New Jersey complexes to prevent discriminatory practices; and, * implement specific fair housing guidelines for advertising available units and for informing all prospective tenants of available units and any rent specials. According to the Justice Department, rental agents allegedly told African Americans that no apartments were available while telling whites, within hours, that apartments were in fact available. The Department also had alleged that agents told whites of special move-in and rent discounts but failed to inform African Americans of these discounts. "Seemingly friendly rental agents who don't tell people of one race about the availability of apartments are engaging in housing discrimination, plain and simple," said Pinzler. Pinzler noted that the size of this settlement reflects the continued importance of the Justice Department's fair housing testing program. "We will continue to use our testing program to detect and weed out those who engage in this type of discrimination." The Justice Department was assisted in its testing by the Northern New Jersey Fair Housing Council, a fair housing group based in Hackensack. In the second case, also filed in U.S. District Court in Newark, the Justice Department alleged that the owner, Robert M. Ernstoff, and the rental agents of Westfield Manor Apartments discriminated against prospective African American tenants. The complaint alleges that African Americans looking to rent apartments at the 120-unit complex in Westfield were falsely told that apartments were unavailable, when in fact they were. The Department's complaint seeks injunctive relief, compensatory and punitive damages for victims of the discriminatory practices, and civil penalties. In addition to these New Jersey cases, the Department of Justice's testing program has produced 36 suits in Ohio, Michigan, California, Illinois, South Dakota, Missouri, Indiana, Alabama, Virginia and Florida. The program has resulted in more than $6.5 million in damage awards. Individuals who believe that they may have been the victims of housing discrimination at any of these complexes should call the Housing Section of the Civil Rights Division of the Justice Department at 1-800-896-7743. ### 97-251