| Notable Fair Housing
Project Lending Discrimination Case
Hargraves and the Fair Housing Council v. Capital City Mortgage
Corporation (D.D.C. 1:98-CV-01021)
In April 1998, the Fair Housing Project and Baach, Robinson &
Lewis filed a federal lawsuit against Capital City Mortgage Corporation
alleging that it targets African-American census tracts in the
District of Columbia for its fraudulent, usurious, and predatory
lending practices. Capital City markets loans -- with interest
rates as high as 31% -- to African-Americans with equity-rich
properties and poor credit. The lawsuit alleges that once borrowers
fall behind on their payments, the mortgage company relies on
hidden "accelerator clauses" to add on points, penalties, and
attorneys' fees. As a result, the company forecloses on properties
to satisfy borrowers' debts. The lawsuit alleges that these practices
violate the Fair Housing Act and the civil RICO statute. The Federal
Trade Commission has filed a companion case and both are expected
to go to trial in 2000.
Notable Fair Housing Project
Sexual Harassment Case
Williams and the Fair Housing Council v. Poretsky Management
Lisa Williams was repeatedly harassed by a maintenance worker
at her apartment complex in Oxon Hill, Maryland. Despite her complaints,
the Poretsky Management did nothing to protect her. The Project
and Terris, Pravik & Wagner filed a federal lawsuit against
the company. In 1996, the Fair Housing Project won a landmark
ruling establishing that landlords are liable under the Fair Housing
Act where sexual or racial harassment has become severe enough
to create a "hostile living environment." In addition, Ms. Williams
and the Fair Housing Council won an award of $200,000 in damages.
Notable Fair Housing Project
Disability Discrimination Case
Wright and the Fair Housing Council v. Ralph D. Rocks
In 1991, Jack Wright, who is deaf and blind, applied for a rental
apartment at Wheaton Place in Wheaton, Maryland and offered to
pay a full year's rent in advance. The rental agent rejected his
application, stating that the apartment complex did not have "handicapped
facilities" and suggesting alternative apartment buildings with
such facilities. The Fair Housing Project and Foley & Lardner
filed a federal lawsuit that settled for $160,000 and a free,
two-bedroom apartment for the rest of Mr. Wright's life.
Notable Fair Housing Project
Race Discrimination Case
Reeves & The Fair Housing Council of Greater Washington,
Inc. v. Carrollsburg Condominium Owners Assoc. (D.D.C. 96-02495)
In a precedent-setting case, the court ruled in 1997 that a condominium
association can be held liable under the Fair Housing Act for
failing to take action to stop racial harassment of one condominium
owner by another. Deborah Reeves, an African American, suffered
racial and sexual invective by a fellow condominium owner, culminating
in a threat to lynch her. The condominium board and management
took no action, despite Ms. Reeves' repeated complaints. Ultimately,
the condominium association paid $550,000 to Ms. Reeves, and the
offending owner was enjoined from violating the Fair Housing Act.
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