Fair Housing / Lending News

Last November, we reported on Gallagher v. Magner, 619 F.3d 823, 829 (8th Cir. 2010), and its potentially lethal effect on a cornerstone of Fair Housing actions: disparate impact and the application of the McDonnell-Douglas “burden-shifting” analysis. However, on Friday, February 10, 2012, the parties withdrew the case from the US Supreme Court just a few weeks before the scheduled argument of February 29. The US Supreme Court granted the withdrawal. The parties in the case were the City of St. Paul, Minnesota (namely, the Department of Neighborhood Housing and Property Improvement [DNHPI]), and property owners who allege that their homes were targeted by housing code enforcement personnel and their draconian treatment of so-called violations of the housing code. The Plaintiffs brought suit against the City of St. Paul and the DNHPI alleging that the city’s enforcement of its housing code had a disparate impact on minority home and property owners, “whose customers were mainly indiv...

On January 13, Illinois Senate Bill 1259 was signed by Governor Pat Quinn, requiring banks and lending institutions to respond to a short sale offer by a homeowner within 90 days. The bill also gives courts the authority to hold banks accountable to the 90 day response provision. Previously, the court had no jurisdiction over banks, allowing them unprecedented control over the foreclosure process. "Families are not losing their homes to foreclosure because they are dead beats refusing to pay their mortgages," Illinois State Senator Silverstein said on a news release published on his website . "They are people who are struggling to get through the worst economic downturn since the Great Depression. Unfortunately, we are seeing banks stalling the process of a short sale in order to push through foreclosure proceedings, giving families limited options to get out of their mortgage debt." In 2010, the number of new short sales late that year had i ncreased nearly 83 p...

On November 7, 2011, the US Supreme court granted certiorari in Gallagher v. Magner , 619 F.3d 823, 829 (8th Cir. 2010) cert. granted, 10-1032, 2011 WL 531692 (U.S. Nov. 7, 2011). The case arose out of the Eighth Circuit when several owners and former owners of rental properties in St. Paul, Minnesota brought consolidated actions, challenging the City of St. Paul's enforcement of its housing code. In 1993, the City enacted the Property Maintenance Code which “[e]stablishes minimum maintenance standards for all structures and premises for basic equipment and facilities for light, ventilation, heating and sanitation; for safety from fire; for crime prevention; for space, use and location; and for safe and sanitary maintenance of all structures and premises.” To enforce the code, the City established the Department of Neighborhood Housing and Property Improvement (“DNHPI”) as an executive department responsible for administering and enforcing the Housing Code. DNHPI was empowered to ...

Derrick Bell, distinguished Civil Rights advocate and father of Critical Race Theory, died today at the age of 80, the New York Times reports . Bell, the first African-American law professor at Harvard, and the first dean of a non-historically black law school, led an interesting life, influencing our own President Barack Obama, who compared him to bus boycott heroine Rosa Parks. He left Harvard Law School when they refused to change their hiring practices to allow minorities a chance to teach at the famous Ivy League school. Perhaps more famous for rejecting high positions in education and government than accepting them, Bell once resigned from working at the Civil Rights Division of the Justice Department in his 20s, after his superiors told him to give up his membership in the N.A.A.C.P., believing it posed a conflict of interest. Professor Bell’s core beliefs included what he called “the interest convergence dilemma” — the idea that whites would not support efforts to improve the p...

The ongoing effort to rebuild New Orleans after Hurricane Katrina, some six years ago, continues, but all has not been well on the path to recovery. A few months ago, we posted a story on “ The Road Home ”, a program which would put thousands of people in newly-constructed homes, but the program was not without its’ faults. This time, however, residents are fighting back against housing discrimination. The Times-Picayune published news in the beginning of this month stating that a group of New Orleans landlords agreed to pay around $70,000 in damages and penalties to settle various suits against them by prospective tenants. Read the story here . These lawsuits alleged that the landlords denied housing to African-Americans at an apartment building which makes it ripe for a Fair Housing Act claim. The lawsuit alleges that Betty Bouchon, the building manager, failed to return calls from African-American testers while returning phone calls from white testers, made statements to white teste...

The New Haven Reporter reported at the end of last month, that a federal judge ruled in favor of Valley Housing LP, Home Development and nonprofit housing developer HOME Inc. Friday in their 2006 lawsuit against the City of Derby, Connecticut, finding that city officials tried to thwart development of a “supportive housing” project for low-income residents with special needs. The Plaintiffs “provide social services, in addition to affordable housing to allow people with mental and other disabilities to live successfully in the community.” Valley Housing is a limited partnership “created to develop and manage supportive housing for low income disabled people in the Naugatuck Valley of Connecticut.” The partnership combines the efforts of HOME (Housing Operations Management Enterprise), a nonprofit developer, whose mission is to “develop and manage safe, decent and affordable housing for low income people,” and Home Development, Inc., a nonprofit organization created for the “purpose...

The Court of Common Pleas in the County of Warren, Ohio, recently denied defense attorneys’ motion for Attorney’s fees under Fed. R. Civ. P. 11 and R.C. 2323.51 and R.C. 2335.39, in the Ohio Civil Rights Commission v. Mellon Ridge (Case No. 05CV64506 The court denied the fees and said: “Mellon Ridge’s proof of the reasonable and necessary attorney’s fees is problematic in the extreme,” according to the court. In what started out in the trial phase as a fair housing complaint, Rodney Jackson filed a complaint in the Ohio Civil Rights Commission against Mellon Ridge Residential Care Facility alleging that he had been discriminated against because of his race, and because of the Defendant’s failure to reasonably accommodate his disability. Mr. Jackson required the use of a wheelchair and the services of a service animal, namely, a dog, in order to function. The court found that the Defendant’s rationale for rejecting Mr. Jackson’s residency was legitimate – Mellon Ridge required proof of...