http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2011/HUDNo.11-094

HUD Charges Las Vegas-area Homeowners Association, Property Management Company With Discriminating Against Families With Children

WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today announced that it has charged a Las Vegas, Nevada, homeowners association and its management company with discriminating against families with children by restricting its housing to persons who are 55 and older. Specifically, HUD's charge alleges that Lakeside Village Homeowners Association and Castle Management & Consulting, LLC, did not take the proper steps required to make the community's age restriction legal.

"Limiting housing to adults over age 55 is permitted by the Fair Housing Act only in specific circumstances. HUD insists that homeowner associations fulfill their obligations in order to qualify for an exemption," stated John Trasviña, Assistant Secretary for Fair Housing and Equal Opportunity. "HUD is committed to assist families or unit owners harmed when associations fail to follow the law."

The Fair Housing Act prohibits homeowners associations and others from discriminating against families with children, unless the housing meets the Fair Housing Act's requirements for housing for older persons. The requirements provide that 80 percent of the units must be occupied by at least one person age 55 or older; that the managers of the housing publish and adhere to policies that demonstrate an intent to be housing for older persons; and that the managers verify occupancy in accordance with the Act's statutory and regulatory requirements.

According to HUD's charge, Roberta Jean Leong was in the process of selling her home to a male buyer under the age of 55 when the deal was terminated because of the Homeowners Association's restrictive age policy. HUD's investigation, however, found that the Homeowners Association did not meet the age exemption requirements of the Fair Housing Act and therefore did not have the legal authority to restrict sales to persons under 55, including families with children.

Lakeside's age restrictions may also affect the ability of other homeowners to sell their homes because the policy is shown on multiple listing services.

The HUD charge will be heard by a United States Administrative Law Judge unless any party to the charge elects to have the case heard in federal district court. If an administrative law judge finds that discrimination has occurred, he may award damages to aggrieved persons for the injury caused to them by the discrimination.

FHEO and its partners in the Fair Housing Assistance Program investigate more than 10,000 housing discrimination complaints annually. People who believe they are the victims of housing discrimination should contact HUD at 1-800-669-9777 (voice), 800-927-9275 (TTY).

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HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Housing:

Feds hit Las Vegas HOA with age discrimination complaint

By Steve Green

Friday
20 May 2011
2:50 p.m.

A Las Vegas homeowners association faces a charge of age discrimination after an investigation that’s been under way for more than two years.

The U.S. Department of Housing and Urban Development today said it filed an administrative complaint against the Lakeside Village Homeowners Association, aka Brookview/Lakeside, 7600 W. Charleston Blvd., claiming it discriminates against families with children.

The federal agency said the case dates to 2003, when Roberta Jean Leong bought a home in the community at a time when its policies prohibited discrimination against families with children.

In 2005, the HOA voted to convert Lakeside into a community for people age 55 and older, excluding families with children, the complaint says.

When Leong tried to sell her home in 2007, the 39-year-old buyer backed out upon learning of the age rule, the complaint says.

"Complainant could not sell her property because of respondents’ illegal restrictions against families with children" and had to turn away renters with children, the complaint says.

Lakeside's age restrictions may also affect the ability of other homeowners to sell their homes because the policy is shown on multiple listing services, HUD said.

HUD said that while age-restricted communities are legal, in this case Lakeside Village HOA and Castle Management & Consulting LLC, its management company, did not take the proper steps required to make the community's age restriction legal.

HUD said the Fair Housing Act prohibits homeowners associations and others from discriminating against families with children, unless the housing meets the Fair Housing Act's requirements for housing for older persons.

The law says that for a community to be age-restricted, 80 percent of the units must be occupied by at least one person age 55 or older; that the managers of the housing publish and adhere to policies that demonstrate an intent to be housing for older persons; and that the managers verify occupancy, HUD said.

"Limiting housing to adults over age 55 is permitted by the Fair Housing Act only in specific circumstances. HUD insists that homeowner associations fulfill their obligations in order to qualify for an exemption," John Trasviña, assistant secretary for Fair Housing and Equal Opportunity, said in a statement. "HUD is committed to assist families or unit owners harmed when associations fail to follow the law."

A message for comment on the complaint was left with Castle Management.

The complaint will be heard by an administrative law judge, HUD said. It seeks an unspecified civil penalty and an injunction blocking further alleged violations of the Fair Housing Act.

In April 2009, HUD sued the HOA and Castle Management in federal court in Las Vegas to enforce a subpoena demanding information in an investigation "involving unfair housing practices, falsely publishing property as a designated senior complex and failing to meet the statutory requirements of housing for older persons."

The subpoena demanded information such as minutes of HOA board of directors meetings for four years through June 2007, documents used for the 2005 vote; documents provided to potential renters, buyers and agents; and a list of all occupants in November 2005 and in June 2007 with their date of occupancy and date of birth.

That lawsuit was dropped after the subpoena issue was resolved.

portal.hud.gov/hudportal/documents/huddoc?id=charge-leong-v-castle-etal.pdf or download PDF here 

www.justice.gov/crt/about/hce/documents/castlepet_4-28-09.pdf or view here