Justice Department Obtains Record $2.725 Million Settlement of Housing Discrimination Lawsuit

Justice Department Obtains Record $2.725 Million Settlement of Housing
Discrimination Lawsuit

WASHINGTON, Nov. 3 /PRNewswire-USNewswire/ -- The Justice Department announced
today the largest monetary payment ever obtained by the department in the
settlement of a case alleging housing discrimination in the rental of
apartments. Los Angeles apartment owner Donald T. Sterling has agreed to pay
$2.725 million to settle allegations that he discriminated against
African-Americans, Hispanics and families with children at apartment buildings
he controls in Los Angeles. The settlement must be approved by U.S. District
Judge Dale S. Fischer.

"Housing is a basic human need, and yet decades after passage of the Fair
Housing Act, far too many still encounter barriers like discrimination.
Particularly in times of economic distress and rising foreclosures, we must
remain vigilant to ensure all individuals have equal access to housing," said
Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.
"The magnitude of this settlement should send a message to all landlords that
we will vigorously pursue violations of the Fair Housing Act."

The lawsuit, filed by the Justice Department in August 2006, alleged that the
defendants, Donald T. Sterling, his wife Rochelle Sterling and the Sterling
Family Trust, engaged in discriminatory rental practices on the basis of race,
national origin and familial status (having children under 18) at various
apartment buildings that they own and manage in Los Angeles. Among other
things, the suit alleged that the defendants discriminated against non-Korean
tenants and prospective tenants at buildings the defendants owned in the
Koreatown area of Los Angeles.

In court filings, for example, the United States presented evidence that the
defendants' employees prepared internal reports that identified the race of
tenants at properties the defendants purchased in Koreatown. Additionally, the
defendants made statements to employees at Koreatown buildings indicating that
African-Americans and Hispanics were not desirable tenants. The United States
also presented expert analysis in court filings showing that the defendants
rented to far fewer Hispanics and African-Americans in Koreatown which than
would be expected based on income and other demographic characteristics.

The defendants, who manage their apartments under the name Beverly Hills
Properties, own and manage approximately 119 apartment buildings comprising
over 5,000 apartments in Los Angeles County. The settlement would also resolve
two related lawsuits filed by former tenants at one of the properties. The two
families, an African-American family and an interracial married couple with
bi-racial children, alleged that the defendants demolished the private yards
that had been part of their apartment and took other actions against them
because of their race.

The settlement, which is memorialized in a proposed consent order that the
parties have submitted to the court for approval, would require the defendants
to pay a $100,000 civil penalty to the United States. Under the settlement,
the defendants would also pay $2.625 million into a fund that would be used to
pay monetary damages to persons who were harmed by the defendants'
discriminatory practices, including the tenants in the two related lawsuits
discussed above. Any money left over would go to further fair housing
education or enforcement in Los Angeles. The terms of the distribution of the
$2.625 million will be determined in a separate disbursement order that will
be submitted by the United States for approval to the Court.

In addition to the payments in damages and civil penalties, the proposed
consent order would require the defendants to take various steps to ensure
non-discriminatory practices at their Los Angeles County rental properties.
Among other things, the proposed consent order would:

* Enjoin the defendants from discriminating on the basis of race, national
origin, and familial status;
* Require the defendants to implement a self-testing program over the next
three years to monitor their employee's compliance with fair housing laws at
their Los Angeles County properties. The testing would be conducted by an
independent contractor that would report the results to the defendants and the
United States;
* Require the defendants to maintain non-discriminatory practices and
procedures; and
* Require the defendants to obtain fair housing training through an
independent contractor for their employees who participate in renting, showing
or managing apartments at the Los Angeles County properties.

The federal Fair Housing Act prohibits discrimination in housing based on
race, color, religion, national origin, sex, disability and familial status.
Individuals who believe that they may have been victims of housing
discrimination should call the Housing Discrimination Tip Line
(1-800-896-7743) or email the Justice Department at fairhousing@usdoj.gov.
Such persons may also contact the U.S. Department of Housing and Urban
Development at 1-800-669-9777.

Fair housing enforcement is a priority of the Civil Rights Division. More
information about the Civil Rights Division and the laws it enforces is
available at http://www.justice.gov/crt.

SOURCE U.S. Department of Justice

U.S. Department of Justice Office of Public Affairs, +1-202-514-2007, TDD,
+1-202-514-1888