Why a Landlord Owed $70K for Refusing Tenant

HUD Orders Payment for Fair Housing Act Violation

On June 7, 2021, landlord Alex Raimos was charged with violating the Fair Housing Act after refusing to rent to a mother and her daughter after learning of the latter’s disability.

The Department of Housing and Urban Development (HUD) found that the prospective tenant attempted to rent an apartment unit owned by Raimos. The landlord agreed to rent to the woman and accepted her security deposit – but after hearing that her daughter had cerebral palsy, he retracted his agreement to rent, says HUD’s press release. As a result, the family had to move in with relatives.

A HUD Administrative Law Judge (ALJ) ordered Raimos to pay $50,530 in damages to the family and a $20,111 civil penalty to the United States.

The ALJ found that the “outright refusal to rent is arguably the most egregious form of fair housing violation, as it completely denies an individual a valuable housing opportunity. To put Complainant and her disabled child through two months of anticipation, excitement, and hope only then to take it away because of her child’s cerebral palsy is reprehensible.”

Based on the allegations, Raimos clearly violated the Fair Housing Act. However, “just don’t discriminate” isn’t good advice for those looking to protect their rental property business from discrimination cases.

While few set out to violate the Fair Housing Act, there are critical nuances most landlords don’t know – until it’s too late. Serious property owners looking to keep their business successful long term should educate themselves on their federal, state, and local laws to stay compliant.