Washington, D.C. Real Estate Companies Pay $10M Penalty for Housing Discrimination

Three real estate companies in Washington, D.C. face a record-breaking penalty of $10 million for discriminating against tenants who use Section 8 vouchers and other types of housing assistance.

According to Bloomberg, DARO Management Services, DARO Realty, and New York-based parent company Infinity Real Estate entities were sued by the district over discriminatory housing practices.

The fine is reportedly the largest civil penalty ever charged in a housing discrimination case.

BREAKING: We have reached a historic settlement with DARO Realty for discriminating against renters who use vouchers and other forms of housing assistance.

DARO will pay a penalty of $10 million, the largest civil penalty in a housing discrimination case in US history.

— AG Karl A. Racine (@AGKarlRacine) October 20, 2022

“If you follow this playbook, you will face consequences,” District of Columbia’s attorney general Karl Racine said in a message to all landlords about the housing discrimination.

According to the complaint, renters who used federal housing choice vouchers like Section 8 were charged extra fees. The district attained documents that “pointed to purposeful intent to discriminate,” including email instructions from Infinity investment director Jared Engel to DARO Management president Carissa Barry to “find ways to reject” voucher holders.

“Off the record, I am doing everything I can to reduce if not eliminate the Section 8 program from our communities. We have tightened our screening criteria as much as humanly possible,” Barry wrote in an email to Infinity managing partner and founder Steven Kassin.

Bloomberg also provided that the case showed the companies rejection toward housing assistance for tenants facing homelessness. Applicants with subsidies were met with stricter standards that disqualified them for residences.

“This case demonstrates the rampant discrimination that tenants who use vouchers and other assistance face, and that this discrimination is destructive to families and communities,” said Deborah Thrope, deputy director for the nonprofit National Housing Law Project, in an email.

“We hope that the settlement sends a message to landlords in the District that source of income won’t be tolerated, and to states and localities across the country that they can and must do more to enforce their own laws,” she added.

According to the Washington City Paper, DARO has 18 months to pay the $10 million in penalties and formally dissolve its property management business. Ownership of any residential real estate management company in D.C. by the defendants will also be prohibited, according to the settlement.

“When landlords break the law and refuse to accept vouchers, it’s reminiscent of Jim Crow-era housing discrimination policies intended to restrain opportunities for Black residents,” Racine said.