A recent article in the Wall Street Journal on May 26, 2011, discusses how the federal government and a New York real-estate company are negotiating to settle suspected federal housing discrimination violations that impacted the disabled.
In September 2010, the U.S. Attorney’s office filed a complaint against a real estate firm, Friedland Properties. The federal government alleged Freidland did not comply with federal anti discrimination laws when it designed the Melar, a 22-story, 143-unit apartment tower on the Upper West Side. The inability of wheelchair users to utilize the building was the basis for the complaint.
The main issue in this matter appears to be whether a handicap accessibility law passed in 1987 satisfies the Fair Housing Act, a federal law. New York developers assumed that compliance with local regulations also satisfied federal requirements, according to the article.
Friedland wasn’t the only landlord to face investigations. About ten other landlords also were notified that some of their buildings did not meet federal accessibility regulations. The Journal reports that as many as 176,000 New York City apartments could be investigated, including over 60,000 affordable–housing units. These cases can cost landlords several hundred thousands of dollars in legal fees. In addition to legal fees, there is also the added cost of retrofits to upgrade units to applicable standards.Additionally, administrative constraints and updating construction will lead to lost income if tenants cannot occupy the units.
Accessibility design and compliance is an important problem facing today’s building owners. Proactive management of accessibility design in both new construction and remodels can help you reduce your risk in this area.
If you would like to learn more about the discrimination risks property owners face and ways to mitigate and transfer this risk, please contact Albert L. Sica at [email protected] or (732) 395-4251.
To read the article in the Wall Street Journal click here.
