LI Real Estate Firms Settle Fair Housing Discrimination Probes

Long Island Housing Services’ crusade against discrimination among real estate firms and landlords found three more targets in recent weeks.

The Bohemia-based nonprofit settled complaints of source of income discrimination involving two brokerages and a property owner, Newsday reported. LIHS investigated the complaints by conducting fair housing testing, the same tactic behind a $3 million program announced this week by the New York Attorney General’s office.

The complaints involved source of income discrimination, when a prospective tenant wanting to use mainly housing vouchers gets rejected or penalized in some manner by a landlord. It can serve as a proxy to other forms of housing discrimination and violate fair housing laws.

A company called the Cassata Organization Family Limited Partnership and its related entities will pay $20,000 to settle complaints of disability and source of income discrimination. The complaints came to light four years ago, when nonprofit Suffolk Independent Living Organization alleged the landlord of Oakwood Manor in Bay Shore and Nu Horizons in Copiague wouldn’t accept applications from disabled renters.

An investigation by LIHS found employees rejected voucher payments.

Along with the monetary settlement, Cassata agreed to adopt a non-discriminatory fair housing policy. Four individual complainants also settled with the company for undisclosed amounts.

Last month, LIHS reached a settlement with H&G Realty after allegations of source of income and disability discrimination by the brokerage. The firm agreed to a $10,000 penalty and fair housing policy changes.

Anthony Kennedy Sr. and Kennedy Realty in Islip also reached a settlement with LIHS, agreeing to policy changes, but without payments changing hands.

Housing discrimination has remained a persistent concern in New York, four years after Newsday’s bombshell 2019 investigation into housing bias on Long Island.

Attorney General Letitia James announced this week the launch of a $3 million fair housing tester program in the state. Nonprofit groups and local government agencies will be able to obtain grants of up to $250,000 to fund payment and training of testers.

— Holden Walter-Warner