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Continuing Market Failure means Government Must Encourage and Build Affordable Housing for our Children’s Future

Long Island Housing Services (LIHS) settled a housing discrimination complaint against Compass Greater NY LLC and Karen Elefante based on allegations of Familial Status and Source of Income Discrimination. Compass Great NY LLC is a licensed real estate company with an office in Rockville Centre, New York. Elefante is a licensed real estate agent with Compass Greater NY LLC.

Source of Income Discrimination Investigation

As part of a 2021 systematic investigation, Long Island Housing Services initiated testing against Compass. The testing and investigation revealed evidence that testers with Housing Choice Section 8 vouchers who posed as participants of Making Moves program were told that they would have to meet several criteria, including a credit score of 700 and a minimum yearly income of $100,000 to $120,000.

A minimum income policy is often enacted by housing providers as a method of excluding individuals with housing subsidies. Individuals with housing subsidies usually cannot meet the minimum income required by the housing providers because of the maximum income limits required for the housing subsidy. Therefore, it may be considered a source of income discrimination to apply a minimum income or credit score policy to individuals with housing subsidies.

New York State, Suffolk County, and Nassau County Human Rights Laws prohibit discrimination based on a lawful Source of Income. Source of Income discrimination occurs when a housing provider refuses to accept a lawful source of income, including, but not limited to, Section 8 Housing Choice Voucher Program, Supplemental Social Income (SSI), Social Security Disability (SSD), Nursing Home Transition and Diversion (NHTD) Housing Subsidy, Olmstead Housing Subsidy (OHS), Traumatic Brain Injury (TBI) Medicaid Waiver program, or child support.

Income and Credit Score Requirements are Unnecessary for Voucher Holders

Moreover, income and credit score requirements for voucher holders are unnecessary. Since vouchers cover most of the rent, there is no need to use such criteria to assess whether tenants can pay. if the tenant is responsible for any portion of the rent, they have been thoroughly vetted by personnel at the voucher-providing agency who are experts in this area and whose responsibility is to ensure that that voucher holders are successful tenants.

Elefante told a tester that “your credit, regardless of your voucher, has to be over 700 and you have to work and have an income.” However, a landlord’s sole goal should be to determine if a tenant can pay the rent. A credit score does not accurately reflect a voucher holder’s ability to pay since the government makes the rent subsidy payment directly to the landlord, the subsidy is not paid by the tenant. Moreover, it is unlawful to limit the type of income that pays the rent to be solely from employment as a condition of tenancy, it can be from any lawful source.

Additionally, real estate agents are accountable for their words and actions, regardless of the unlawful instructions from their client. Agents still violate the law even if they claim to be following unlawful instructions from their clients.

Also, another tester took the additional step to explain to Elefante that a voucher is a guaranteed rental payment. Elefante responded on behalf of the landlord that “she doesn’t care about any of that; nobody cares.” This is unlawful; a renter should only need to demonstrate their ability to pay the rent.

Familial Status Discrimination Investigation

Denial of the acceptance of the Making Moves program may constitute both familial status discrimination in addition to Source of Income discrimination. Familial status discrimination may occur if the applicant is denied housing after informing the housing provider of the specific nature of the program, such as Making Moves, which was designed to provide opportunities to families with minor children to live in more resourced areas.

The federal Fair Housing Act, New York State Human Rights Law, Suffolk Human Rights Law, and Nassau Human Rights Law prohibit discrimination based on familial status. The law against housing discrimination based on familial status protects any person who is pregnant or has a child or is in the process of securing legal custody of any child under the age of eighteen years old. In addition, it includes anyone under the age of eighteen years old living with their parent, someone with legal custody, or the parent’s designee.

Housing Discrimination Prevents Children from Excelling

The Making Moves program helps individuals acquire housing in high opportunity neighborhoods which provide a wealth of community resources. Persons with housing subsidies are often locked out of finding housing in these neighborhoods. Research by economist Raj Chetty has shown that children raised in these neighborhoods have better educational outcomes, higher employment rates, and increased income as adults.

Reinforcing Fair Housing Rights

Long Island Housing Services, Compass, and Elefante reached a negotiated settlement agreement, including:
• policy changes of Compass adopting a non-discriminatory fair housing policy;
• displaying compliance with fair housing laws;
• participating in fair housing training; and
• monetary damages of $27,500 to Long Island Housing Services, Inc..
People who believe that they have experienced housing discrimination in Nassau or Suffolk Counties, can contact Long Island Housing Services, Inc. at 631-567-5111 ext. 375. Hablamos Español 631-567-5111 Ext. 378 or info@lifairhousing.org

Building our Children’s Futures

“We all have a responsibility to improve the lives of the children in our community,” said Ian Wilder, LIHS Executive Director. “Housing discrimination is not only unlawful; it restricts children’s future opportunities. It undermines the American promise of equal opportunity, yet we repeatedly see discrimination keeping our neighbors from accessing that promise.

“Real estate agents cannot excuse unlawful practices by claiming they are following client orders. New York State mandates fair housing training to retain their license, so they must understand when requests are illegal. Furthermore, the Long Island Board of Realtors provides guidance on Source of Income discrimination, including a public website explaining these laws.

“Despite this support, the market still fails to allow renters to access high-opportunity areas. Elected officials at all levels must act to promote affordable housing in these key areas for our children’s futures. Towns and villages need to update antiquated zoning regulations to prune the costly multiyear approval process for affordable housing, making it as efficient as building single-family homes.

“Furthermore, the federal and state governments should return to building and maintaining affordable housing for low- and middle-income renters, similar to successful initiatives seen in New Jersey, Connecticut, California, Oregon, and Washington State. This will benefit tenants by increasing their housing options, support landlords by ensuring a stable rental market, and boost the economy. Investing in affordable housing will lead to better outcomes for children as they grow into adults, fostering a healthier future for our communities.”
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Founded in 1969, Long Island Housing Services, Inc. is a private, nonprofit HUD-qualified Fair Housing Enforcement Organization and a federally certified Housing Counseling agency. Long Island Housing Services’ mission is the elimination of unlawful discrimination and promotion of decent and affordable housing through advocacy and education. (www.LIFairHousing.org)

The Fair Housing enforcement and advocacy work of LIHS is supported through grants from Enterprise Community Partners.