On February 13, 2013, HUD announced that a homeowners association and managers in Edina, MN will pay more than $40,000 under a Consent Order for refusing to allow children under the age of 18 to live at the property.
HUD charged 7000 Sandell Condominium Association, Inc., its property management company, and the property’s off site manager, Paul Bonzonie, with violation of the Fair Housing Act for having a policy that prohibited children from living in the building.
The owner of the building claimed that they were a senior housing property, which may lawfully exclude children. However, HUD determined that the Association failed to formally and routinely verify the ages of the complex’s residents – a requirement in order to claim the status of senior housing.
The plaintiff and his wife stated that they were told by the Condo Association that they were violating the rules of the complex by allowing their minor children to live with them for more than 30 days in a calendar year. The Association fined the residents and filed suit in State court in an attempt to prevent the children from living at the complex. HUD found that due to the failure to properly verify the age of residents, the property does not meet the requirements as Housing for Older Persons, and is therefore a family property.
Under the terms of the consent order, the Association, property management company, and off-site manager will pay the plaintiff $30,000, pay his attorney $12,200, and allow the couple and their children to live at the property without fear of retaliation or harassment.
There are two lessons to take away from this case: (1)Individual managers may be sued and fined under fair housing law; and (2) if you operate senior properties, be sure you have a formal system for verifying the age of all your residents.