$400K awarded to low-income renters in NYC discrimination probe: AG
NEW YORK (PIX11) – An apartment management company must pay $400,000 to low-income renters who were unlawfully denied housing opportunities throughout New York City, state Attorney General Letitia James announced Tuesday.
An investigation into Shamco Management Corp. found the company violated New York’s human rights laws by refusing to rent to potential renters using a Section 8 subsidized voucher, according to court documents.
“Housing is a human right, and everyone deserves fair access to housing, regardless of their source of income,” said James. “Shamco’s discriminatory practices against voucher holders denied hardworking families the opportunity to secure stable housing and further exacerbated our housing crisis. My office will always stand up to ensure all New Yorkers are afforded equitable opportunities to find safe and affordable housing.”
An investigation into the management company started in 2021, officials said.
Shamco owned or managed a real estate portfolio of 1,300 units, including more than a thousand rent-stabilized units in Manhattan and Brooklyn. The company intentionally ignored potential tenants who disclosed using a government voucher and allegedly inflated rental rates above the voucher limits, officials said. Shamco told renters an apartment had already been rented when it was in fact still on the market, according to court documents.
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A list of potential renters reviewed by the Office of the Attorney General found that at least 39 of 42 prospective tenants with Section 8 vouchers were marked as “not qualified” regardless of their credit or other qualifying factors. Shamco allegedly told contracted brokers and employees to lie to prospective tenants if they discovered the potential renter had a voucher during the apartment tour. As court documents stated, employees were encouraged to tell renters the unit had been rented if the potential renter followed up on the application status.
In at least one instance, a Shamco employee stopped responding to an applicant with cancer who had scheduled an apartment tour. Another applicant in the shelter was “ghosted” due to his voucher status, according to the Office of the Attorney General.
In the latest class action by the attorney general, Shamco has been ordered to pay $400,000 in restitution to those illegally denied housing. The company must also rent 65 units from its apartment portfolio to voucher holders. If Shamco fails to meet this obligation, it will be fined $1,000 monthly for each unit. The New York State Attorney General’s Office will monitor the settlement’s compliance for three years.
Matthew Euzarraga is a multimedia journalist from El Paso, Texas. He has covered local news and LGBTQIA topics in the New York City Metro area since 2021. He joined the PIX11 Digital team in 2023.