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Published on September 19, 2024
Bay Area Landlord Settles for $137,500 After Alleged Discrimination Violating Fair Housing Act in BurlingameSource: Google Street View

In a recent development, the Justice Department has reached a settlement with Melinda Bautista Teruel, a former landlord from the Bay Area, who faced allegations of discrimination against a family with two young children.

After being accused of violating the Fair Housing Act, Teruel is now mandated by a consent order, as Judge Maxine M. Chesney approved, to disburse $137,500 to the couple who complained. The agreement, sold after the controversy unfurled, also stipulates that Teruel must undergo training on FHA compliance, develop a non-discrimination policy, employ a property manager, and submit compliance reports if she ventures back into the residential rental market within the next three years.

The issue originated from Teruel's management of a seven-unit apartment complex in Burlingame, where the complainants resided from 2017 to 2020. According to a statement from the Justice Department, Teruel allegedly pressured the family to move out of their one-bedroom apartment as they were expecting their first and later their second child, even though the Fair Housing Act prohibits such discrimination based on familial status.

"Housing providers must always comply with federal civil rights laws. They cannot discriminate based on national origin, race, or other protected characteristics, including familial status," remarked Ismail J. Ramsey, as per the U.S. Department of Justice. His statement underscores the commitment to enforcing the Fair Housing Act and ensuring accessible and inclusive housing for all families. Filed last year on July 17, 2023, the lawsuit detailed how Teruel conveyed to the family that a one-bedroom unit was unsuitable for families and that children cause more wear and tear, supposedly leading to false damage claims when the family asserted their legal rights against discrimination.

When the family, unable to contend with the landlord's persistent pressure, vacated the premises, they filed a complaint with the Department of Housing and Urban Development (HUD). HUD’s investigation concluded that Teruel flouted the FHA by her discriminatory practices based on familial status. Assistant U.S. Attorneys David DeVito and Kelsey Helland, alongside the Civil Rights Division, managed the joint handling of the case. Individuals who encounter housing discrimination can report their experiences to the Justice Department and HUD via phone or online. It's important to note, as the Justice Department emphasizes that the claims resolved by the agreement are simply allegations with no determination of liability.