The Office of the Attorney General (OAG) has recently announced a significant settlement in the ongoing battle against housing voucher abuse. Petra Management Group, along with associated entities and manager Rashid Salem, has been directed to pay $700,000 and to overhaul its practices. This comes after a lawsuit accused them of effectively blocking affordable housing options for lower-income Washington D.C. residents by manipulating the housing voucher system.
According to the OAG's January lawsuit, Petra had been evading the District’s rent control requirements designed to safeguard affordable housing for those not benefiting from vouchers or other subsidies. Their strategy was to selectively rent to voucher recipients at inflated, government-subsidized rates. To finally resolve this abusive conduct, Petra has agreed to not only compensate with significant monetary penalties but also to publicly advertise available apartments at lawful rates, ensure fair housing training for staff, and submit to three years of OAG's compliance monitoring, according to an Office of the Attorney General for the District of Columbia official statement.
Beth Mellen, Assistant Deputy Attorney General and Senior Counsel for Housing Protection and Affordability, expressed a strong stance against such discriminatory practices, stating, "Too many DC residents are already struggling to find an affordable place to live, and the Office of the Attorney General will not tolerate source of income-based housing discrimination that further limits affordable housing options." This sentiment was echoed by Councilmember Janeese Lewis George, who hailed the settlement a win for tenants across Ward 4 and DC who suffered under Petra's profit-driven tactics.
Councilmember Robert White also chimed in, condemning Petra's prioritization of profits over people's needs for safe, affordable housing. "Deliberately impeding our neighbors' right to live affordably while profiting off them at their own expense is simply unjust," he told the OAG. With this settlement, Petra will need to dramatically change how it leases and advertises, extending beyond the properties named in the lawsuit to their entire rental portfolio in the District.
All rent-controlled units owned, managed, or operated by Petra must now be advertised at regulated rates through public forums, as detailed in the settlement. Moreover, Petra is mandated to provide all staff involved in property management or leasing with fair housing training. To track compliance, the OAG will require annual documentation for the next three years, ensuring Petra upholds their end of the settlement, which aims to rectify a scheme that once unlawfully discriminated against potential tenants based on income. With the court's final approval pending, the settlement signifies a progressive step towards enforcing fair housing rights in the District.
