A rent break meant for Ukrainian families fleeing war has turned into a courtroom fight in Palo Alto, where two tenants say their landlord’s generosity to newcomers came at their expense.
Tenants Stuti Kochhar and Pavel Zheltov have sued the owners of Stellar Court Apartments, claiming they were charged different, and sometimes higher, rent terms while some Ukrainian families received free or reduced rent. The couple say they were hit with as much as $500 in extra monthly charges after moving into a larger one-bedroom to make room for their growing family. They are seeking roughly $106,000 in damages and attorneys’ fees, and the case is working its way through Santa Clara County courts.
What the lawsuit says
The lawsuit, filed in March 2025, names Stellar Court Apartments and owners Bill and Steve Reller, and says the couple live at Staller Court Apartments. According to the complaint, Kochhar and Zheltov were charged up to $500 more than other tenants and saw their rent reach $3,425 per month in October 2021. The suit claims some Ukrainian families were given free or reduced-rate units and more relaxed rules, including permission to operate unlicensed businesses out of certain apartments.
The complaint also points to a June 2022 letter in which Bill Reller allegedly offered to guarantee a year of free housing for a Ukrainian family at 345 Forest Avenue. Those details were first reported by Palo Alto Online.
Why familial status matters
At the center of the dispute is whether Kochhar and Zheltov were penalized for having a growing family. Under federal and state fair housing laws, familial status is a protected class, which means landlords cannot treat households with children differently from other tenants.
The Justice Department notes that the federal Fair Housing Act bars housing providers from imposing special requirements on families with children, and the California Civil Rights Department enforces similar protections at the state level. Kochhar and Zheltov argue these rules were violated when they were charged more after changing units to accommodate their child.
Landlord response and court fight
The owners are not backing down. Court records show that Stellar Court Apartments and the Rellers filed a demurrer, essentially asking the judge to toss the case at an early stage, along with a request for $5,850 in sanctions.
Judge Daniel T. Nishigaya rejected both moves on May 15, denying the demurrer and the sanctions request and allowing the case to continue. A hearing is set for June 1 at the Santa Clara County Superior Court in San Jose to address remaining procedural issues and decide what comes next.
According to Palo Alto Online, the defendants, speaking through Steve Reller, deny the allegations and say they intend to defend themselves. The attorney for Kochhar and Zheltov has declined to comment publicly.
What’s at stake
The upcoming hearing could determine whether the case advances to discovery and, eventually, trial. It may also help clarify how far landlords can go when offering special housing deals to refugees without running afoul of anti-discrimination rules.
For other renters in Palo Alto’s tight housing market, the dispute puts a spotlight on the friction that can arise when landlords extend targeted help to newcomers while long-term tenants say they are being treated unfairly. Expect the June hearing in San Jose to focus on the written filings and whether Kochhar and Zheltov have laid out a legally sufficient discrimination claim based on their family status.
