Nonprofit Can Sue Landlord for Source of Income Discrimination Against Prospective Tenants

A nonprofit housing group sued landlords, real estate agents, brokerage firms, and property management companies, claiming intentional and willful source of income discrimination in violation of NY State and NY City Human Rights law. The group said that the defendants willfully and intentionally refused to rent apartments to people who intended to pay rent with CityFHEPS vouchers. The housing group also claimed it had been injured by having to expend resources to investigate and to respond to the defendants' discriminatory practices, diverting their resources.

Landlords and other defendants asked the court to dismiss the case, claiming that the housing group had no standing to maintain these claims.

The court ruled against the defendants, noting that the appeals court for this district had made narrow exceptions concerning standing, in order to allow groups like the plaintiff to assert rights on behalf of often marginalized and silenced communities in the housing or civil rights context. Landlords also argued that the plaintiff failed to state a claim. But the group's use of fictitious applicants didn't bar its claims because defendants' complete refusal to deal with any applicants using a CityFHEPS voucher removed the need for the housing group to plead specific violations.

Housing Rights Initiative Inc. v. Elliman: Index No. 154472/2022, 2023 NY Slip Op 30038(U), NYLJ No. 1674485435 (Sup. Ct. NY; 1/9/23; Rosado, J)