DC settles historic case against rental companies accused of housing discrimination

Three real estate companies and their executives will pay landmark fees for discriminating against renters who use housing vouchers, authorities announced Thursday.

The $10 million penalty settling a lawsuit filed against DARO Management Services, DARO Realty and Infinity Real Estate is the largest in a housing discrimination case in U.S. history, Washington, D.C., Attorney General Karl Racine told reporters.

Racine said investigators uncovered “mountains of evidence” showing DARO violated civil rights and consumer protection laws, discriminating against housing voucher holders by refusing to accept certain subsidies, charging voucher users extra fees and posting discriminatory ads, and using different application standards for those with vouchers in its 15 buildings.

Racine drew historical parallels to the case, noting that those who practice discriminatory housing policies reinforce Jim Crow-era racism as most D.C. residents who use housing vouchers are Black. 

About 11,500 families in the nation’s capital rely on housing vouchers.

“Those that stand in the way of the full and proper implementation of these voucher programs reinforce the very racism that is reminiscent of Jim Crow,” Racine said. “This includes policymakers, developers, and elected officials who listen more to developers.”

“Landlords cannot refuse to rent to prospective tenants simply because they receive housing vouchers or subsidies. They must also treat tenants who use subsidies the same as tenants who don’t. They cannot have separate policies or create policies designed as failures for tenants who use vouchers.”

Under the settlement, DARO will also dissolve its property management business and will be barred from operating in the district.

DARO executive Carissa Barry will be required to forfeit her real estate license for 15 years due partly to evidence that shows her vowing in an email to a colleague to eliminate Section 8 programs from their communities.

“Off the record, I’m doing everything I can to reduce if not eliminate the section eight program from our communities. We have tightened our screening criteria as much as humanly possible. Off the record,” Barry wrote in an email read by Racine.

Racine lauded the settlement as a major victory in a city which has “experienced among the highest levels of gentrification and displacement of longtime Black and brown residents of any city in the country.”

“This is a major victory for our community, and it sends a strong message to real estate firms and professionals,” Racin said. “If you break D.C. law and discriminate against tenants who use any form of housing voucher, the Office of Attorney General will take action.”