Former Landlord Fined $137,500 Over Housing Discrimination

BURLINGAME, CA — A Burlingame landlord has settled with a federal court over allegations she discriminated against a couple and their two children based on their familial status, the U.S. Attorney's Office said Wednesday.

Melinda Bautista Teruel is required to pay $137,500 to the couple.

According to the U.S. Department of Justice, Teruel managed a two-story, seven-unit apartment complex in Burlingame where the family lived from 2017 to 2020. The government alleged that when Teruel learned the couple was expecting their first child, she told them that a one-bedroom apartment is not for families. Then when she learned they were expecting a second child, she threatened to evict them.

The lawsuit alleged that Teruel told the couple that families cause more wear and tear and repeatedly pressured them to move from their one-bedroom unit into a larger apartment, prosecutors said. The lawsuit also alleged that Teruel falsely claimed damage to the unit after the couple told Teruel that discrimination against families is illegal and that the family vacated the unit because of Teruel's continuing pressure.

After vacating the apartment, the couple filed a complaint with the U.S. Department of Housing and Urban Development, or HUD.

Based on its investigation, HUD determined that Teruel violated fair housing laws by discriminating based on familial status and issued a charge of discrimination. HUD then referred the matter to the Justice Department when the couple chose to have the matter decided in federal court.

Filed on July 17, 2023, the lawsuit said that Teruel violated the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status (includes making housing unavailable to families with children, making discriminatory statements about them, and harassing tenants because they are pregnant or have young children).

According to the U.S. Attorney's Office, Teruel sold the Burlingame property after the family's tenancy. The settlement also requires that, if Teruel acquires another residential rental property over the next three years, she must undergo training on fair housing compliance, develop and implement a nondiscrimination policy and complaint procedure, hire a property manager, and submit regular reports concerning her compliance with the order.

"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," said Ismail Ramsey, U.S. Attorney for the Northern District of California.

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