AG Says Westchester Realty Firm's 'Discriminatory' Practices Halted

WESTCHESTER COUNTY, NY — A brazen attempt to circumvent protections for low-income renters that ran afoul of the law, has been ended with an historic settlement, according to the New York State Attorney General

New York Attorney General Letitia James announced an agreement on Tuesday with real estate company and property manager, Platzner International Group, its owners Merrick Platzner and Harrin Platzner, and their various properties for denying housing to low-income residents in Westchester County.

Platzner and its related entities own more than 200 residential units across four multi-building complexes and are property managers for an additional 14 residential complexes, primarily in Pelham Manor, New Rochelle and Rye. In November 2021, the AG's office launched an investigation into Platzner based on undercover testing done by Housing Rights Initiative that revealed that the company had an explicit policy of refusing to rent units to Section 8 voucher holders in certain buildings. Apartment listings from the New Rochelle firm stated, "Sorry, NO section 8," and a representative from the Housing Rights Initiative was told that the realty company "does not take Section 8" at one of their buildings, according to the AG.

The Office of the Attorney General, with assistance from the Housing Rights Initiative, found that Platzner violated federal, state, and local fair housing laws by denying housing to low-income New Yorkers with Section 8 Housing Choice vouchers. As a result of an agreement with the AG's office and a separate settlement with Westchester Residential Opportunities (WRO), a local fair housing group who brought their own litigation against Platzner for their discriminatory behavior, the company must set aside 20 units in its portfolio for applicants using Section 8 vouchers or other housing subsidies.

"Housing enforcement is the difference between a family being able to use their housing voucher and being homeless," Executive Director of Housing Rights Initiative Aaron Carr said. "We thank Attorney General James and her team for their partnership in proactively and systematically enforcing New York state’s anti-discrimination laws and holding brokers and landlords accountable."

Platzner must now also waive broker fees for any prospective tenant using housing subsidies for the next five years and pay $10,000 to Housing Rights Initiative and $95,000 to WRO in damages.

"Every New Yorker, regardless of their income, deserves a place to live," James said in a statement. "Denying housing opportunities to low-income New Yorkers simply because they have a housing voucher is not only illegal, it worsens our affordable housing crisis. This agreement will help ensure that renters are treated fairly and will make it clear to brokers and landlords that discrimination will not be tolerated in New York. I want to thank the Housing Rights Initiative and Westchester Residential Opportunities for their help with this investigation and their ongoing and dedicated work to fight housing discrimination in our communities."

The OAG investigation also found that the company asked illegal questions to prospective tenants on their rental applications, inquiring about potential tenants' sex and marital status, a violation of New York’s Human Rights Law and federal fair housing law.

In addition, the OAG investigation found that the realty company claimed in their rental application that the application fee was as high as $50, a violation of New York state law which mandates they do not exceed $20.

"We are pleased to be able to work with Attorney General James’ Office to fight discrimination against voucher holders who are denied equal access to housing opportunities solely because of their lawful source of income," Executive Director of Westchester Residential Opportunities Marlene Zarfes said of the agreement. "Source of Income discrimination is widespread and targets the most vulnerable of our society. This settlement should remind housing providers of their equal housing obligations and help to increase housing opportunities for voucher holders as intended under state and county fair housing laws."

Housing discrimination based on source of income is illegal under fair housing and human rights laws. Owners, landlords, property managers, rental agents and brokers are barred from refusing to accept potential tenants solely because they receive lawful housing assistance. Government-issued rental vouchers, such as the Section 8 Housing Choice voucher program, provide housing assistance to the lowest-income households to rent housing in the private market. The AG pointed out that these programs also aid senior citizens and disabled persons on fixed incomes, displaced families, and homeless individuals with disabilities.

Platzner will also implement an anti-discrimination policy that conforms with federal, state, and local housing laws, and explicitly include in all rental listings that Section 8 vouchers will be accepted.

In addition, the Platzners, their staff, and partners will have to undergo mandatory training on relevant federal, state, and local fair housing laws and be subject to random compliance testing, according to the agreement.

This isn't the first time in recent months that James has taken action in fighting housing discrimination and protecting low-income tenants. Last year, she took action to stop “tenant blacklisting”and partnered with HRI to stop the real estate company Compass from denying housing to low-income New Yorkers. In July 2022, James recovered nearly $300,000 of illegally withheld security deposits for Brooklyn tenants. In April 2022, she sued Brooklyn-based eviction lawyers for engaging in deceptive rent collection practices and initiating frivolous lawsuits against New York tenants.

"Attorney General Letitia James is looking out for all New Yorkers — and Westchester residents — by ensuring all have a fair shot when looking for a place to live," Westchester County Executive George Latimer said. "We are facing a housing crisis and increasing access to those in need is one step toward solving this longstanding challenge."

This case is being led by Sandra Giorno-Tocco, Assistant Attorney General for Public Advocacy in the Westchester Regional Office of the Attorney General led by Jill Faber, Deputy Attorney General for Regional Affairs and Jane Landry-Reyes, Assistant Attorney General in the Housing Protection Unit, led by Brent Meltzer, Chief of the Housing Protection Unit. The Housing Protection Unit is a part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.