RI Sues National Real Estate Firm, Accuses It Of Charging Illegal Fees

NORTH KINGSTOWN, RI — Rhode Island Attorney General Peter Neronha has filed a lawsuit against national real estate management firm A.R. Building Company, Inc. (ARBC), accusing the corporation of charging renters illegal application fees and discriminatory behavior

According to the complaint, A.R. Building violated Rhode Island’s Unfair and Deceptive Trade Practices Act at its properties in Cumberland, East Providence, North Kingstown, and North Smithfield.

The lawsuit, which was filed in Providence County Superior Court, accuses ARBC of charging illegal application fees, sometimes more than once for the same prospective tenant. It also accused the company of designing and implementing an arduous application process for those seeking reasonable accommodations for disabilities.

Neronha is seeking civil penalties and injunctive relief, including requiring ARBC to stop charging excessive application fees, stop its discriminatory application processes, and return unlawfully charged fees to consumers, his office said.

"It’s news to no one that we are in the midst of a severe housing crisis in Rhode Island, and those who implement illegal barriers to finding a home must be held accountable," Neronha said. "In the last 18 months alone, we have brought complaints against landlords for exposing children to lead paint, residential solar companies for deceiving consumers, real estate brokers for ruthless bait and switch schemes that rip away family homes, and now against a real estate management company for charging expensive and illegal rental application fees and discriminating against those seeking reasonable accommodations from finding a place to hang their hat."

One example mentioned in the complaint was a prospective tenant who submitted two applications to ARBC's property at Dowling Village in North Smithfield in early 2024. According to the complaint, Dowling Village would not let the prospective tenant submit her first application unless she paid $250 for an administrative fee and $30 for a screening fee, ignoring a new state law that prohibits the assessment of rental application fees and limits what a landlord can assess prospective renters for a background check. Without explaining the purpose of these fees or providing copies of the screening documents to the prospective tenant, Dowling Village rejected her application, because they claimed she did not make enough money and would need a co-signer, Neronha's office said.

The same prospective tenant submitted a second application to Dowling Village about a week later, this time with a co-signer. For the second application, Dowling Village again charged the prospective tenant $250 for an administrative fee and $30 for a screening fee, a total of $280, offering no further explanation of the fees, the complaint said. When the prospective tenant requested a fee waiver, citing her previous application, she was denied. Dowling Village rejected her second application, citing credit reasons, according to the complaint.

"When a person or entity deceives, harms, or takes advantage of consumers, that’s where we come in," Neronha said. "A fair marketplace demands that all parties follow the law, and when it comes to housing, Rhode Islanders are struggling enough as it is. We must prioritize making it easier, not harder, for people to obtain safe, affordable housing, and that’s why my office will continue to seek out and hold accountable bad actors who place profits over the basic rights of Rhode Islanders."

Consumers who believe they may have been victims of unfair or discriminatory housing practices can call the Rhode Island Attorney General’s Office at 401-274-4400 or complete an online complaint form.

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