NEW FHJC SETTLEMENT SENDS MESSAGE TO HOUSING PROVIDERS
The Fair Housing Justice Center (FHJC) announced today that a settlement has been reached in its lawsuit alleging source-of-income discrimination at a Queens apartment building.
The named Defendants are Beaudoin Realty Group, Inc., licensed real estate agents Stephanie Beaudoin and Michele Beaudoin, and the owner and manager of the building.
The lawsuit stems from an investigation conducted by the FHJC in October and November 2021, in which undercover testers posing as renters contacted Beaudoin Realty to inquire about an online listing for an available apartment in the building.
Testers who claimed to derive their income solely from employment were met with enthusiasm. The agent eagerly responded to emails and texts, scheduled viewings, and encouraged the testers to submit applications for the unit.
By contrast, testers who stated they would be using a Housing Choice Voucher (commonly referred to as “Section 8”) to pay their rent were met with resistance and discourtesy. Although the rent was well within voucher limits, and the voucher would cover the security deposit and broker’s fee, the agent repeatedly claimed to have “no idea” whether the building would “accept” the voucher, and avoided repeated calls and text messages from the testers with vouchers.
These testers’ credit scores, despite being equivalent to the credit scores of the testers with income solely from employment, were scrutinized and disparaged. One tester with a voucher who managed to secure a tentative viewing appointment before informing the agent about their voucher was later flatly told: “I don’t want you to come here,” according to the complaint.
While denying the allegations, the defendants agreed to pay $303,800 in damages and costs and will participate in extensive injunctive relief, including:
- Refraining from discrimination on the basis of lawful source of income
- Applying neutral policies, procedures, and rules to all rental applicants
- Adopting an equal housing opportunity policy which will be distributed to all owners, members, principals, employees, and contractors
- Including fair housing logos and/or language in all advertisements and listings
- Prominently displaying fair housing posters from the US Department of Housing and Urban Development, the New York State Division of Licensing Services, the New York State Division of Human Rights, and the New York City Commission of Human Rights in their offices
- Fair housing training – including training on the legal requirements relating to source of income – for all employees, independent contractors and agents who have any contact with potential tenants
- Retaining certain records to document compliance with the Settlement’s terms
The settlement was so-ordered by New York State Supreme Court Judge Hon. Timothy J. Dufficy on January 8, 2026. It can be read in its entirety HERE.
“This settlement sends a clear message: it’s time for housing providers to take source-of-income laws seriously,” said FHJC Legal Director David Berman. “These protections are real, and so are the consequences for ignoring them.”
Attorney Ali Frick who represented the FHJC stated, “I am gratified that, after many years of litigation, we were able to resolve this case, ensure that this broker and owner understand their full obligations under the State and City Human Rights Laws, and help open up more housing to New Yorkers who need it.” Ms. Frick is with the law firm Kaufman Lieb Lebowitz & Frick, LLP.
The mission of FHJC, a nonprofit civil rights organization, is to eliminate housing discrimination; promote policies and programs that foster open, accessible, and inclusive communities; and strengthen enforcement of fair housing laws in the New York City region.