IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NORTH DAKOTA
SOUTHEASTERN DIVISION
UNITED STATES OF AMERICA,
Plaintiff,
v.
CA No. A3-99-177
POWERS PROPERTIES;
NCM PROPERTIES, INC.;
TERRACE MANAGEMENT COMPANY;
RICHARD JORDAHL;
WILLIAM BRANDT;
JESSE R. CRAIG; and
VELVA PETERSON,
Defendants.
______________________________
CONSENT ORDER
This action was commenced by the United States of America,
pursuant to section 812(o) of the Fair Housing Act, 42 U.S.C.
§ 3612(o), on December 15, 1999, to enforce the Fair Housing Act,
as amended, 42 U.S.C. §§ 3601 et seq. ("the Act"). The complaint
alleges that Defendants Powers Properties, NCM Properties Inc.,
Terrace Management Company, Velva Peterson, Jesse Craig, Richard
Jordahl, and William Brandt discriminated, on the basis of
familial status, against Keith Stoutenburg, Lisa Stoutenburg, and
Keith Stoutenburg's minor son, Oscar Luke Stoutenburg, in the
operation of the Billmeyer Apartments, a 28-unit building located
at 37 Seventh Street North, Fargo, North Dakota.
Specifically, the Complaint alleges that Defendants violated
section 3604(a) of the Act, 42 U.S.C. § 3604(a), by raising the
Stoutenburgs' rent, due to the presence of a child in the unit,
so as to deny or otherwise make unavailable housing to the
Stoutenburgs on the basis of family status. The Complaint also
alleges that Defendants raised the Stoutenburgs' rent more than
other tenants who did not have children and that Defendants,
through their agent Defendant Peterson, harassed complainants
after learning that a child was living in the apartment and
prohibited complainants from enjoying public portions of the
apartment complex with their son, thereby discriminating in the
terms, conditions, or privileges of sale or rental of dwellings
because of familial status in violation of section 3604(b) of the
Act. 42 U.S.C. § 3604(b). The Complaint also alleges that
Defendants, through their agent, made, or caused to be made,
statements with respect to the rental of dwellings that indicated
a preference, limitation or discrimination because of familial
status, in violation of section 3604(c) of the Act. 42 U.S.C.
§ 3604(c). Finally the Complaint alleges that within ten days of
receiving notice from HUD of the Stoutenburg's fair housing
complaint, defendants falsely accused Keith and Lisa Stoutenburg
of not paying rent for the month of June 1995, threatened them
with collection action if they did not pay the rent within ten
days, and eventually caused derogatory remarks to be placed in
Keith and Lisa Stoutenburg's credit history, thereby coercing,
intimidating, threatening, or interfering with the Stoutenburgs
in their exercise or enjoyment, or on account of their having
exercised or enjoyed, rights granted or protected by the Act, in
violation of Section 818 of the Act, as amended, 42 U.S.C. §
3617.
The Defendants deny the allegations in the complaint.
Defendant Jordahl further points out that his involvement in this
litigation is by virtue of his being an owner of the Billmeyer
Apartments and Terrace Management Company during all or a portion
of the time in question. However, in order to avoid protracted
and costly litigation, the defendants have agreed, along with the
United States, to settle this matter.
Therefore, without a trial or adjudication on the merits,
and without admission of liability by the defendants, the parties
have consented to the entry of this Order, as indicated by the
signatures appearing below.
It is hereby ORDERED, ADJUDGED AND DECREED:
Defendants, their agents, employees, and all persons in
active concert or participation with any of them are permanently
enjoined, with respect to the rental of dwellings1 at the
Billmeyer Apartments as well as at any other locations where they
engage in the sale or rental of dwellings or the management of
such sale or rental of dwellings, from:
- Refusing to rent a dwelling unit, refusing or failing to provide or offer information about a dwelling unit, or
otherwise making unavailable or denying a dwelling unit to
any person because of familial status;
- Discriminating against any person in the terms,
conditions or privileges of rental of a dwelling unit, or in
the provision of services or facilities in connection
therewith, because of familial status;
- Making, printing, publishing, or causing to be made,
printed, or published any notice, statement or advertisement
with respect to the rental of a dwelling unit that states
any preference, limitation or discrimination because of
familial status; and
- Coercing, intimidating, threatening, or interfering
with any person in the exercise or enjoyment of, or on
account of his having exercised or enjoyed, or on account of
his having aided or encouraged any other person in the
exercise or enjoyment of, any right granted or protected by
42 U.S.C. § 3603-3606.
Defendants shall pay the total sum of FIFTEEN THOUSAND
DOLLARS ($15,000.00) to Keith Stoutenburg, Lisa Stoutenburg, and
Oscar Luke Stoutenburg, which shall constitute payment of
monetary relief under 42 U.S.C. §§ 3612(o)(3) and 3613(c). Such
payment shall be made within thirty (30) days after the date of
this Order.
Payment shall be made by certified check, which shall be
sent to counsel for the United States. Counsel for the United
States shall retain possession of the check for each aggrieved
person until a release of that aggrieved person's claims against
Defendants that were raised in this lawsuit, conforming with that
set out at Attachment A, has been signed by or on behalf of that
aggrieved person. Counsel for the United States shall forward
the original releases to counsel for Defendants. Each party
shall otherwise bear its own costs to date in this action.
Mandatory Education and Training
- Defendants shall ensure that all persons associated with the management, rental, or administration of the Billmeyer Apartments or any other property owned or managed by any Defendant shall attend educational training concerning their
responsibilities under federal, state, and local fair housing
laws, regulations, or ordinances. This training session shall be
conducted by a Fair Housing organization agreed upon by the
parties. All persons attending the training session shall
complete a form acknowledging attendance, under penalty of
perjury, which Defendants shall retain.
Defendant Craig may provide certification to the United
States of sixteen (16) hours of fair housing training within the
last twelve (12) months in satisfaction of this requirement.
- Within ten (10) days after the date of entry of this
Consent Order, Defendants shall conduct and complete the
following described educational program for all their agents and
employees with responsibilities for or oversight of the rental of
housing at the Billmeyer Apartments or any other rental
residential property owned or managed by a defendant, to inform
them of the provisions of this Order. Such program shall
include:
- Furnishing to each such employee or agent a copy of this Consent Order, and informing each person, in person, of the duties of Defendants and their employees and agents pursuant to the Order; and
- Securing a signed statement, upon which the parties will agree, from each such employee and agent indicating that he or she has received, read, and understands this Consent Order and Defendants' policy of nondiscrimination and further understands that violation of this Order may result in sanctions against them by Defendants and/or the Court. Defendants shall provide a copy of such signed statement to the United States.
- For the duration of this Order, each new agent or
employee of Defendants with rental or oversight responsibilities
at the Billmeyer or any other rental residential property owned
or managed by any defendant shall be given a copy of and required
to read this Consent Order, and sign the statement described in
Section III.B.1 above, within ten (10) days after the date he or
she commences such an employment or agency relationship.
Defendants shall provide a copy of such signed statement to the
United States.
- The requirements of this section shall not apply to
Defendants Jordahl, Brandt, Peterson, Powers Properties, Terrace
Management Company, or NCM Properties, Inc. as long as they are
not involved in the business of providing rental housing.
However, should any of these defendants again become involved in
the business of providing rental housing at any time during the
duration of this Order, they must advise the United States to
that effect in writing within fifteen (15) days of their re-involvement and must comply with the requirements of this section
within thirty (30) days of their re-involvement into the rental
housing business.
Notice of Non-discrimination Policies
- Within thirty (30) days after the date of entry of this Order, defendant Craig shall provide all current tenants of the Billmeyer Apartments at 37 Seventh Street North, Fargo, North Dakota with a written notice, conforming with that set out at
Attachment B, indicating that defendant Craig follows a policy
of nondiscrimination in housing and that his occupancy policy
contains no restrictions on the rental of units and the provision
of rental services and facilities to families with children.
Defendant Craig shall retain a copy of this notice and provide a
copy of this notice to the United States.
- Within five (5) days after the date of entry of this
Consent Order, Defendants shall take the following steps to
notify the public of his nondiscriminatory policies:
- Post and prominently display in the rental office at the Billmeyer Apartments and any other rental residential property owned or managed by any Defendant, and in any office where there is rental activity and/or personal contact with applicants for units at the
Billmeyer Apartments or any other rental residential
property owned or managed by any Defendant, a poster no
smaller than 10 inches by 13 inches that indicates that
all apartments are available for rent on a nondiscriminatory basis;
- Include the words "Equal Housing Opportunity" in all advertising conducted by Defendants for any rental residential property owned or managed by any Defendant in newspapers (except classified advertisements of less than 5 lines), telephone directories, radio, television
or other media, and on all billboards, signs, pamphlets, brochures and other promotional literature. Those words should be prominently placed and easily legible.
- Include the following phrase in the standard lease used for the Billmeyer Apartments as well as any other
rental residential property owned or managed by any
Defendant:
We are an equal housing opportunity provider.
We do not discriminate because of race,
color, sex, national origin, religion,
handicap or familial status (having children
under age 18).
- The requirements of subsection B of this section shall
not apply to Defendants Jordahl, Brandt, Peterson, Powers
Properties, Terrace Management Company, or NCM Properties, Inc.
as long as they are not involved in the business of providing
rental housing. However, should any of these defendants again
become involved in the business of providing rental housing at
any time during the duration of this Order, they must advise the
United States to that effect in writing within fifteen (15) days
of their re-involvement and must comply with the requirements of
this section within thirty (30) days of their re-involvement into the rental housing business.
Record Keeping and Monitoring
- With respect to the rental of dwellings at the
Billmeyer Apartments, Defendant Craig shall maintain:
- Copies of all signed statements secured pursuant to Sections III.A, III.B, and III.C of this Order;
- Copies of all advertisements that are of display
advertisement size or larger; and
- All rental applications and leases for dwellings at the
Billmeyer Apartments. Applications shall capture at least
the following information: the applicants' names, current
address and telephone number, a description of the dwelling
desired (e.g., number of bedrooms), family composition, rent
and fees to be charged, reason why the application was
accepted or denied, and, if accepted, which unit the
applicant rented.
- During the term of this Order, Defendants shall advise
counsel for the United States in writing within fifteen (15) days
of receipt of any written administrative or legal complaint
alleging housing discrimination against Defendants, or against
any of their employees or agents acting in the scope of their
employment with the Defendants, in regard to any rental
residential property owned or managed by any Defendant. They
shall also promptly provide the United States all information it
may request concerning any such complaint.
- During the term of this Order, Defendant Craig shall
advise the United States, in writing within fifteen (15) days,
any change in ownership or management of the Billmeyer Apartments
at 37 Seventh Street North, Fargo, North Dakota.
- Until final dismissal of this action with prejudice,
Defendants shall preserve all records which are the source of,
contain, or relate to any of the information pertinent to their
obligations under this Order.
- Periodically, upon reasonable notice and request to
counsel for Defendants, Defendants will complete and submit to
the United States the form in Attachment C.
- Upon reasonable notice to counsel for Defendants,
representatives of the United States shall be permitted to
inspect and copy all such records of Defendants at any and all
reasonable times; provided, however, that the United States shall
endeavor to minimize any inconvenience to Defendants from
inspection of such records.
- The requirements of subsections B, D, E, and F of this
section shall not apply to Defendants Jordahl, Brandt, Peterson,
Powers Properties, Terrace Management Company, or NCM Properties,
Inc. as long as they are not involved in the business of
providing rental housing. However, should any of these
defendants again become involved in the business of providing
rental housing at any time during the duration of this Order,
they must advise the United States to that effect in writing
within fifteen (15) days of their re-involvement and must comply
with the requirements of this section within thirty (30) days of
their re-involvement into the rental housing business.
- This Order shall remain in effect for two (2) years from
the date of its entry. This Court shall retain jurisdiction of
this action for purposes of enforcing this Order.
- The above captioned complaint is dismissed without
prejudice. If no action is taken by the United States within
twenty-six (26) months of the date of entry of this Order, then
the above captioned actions against defendants Powers Properties,
NCM Properties, Inc., Terrace Management Company, Richard
Jordahl, William Brandt, Jesse Craig, and Velva Peterson, shall
be dismissed with prejudice.
Remedies for Non-Performance
The parties to this Consent Order shall endeavor in good
faith to resolve informally any differences regarding
interpretation of and compliance with this Order prior to
bringing such matters to the Court for resolution. However, in
the event of a failure by Defendants, whether willful or
otherwise, to perform in a timely manner any act required by this
Consent Order or otherwise to act in violation of any provision
thereof, the United States may move this Court to impose against
the offending defendant any remedy authorized by law or equity,
including, but not limited to, an order requiring performance of
such act or deeming such act to have been performed. The Court
shall retain jurisdiction to enforce the terms of this Order upon
a motion to reopen the case for such purpose.
Any time limits for performance imposed by this Consent
Order may be extended by mutual agreement of the parties.
Any information, documentation, or notification required to
be sent to counsel for the United States, shall be addressed to:
Chief,
ATTN: DJ 175-56-43
Housing and Civil Enforcement Section,
Civil Rights Division,
United States Department of Justice,
Post Office Box 65998,
Washington, D.C. 20035-5998.
ORDERED this ___[7th]___ day of _[November]__, 2000.
________/s/________________
UNITED STATES DISTRICT JUDGE
The undersigned apply for and consent to the entry of this Order:
For the United States:
Isabelle M. Thabault
Deputy Chief
Howard Griffin
Ana Henderson
Attorneys
Housing & Civil Enforcement Section
Civil Rights Division
Department of Justice
P.O. Box 65998
Washington, DC 20035-5998
(202) 514-4713
JOHN SCHNEIDER
United States Attorney
By:___________________
SHON HASTINGS
Assistant United States Attorney
Quentin N. Burdick United States Courthouse
655 First Avenue North - Suite 250
Fargo, N.D. 58108-4932
(701) 297-7400
ND Bar Board ID No. 05084
Attorney for United States
For Defendant Brandt, Craig, Peterson, and NCM Properties:
Steven Marquart
Cahill & Marquart
PO Bx 1238
Moorehead MN 56561-1238
(218) 236-4900
For Defendants Jordahl, Powers Properties, and Terrace
Management Company:
Jeff Bredahl
Bredahl Hill, P.C.
15 Broadway, Ste. 206
First National Bank Building
PO Box 1029
Fargo ND 58107
(701) 298-9363
ATTACHMENT A
RELEASE OF CLAIMS
In consideration for the covenants and agreements made and
reflected in the Consent Order entered in United States v. Powers
Properties, as well as in consideration of the payments required to
be made thereunder, I hereby release all claims, including attorney
fees, that I may have against Powers Properties, NCM Properties,
Inc., Terrace Management Company, Jesse Craig, Richard Jordahl,
Velva Peterson, or William Brandt arising out of, or related to the
aforesaid litigation. I further understand that the release of
claims shall be binding upon my heirs, successors, including Oscar
Luke Stoutenburg, and any and all persons acting in concert with
me.
I also acknowledge that I have had the opportunity to review
the terms of this Release with an attorney of my choosing, and to
the extent that I have not obtained that legal advice, I
voluntarily and knowingly waive my right to do so.
____________________________
Keith Stoutenburg
____________________________
Lisa Stoutenburg
STATE OF ARIZONA
SUBSCRIBED and sworn to before me this _____ day of _____________________, 1999.
_______________________________________
Notary Public
My Commission expires:
ATTACHMENT B
This is to inform you that [defendant] follows a policy of
nondiscrimination in housing in all aspects of his rental property
management business, [name of business], and that [name of
business] neither enforces nor permits any occupancy policy or
procedure which contains restrictions on the rental of apartments
and the provision of rental services and facilities because of
family status (i.e. the presence of children).
If you have any questions about this policy, please contact
the management.
1. "'Dwelling' means any building, structure, or portion thereof
which is occupied as, or designed or intended for occupancy as, a
residence by one or more families, and any vacant land which is
offered for sale or lease for the construction or location
thereon of any such building, structure, or portion thereof."
42 U.S.C. § 3602(b).