IN THE UNITED STATES DISTRICT COURT
FOR THE CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION
UNITED STATES OF AMERICA,
Plaintiff,
v.
00-08203-AHM
YODER SHRADER MANAGEMENT
COMPANY, INC.; ERVIN E. YODER,
JR., individually and as Trustee
of the ERVIN E. YODER, JR.
FAMILY TRUST; the KEVIN ALLEN
YODER TRUST, the ERIC E. YODER
TRUST, the LARK FOLSOM NORMAN
TRUST, the DIANE ELANORE YODER
TRUST, the DEBORAH JUNE
WILMSHURST TRUST, and the
REBECCA LYNN MATICS TRUST;
FLORINE N. YODER, individually
and as Trustee of the KEVIN
ALLEN YODER TRUST, the ERIC E.
YODER TRUST, the LARK FOLSOM
NORMAN TRUST, the DIANE ELANORE
YODER TRUST, the DEBORAH JUNE
WILMSHURST TRUST, and the
REBECCA LYNN MATICS TRUST;
SHRADER INVESTMENTS, a
California general partnership;
SMITH & SONS PROPERTIES, a
California general partnership;
ALEXANDER M. POWER, individually
and as Trustee of the Alexander
M. Power Retained Income Trust;
HELOISE B. POWER, individually
and as Trustee of the HBT Trust;
EL DORADO PROPERTIES, a
California general partnership;
FULLERTON PINES APARTMENTS, a
California general partnership;
and YORBA LINDA APARTMENTS-II, a
California general partnership,
SUZANNE BERMINGHAM, WILLIAM
RICHARDSON, LETHA RICHARDSON,
SHARON DEERING, HAROLD DEERING,
PAT EKELUND, BONNIE RITCHIE,
CHERYL LEINSEFELDER, ANN KRAMER,
EVA WHETSTONE, MARGO SANCHEZ,
JOHN SANCHEZ AND KATHRYN
WALTERS,
Defendants.
__________________________________
CONSENT ORDER
The Fair Housing Council of Orange County (FHCOC) and the United
States filed complaints on April 21, 2000, and May ____, 2000,
respectively. Both actions were brought pursuant to the
Fair Housing Act of 1968, as amended by the Fair Housing
Amendments Act of 1988, 42 U.S.C. §§3601 et seq. ("the Act");
FHCOC also asserted state law claims under the California Fair
Employment and Housing Act, California Government Code §§12955 et seq., and the California Business and Professions Code, §§17200 et seq. and a common law cause of action for negligence. Both
complaints allege that the defendants have been engaged in a
pattern or practice of discrimination against persons on the
basis of race or color, national origin, and familial status in
violation of the Act, 42 U.S.C. §3604, in the rental of dwellings
at the following apartments they own and/or manage:
- Nutwood East Apartments - 248 units; 2456 East Nutwood
Avenue, Fullerton, CA;
- Elmwood Apartments - 50 units; 8602 Western Avenue,
Buena Park, CA;
- Idylwood Apartments - 84 units; 1800 Brea Boulevard,
Fullerton, CA;
- Kashmir Apartments - 25 units; 210 West Union Avenue,
Fullerton, CA;
- El Dorado Apartments - 257 units; 3060 Madison Avenue,
Fullerton, CA;
- Pines Apartments - 229 units; 3340 Topaz Lane,
Fullerton, CA;
- Sturbridge Village Apartments - 196 units; 3020 Yorba
Linda Boulevard, Fullerton, CA; and
- Moonraker Apartments - 90 units; 2901 East Nutwood
Avenue, Fullerton, CA.
The defendants deny that they have taken any actions
which violate the Act or any other state or federal law. The
parties desire to avoid the cost and uncertainty of protracted
litigation and agree that this dispute should be resolved without
the necessity of an evidentiary hearing or further court action.
Therefore, the parties have agreed to the entry of this Consent
Order, as indicated by the signatures appearing below. The
defendants, FHCOC, and the United States fully anticipate that
compliance with the provisions of this order will ensure
compliance with the Fair Housing Act.
Therefore, it is hereby ORDERED, ADJUDGED and DECREED:
- All defendants, their agents, employees, successors, and all persons in active concert or participation with any of them,
are enjoined, with respect to the rental of dwellings at the
Apartments(1) and at any other locations at which any of the
defendants engages in the rental of dwellings, from:
- Refusing to rent a dwelling unit, refusing to negotiate for the rental of 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 race, color, national origin, or
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 race, color, national origin, or 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
based on race, color, national origin, or familial status,
or an intention to make such a preference, limitation, or
discrimination;
- Representing to any person because of race, color, national
origin, or familial status that any dwelling unit is not
available for inspection or rental when such dwelling unit
is, in fact, so available; and
- Engaging in any other discriminatory housing practice
prohibited by 42 U.S.C. §§3601 et seq.
- The provisions of Paragraph 1 shall apply to all residential rental properties in which the defendants have an ownership or management interest, whether individual or jointly with others.
- The following provisions of this Order shall apply only to the defendant, Yoder-Shrader Management Co., or any other person or entity to whom defendants delegate responsibility relating to the rental of apartments identified at page 3 of this Order, their employees or agents, including but not limited to all residential property managers, present and
future.
- Nondiscriminatory Rental Policies and Procedures
- Within 45 days after the date of entry of this Order, the defendants shall adopt objective, non-discriminatory standards and procedures for the processing of applications, the establishment of waiting lists (if used), and the
approval of applicants for the rental of available dwelling
units and/or positions on waiting lists (if used) at each of
their rental properties. These standards and procedures
shall be applied to all applicants and prospective
applicants without regard to race, color, religion, national
origin, sex, handicap, or familial status. A copy of these
standards and procedures shall promptly be provided to
counsel for the United States(2) and the FHCOC. These standards and procedures shall be implemented within fifteen
days after their receipt by the United States and the FHCOC,
unless either objects to the proposed change in writing
within those fifteen days. In that event, the standards and
procedures shall not be implemented until the parties have
resolved their dispute or, in the event they are unable to
resolve it, the Court has resolved it. Upon their
implementation, the defendants and all their rental
employees and agents shall adhere to these written policies
and procedures.
- A summary of these standards and procedures shall be posted in the rental office at each apartment complex and in any
office where there is rental activity and/or personal
contact with applicants for rental units, and a copy of the
summary of these standards and procedures shall be provided
to current tenants and to any applicant for a rental unit at
the Apartments. This summary shall include the telephone
numbers of the Yoder-Shrader headquarters office and HUD's
Office of Fair Housing and Equal Opportunity in the event an
individual has a complaint. For the duration of this Order,
these rental standards and procedures may be modified only
upon thirty (30) days prior written notice to counsel for
the United States and the FHCOC. In the event that the
United States or the FHCOC objects to the proposed change in
writing within twenty days of receipt of notice, the change
shall not be implemented until the parties have resolved
their dispute or, in the event they are unable to resolve
it, the Court has resolved it.
- The defendants shall, with respect to dwellings rented at the Apartments:
- Maintain an accurate list of all dwellings known or expected to be available for rental, including for each unit the
apartment number, number of bedrooms, monthly rent, and
deposit requirements;
- Inform prospective applicants who inquire about renting of
all available units of the type requested, and, if no unit
is available, inform the prospective applicant about the
availability of a waiting list (if one is maintained);
- Permit all prospective applicants the opportunity to
complete a written rental application and/or to be placed on
a waiting list, if one is used, which shall be maintained
pursuant to subparagraph (d) below; and
- If defendants so choose for any one or all of their
apartments, to maintain a waiting list, they will submit the
proposed policies and procedures promptly to the FHCOC.
These policies and procedures shall be implemented within 15
days after their receipt by the FHCOC, unless it objects to
the proposed policies and procedures in writing within those
15 days.
- Within thirty days of the date of entry of this Order, the defendants shall prepare a written company-wide
nondiscrimination policy, which shall promptly be submitted
to counsel for the FHCOC and the United States for their
review and approval. Within sixty days after the parties
have reached agreement on the terms of such policy, the
defendants shall provide a copy of this policy to all their
tenants and to all applicant referral services, including
local college housing offices, whose services they use or
which to their knowledge refer applicants to them. The
defendants shall also then provide a copy of this policy to
all of its employees or agents with responsibility relating
to the rental of dwellings and secure their signatures
acknowledging its receipt and agreeing to abide by it.
- Mandatory Education and Training
- Within sixty days of the entry of this order, the defendants, as well as their managers, rental agents, and all other persons with any responsibility with respect to
the rental of apartments shall attend a program of
educational training concerning their responsibilities under
federal, state, and local fair housing laws, regulations, or
ordinances. The defendants have agreed with the FHCOC that
the FHCOC shall provide this training. The cost of this
training shall be borne by the defendants, and is included
in the monetary payment set out below in Paragraph 18. All persons attending this program shall have their attendance
certified in writing by the person conducting the
educational program.
- Within 30 days after the date of entry of this Consent Order, the defendants shall furnish to their employees and
agents with housing rental responsibilities a written
summary of this Consent Order informing them of their duties
and responsibilities under this Order. Defendants shall
provide FHCOC with verification that this has occurred and
that defendants have secured a signed statement of
Attachment A from each such employee and agent.
- For the duration of this Order, each new employee or agent of the defendants with housing rental responsibilities at
any of the defendants, complexes shall be given a summary of
this Consent Order and sign the statement appearing at
Attachment A within ten (10) days after the date he or she
commences an employment or agency relationship with any of
the defendants.
- In order to further assure the development of a good working relationship between the FHCOC and the defendants in
furtherance of their mutual goal of furthering fair housing,
for the duration of this Order, all Yoder-Shrader employees,
present and future, with any responsibility relating to the
rental of apartments shall attend on an annual basis, a
half-day fair housing management training course provided by
the FHCOC. The costs of this training shall be borne by the
defendants, with the costs included in the monetary payment
set out below in Paragraph 18.
- Notification to Public of Nondiscriminatory Policies
- Within ten (10) days after the date of entry of this Consent Order, the defendants shall take the following steps to notify the public of their nondiscriminatory policies:
- Post and prominently display in the rental office at each of defendants, complexes, and in any office where there is
rental activity and/or personal contact with applicants for
units in defendants, complexes, a Fair Housing Poster which
also includes the telephone number and address of the FHCOC;
- Include the words "Equal Housing Opportunity" or the fair
housing logo in all advertising conducted by defendants for
any of defendants, complexes in newspapers, telephone
directories, or other media, and on all banners, signs,
pamphlets, brochures and other promotional literature. The
words or logo should be prominently placed and easily
legible. In addition, all advertising placed by defendants
subsequent to the date of entry of this Order shall conform
to the provisions of the applicable HUD advertising
guidelines, formerly codified at 24 C.F.R. Part 109; and
- Include the following phrase in the standard rental
application and rental agreement used for each of
defendants' complexes in bold print equal in size to the
text of the document:
We are an equal housing opportunity provider. We do not
discriminate on the basis of race, color, sex, national
origin, religion, handicap, familial status (having children
under age 18), source of income, marital status, sexual
preference, ancestry, or any arbitrary reason based on any
personal characteristic.
- Record Keeping and Monitoring
- With respect to the rental of dwellings at each of the Apartments, the defendants shall, for the duration of this Order:
- Maintain an Availability List which includes the address or unit number of each dwelling known to be available for
rental, the number of bedrooms in each such unit, the
monthly rent for each such unit, the required deposit amount
to move into the unit, the date the defendants were first
informed it would be available for rental, and the first
date it would be available for rental or occupancy by a new
tenant.
- Maintain guest cards of all people who inquire in person
about the availability of rental units, providing for the
date of inquiry, and their name, current address, telephone
number.
- Maintain all Waiting Lists (if used) prepared pursuant to
Paragraph 6d above.
- Six (6) months after the date of entry of this Order, and six (6) months thereafter for a period of five (5) years,
the defendants shall deliver to counsel for the United
States and the FHCOC a report covering the preceding six
months containing the following information:
- Certification of all signed statements secured pursuant to Paragraphs 9 and 10 of this order;
- Copies of the Availability Lists, Guest Cards, Rental
Applications, and Waiting Lists (if used) maintained
pursuant to Paragraph 6 of this Order;
- Representative copies of any advertisements published in a
newspaper or any other medium during the reporting period,
together with a complete listing of the dates each
advertisement was published; and
The first report submitted pursuant to this Paragraph shall also
include:
- Written verification that the defendant and any other person
required to do so by the terms of this order have attended
the education program mandated by Paragraph 8 of this Order.
- Until final dismissal of this action with prejudice, the 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, including all rental
applications and rental agreements for dwellings at all of
defendants' complexes. Upon reasonable notice to counsel for
defendants, representatives of the United States and/or the
FHCOC shall be permitted to inspect and copy all such
records of the defendants at any and all reasonable times.
- The United States and the FHCOC may take steps to monitor the defendants, compliance with this Order including, but not limited to, conducting fair housing tests at any
properties owned or managed in whole or in part by any of
the defendants to determine whether the defendants are
violating any part of this order.
- The defendants shall enter into a contract with the FHCOC for a program of compliance testing designed both to monitor
compliance with this Order and to deter and detect any
future acts of unlawful discrimination at the Apartments.
The costs of this future compliance testing are included in
the monetary payment set forth in Paragraph 18 below. The
United States or the FHCOC may use the test results for any
lawful purpose, including the initiation of further judicial
proceedings, but only after compliance with the consultation
provisions of Paragraph 26 or the mediation provisions of
Paragraph 24.
- The defendants shall pay the Fair Housing Council of Orange County the sum of $151,000 in compensation for its economic losses, including the diversion of its resources and the
frustration of its corporate purposes, in connection with
the testing and other investigative efforts it undertook to
investigate the defendants' housing practices and in
compensation for the future compliance monitoring efforts
described above. This amount also includes compensation for
the FHCOC's attorneys, fees and costs. This amount shall be
paid by certified check, made payable to Brancart & Brancart
Trust Account, within 15 business days of the entry of this
Order.
- The defendants agree to undertake affirmative,
nondiscriminatory efforts designed to increase the number of
persons applying for residence at their apartments from
those groups against whom they are alleged to have
discriminated. To effectuate this goal, the defendants agree
that, for the duration of this Order, when the defendants
have at least one vacancy in a given month at any of their
apartment developments, they shall advertise a vacancy at
least once in the Sunday edition of the Orange County
Register and in La Opinion.
- In order to enhance the attractiveness of the Apartments to families with children, the defendants have committed to
spend a minimum total of $65,000 to install children's play
equipment at the following complexes: Nutwood East, Pines,
El Dorado, Idylwood, Sturbridge Village, and Moonraker.
- Families with children living in the Apartments at the time of the entry of this Order may, for a period of six months
thereafter, place their names on a list to move to a
different apartment within the complex. The defendants agree
to reimburse such tenants who move into an available
apartment for their actual moving costs up to $250 upon
completion of the move. Such families will be offered the
opportunity to make such a move when an apartment is
available for a period of three years from the date of entry
of this Order.
- The defendants shall pay a civil penalty of $10,000 to the United States, pursuant to 42 U.S.C. §3614(d)(1)(C), to vindicate the public interest. This payment shall be made by certified check payable to the United States Treasury
within fifteen business days of the date of entry of this Order.
Mediation
- Within thirty days from the date of entry of this Order, the defendants shall establish policies and procedures that provide for mediation between management and tenants or
between complex managers and assistant managers and Yoder-Shrader that involve possible housing discrimination based
on race, color, religion, national origin, sex, handicap, or
familial status. Yoder-Shrader shall fund the costs of such
mediation. Such mediation shall be provided by a county-affiliated agency that provides such services under the
Orange County Dispute Resolution Program Act. Defendants
shall promptly notify FHCOC in writing of any request for
mediation and the basis of that request. The defendants
shall notify all tenants and employees of the mediation
program and procedure within thirty days of the date of
entry of this Order and shall also notify future tenants of
this program.
- FHCOC agrees to submit any and all future disputes, claims, or complaints it may have involving alleged violations of
fair housing laws arising from any complexes owned or
managed by the defendants to mediation prior to the filing
of any complaint on its own behalf with a state or federal
agency or court.
- Duration of Consent Order
- This action is dismissed without prejudice. At any time after five (5) years from the date of entry of this Order, the defendants may move for dismissal of this case.
Dismissal shall be granted unless, no later than thirty (30)
days after receipt of the defendants, motion, the United
States or the FHCOC serves a written objection. If an
objection is filed, the Court shall hold a hearing on the
dismissal motion, and the burden shall be on the United
States or the FHCOC to demonstrate why this Order should not
be terminated. If the United States or the FHCOC fails to
meet its burden, or if no objection is timely filed (except
for good cause shown), this Order shall terminate forthwith
and this case 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 the defendants or FHCOC,
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, any of the parties
may move this Court to impose any remedy authorized by law
or equity, and an award of any damages, costs, and
attorneys' fees which may have been occasioned by the
defendants' or FHCOC's violation or failure to perform. The
Court shall retain jurisdiction to enforce the terms of this
Order upon a motion to reopen the case for such purpose.
- To ensure that any costs associated with the defendants' compliance with this Order are not passed on to tenants residing at the Apartments for their having been deprived of
equal housing opportunities, Yoder-Shrader agrees to
continue its rental increase policy of "trying to stay about
ten percent under prevailing rental rates" in the area of
the Apartments.
- In the event either the FHCOC or the defendants decide to issue a press release in connection with the submission or
entry of this Consent Order, they have agreed that it shall
be a joint press release based on this Consent Order.
- Any time limits for performance imposed by this Consent Order may be extended by mutual agreement of the parties.
- Each party to these consolidated actions shall, except to the extent specifically provided to the contrary, bear its
own costs.
SO ORDERED this ______________ day of ________________, 2000.
UNITED STATES DISTRICT JUDGE
FAIR HOUSING COUNCIL OF ORANGE COUNTY, INC.
D. ELIZABETH PIERSON
UNITED STATES OF AMERICA
BURTIS M. DOUGHERTY, Attorney
Civil Rights Division, U.S. Department of Justice
YODER-SHRADER MANAGEMENT CO., INC.
ERVIN E. YODER, President
VJ SHRADER, Vice President
ERVIN E. YODER, JR., individually and as Trustee of the Ervin E.
Yoder, Jr. Family Trust
ERVIN E. YODER, JR.
FLORINE N. YODER, individually and as Trustee of the Kevin Allen
Yoder Trust, Eric E. Yoder Trust, Diane Elanore Yoder Trust,
Deborah June Wilmshursut and Rebecca Lynn Matics Trust
FLORINE N. YODER
SHRADER INVESTMENT, a California General Partnership
RANDEE YODER, a General Partner
WALKER SMITH, III, individually and as General Partner of Smith &
Sons Properties, a California General Partnership
WALKER SMITH, III
ALEXANDER M. POWER, individually and as Trustee of the Alexander
M. Power Retained Income Trust.
ALEXANDER M. POWER
HELOISE B. POWER, individually and as Trustee of the HBT Trust
HELOISE B. POWER
EL DORADO PROPERTIES, a California General Partnership
ERVIN E. YODER, General Partner
FULLERTON PINES APARTMENTS-II, a California General Partnership
ERVIN E. YODER, General Partner
YORBA LINDA APARTMENTS-II, a California General Partnership
ERVIN E. YODER, General Partner
SMITH ESTATE TRUST
WALKER SMITH, JR., individually and as Trustee of the Smith Estate Trust.
SHRADER ENTERPRISES
VJ SHRADER, General Partner
PBO, a GENERAL PARTNERSHIP
REED BAUMAN, General Partner
PINES II, a GENERAL PARTNERSHIP
ERVIN YODER, General Partner
LYL COMPANY, a GENERAL PARTNERSHIP
REED BAUMAN, General Partner
YBS, a GENERAL PARTNERSHIP
ERVIN YODER, General Partner
SUZANNE BERMINGHAM
WILLIAM RICHARDSON
LETHA RICHARDSON
SHARON DEERING
HAROLD DEERING
PAT EKELUND
BONNIE RITCHIE
CHERYL LEISENFELDER
ANN KRAMER
EVA WHETSTONE
MARGO SANCHEZ
JOHN SANCHEZ
KATHRYN WALTERS
U.S. DEPARTMENT OF JUSTICE
CIVIL RIGHTS DIVISION
BURTIS DOUGHERTY
Attorneys for the UNITED STATES OF AMERICA
BRANCART & BRANCART
CHRISTOPHER BRANCART
Attorneys for FAIR HOUSING COUNCIL OF ORANGE COUNTY
JEFFER MANGELES, BUTLER & MARMARO LLP
MARTA M. FERNANDEZ
Attorney for YODER-SHRADER MANAGEMENT CO., INC.
1. For the purposes of this Order, "dwelling" shall have the
same meaning as it does in the Fair Housing Act, 42 U.S.C.
§3602(b). "The Apartments" shall refer to the apartments listed
above at p.3.
2. Any Material sent to counsel for the United States shall
be addressed as follows: Chief, Housing & Civil Enforcement
Section, Civil Rights Division, U.S. Department of Justice,
P.O.Box 65998, Washington, D.C. 20035-5998.