Washington D.C. Attorney General Karl Racine announced the $10 million settlement with three real estate firms that operated developments in some of the most affluent communities in our nation’s capital. The settlement will be the largest civil penalty in a US housing discrimination case.

The three real estate firms involved in the settlement include DARO Management Services, DARO Realty, and Infinity Real Estate. According to the lawsuit, the three firms intentionally kept individuals with Section 8 vouchers from renting out their units by making it difficult for them to do so. Together, the three rental groups owned 15 buildings throughout affluent communities in Washington D.C.

Section 8 housing is a federal program that was authorized under the Housing Act of 1937. Under this program, qualifying individuals, including individuals with disabilities and those who come from low-income backgrounds, can qualify for housing vouchers to help with monthly rental payments.

According to the latest data presented by the Office of the Attorney General, 60% of recipients of Section 8 vouchers include seniors, families with children, or individuals with disabilities. 95% of recipients are Black, while 32% are single mothers.

While it's illegal to discriminate against an individual and their housing needs, in 16 states including Washington D.C., it is illegal for landlords to discriminate against individuals who want to pay with section 8 vouchers.

According to the lawsuit against the three firms, that is exactly what DARO management and its associate companies did. The companies went as far as advertising their rental units online with postings that detail section 8 vouchers were not accepted.

In a statement announcing the settlement, the OAG details that “DARO entities, Infinity, and Barry allegedly charged Section 8 voucher recipients added fees, targeted those tenants for eviction, and posted discriminatory housing advertisements. They engaged in this conduct despite full awareness of their legal obligations to follow the District’s non-discrimination and consumer protection laws.”

After the lawsuit, the OAG conducted an investigation that unveiled emails between DARO executives discussing the standards they wanted to see for their rental units. In one email, DARO management president Carissa Barry details “Off the record, I am doing everything I can to reduce if not eliminate the section 8 program from our communities.” Barry adds, “We have tightened our screening criteria as much as humanly possible.”

Along with the multi-million dollar penalty, DARO has agreed to dissolve its property management firm and will need to hand off its properties to be managed by a third party. Barry will also relinquish her D.C. real estate license for the next 15 years.

After announcing the settlement, Racine shared, “This case should send a strong message that if you break the law and discriminate against renters who use housing subsidies, you will face serious consequences.”

D.C. council member Elissa Silverman also welcomed the settlement, sharing, “This is just huge.” She added, “It’s also an effective deterrent to other housing providers … if you have a voucher, you have every right to live in a home in this city, and you cannot be discriminated against.”