Parkchester landlord hit with record-breaking $1M fine for discrimination

A prominent Parkchester landlord was at the receiving end of a historic civil rights settlement regarding housing discrimination.

New York City fined Parkchester Preservation Management $1 million in civil penalties as part of a settlement secured by the city’s Commission on Human Rights, 6sqft reported. The settlement marks the largest fine the CCHR has secured from a landlord.

The settlement over the alleged discrimination in the Bronx isn’t just historic due to the monetary policy, though. CCHR also secured 850 apartments to be set aside by Parkchester for those with housing vouchers; that’s also the most apartments the agency has secured in a settlement.

The city alleged the landlord excluded voucher holders from the rental community by mandating minimum income requirements and non-refundable deposits. The landlord allegedly wouldn’t recognize the full voucher amount in an applicant’s income, essentially freezing voucher holders out of apartments.

The CCHR determined the landlord’s actions to be discriminatory towards voucher holders, who would end up occupying only a small portion of the 6,300-unit complex.

In a statement, Mayor Eric Adams called the settlement “a win for everyday New Yorkers,” while also saying it was a “warning sign for any predatory group trying to harm tenants.” The landlord does not appear to have publicly commented on the settlement.

Income-based housing discrimination has been illegal for years in New York City, but remains one of the more rampant forms of discrimination against prospective renters. Despite the threat of litigation, landlords remain wary of the bureaucratic process that comes with renting to voucher holders, such as those with Section 8 vouchers, and of the costs associated with it.

The founder of the nonprofit Housing Rights Initiative, Aaron Carr, told The Real Deal in February that explicit discrimination in New York City has plunged as newsworthy settlements have struck some fear into landlords leaning towards rejecting voucher holders. 

— Holden Walter-Warner

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