HUD Reaches Agreement in California Fair Housing Act Case – NMP Skip to main content

HUD Reaches Agreement in California Fair Housing Act Case

Mar 28, 2016
The U.S. Department of Housing & Urban Development (HUD) has announced an agreement with a Cupertino, Calif.-based property management company

The U.S. Department of Housing & Urban Development (HUD) has announced an agreement with a Cupertino, Calif.-based property management company, its agents and the owners of a Santa Clara apartment complex to resolve allegations they discriminated against applicants based upon their national origin. HUD alleged that the Salwasser Group Inc. (doing business as Income Property Specialists) and property owners Gary and Mary Drieger discriminated against prospective renters by refusing to accept Mexican forms of identification, while encouraging a Canadian passport holder to apply for an apartment.

The Fair Housing Act prohibits discrimination in rental, sales or home lending transactions based on a person’s national origin. This includes discrimination based on a person’s ancestry or country of birth outside the United States.

“Where a person is from should not influence the housing options that are available to them,” said Gustavo Velasquez, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “The Fair Housing Act requires property owners to treat everyone equally and HUD will continue to take action when they fail to meet that obligation.”

The case came to HUD’s attention when Project Sentinel, a fair housing organization based in Santa Clara, filed a complaint after performing fair housing testing that allegedly showed that the owners, through the management company,  discriminated on the basis of national origin by refusing to rent, and imposing different terms and conditions regarding government-issued forms of identification.

According to Project Sentinel’s complaint, the respondents allegedly informed testers who offered a Mexican passport and a Mexican consular identification that such identification would not be accepted, but encouraged testers using a Canadian passport to apply.

Under the Conciliation Agreement, the owners and management company agreed to pay Project Sentinel a monetary settlement; obtain fair housing training on how not to discriminate; and implement a HUD-approved non-discrimination policy. The owners and manager also agreed to implement a HUD-approved procedure for accepting government-issued forms of identification and post a HUD-approved fair housing poster in the public area of its rental property. 

About the author
Published
Mar 28, 2016
States Tighten Mortgage Rules For Home Equity Investments

Massachusetts, Maine, and Illinois are expanding oversight of home equity financing

West Capital LO Challenges Contractor Status, Required Fees

A former originator alleges unpaid overtime, recurring tech charges, and company restrictions that he says undermine his independent-contractor status

CFPB Closes 40% Of Investigations, Keeps Mortgage Enforcement In Focus

The federal watchdog closed thousands of supervisory and investigative matters as it narrowed oversight

Midterms Loom With Mortgage Policy Changes Already In Motion

As voters head to the polls Tuesday, Washington is weighing changes to refinancing costs, loan pricing, and lending regulations

UAD 3.6 Deadline Is Monday. Are Brokers Ready?

Wholesale lenders have adopted different rules for appraisal transfers, loan product changes, and reporting formats, adding complications for brokers and appraisers ahead of the Nov. 2 mandate

Friday Harbor Expands AI Appraisal Reviews As UAD 3.6 Deadline Nears

The new capability adds more than 350 automated checks as lenders prepare for the November 2 mandate

Oct 27, 2026