The owner of sober-living homes, who allegedly harassed tenants for sexual favors, has one week to tell a federal judge if he wishes to pursue a limited trial on damages or accept a $2 million reduction of the nearly $4 million award against him, a federal judge ruled Thursday.

Chief U.S. District Magistrate Judge Donald L. Cabell of the District of Massachusetts partly sided with the defendant landlord, Peter McCarthy, who argued that the total $3.8 million judgment in a fair housing case against him was excessive. The federal government had filed a civil suit against McCarthy, accusing the owner of Steps to Solutions of offering to reduce or waive tenants' monthly rent in exchange for sexual favors. In May, a jury returned a verdict in favor of seven tenants, who were awarded various portions of the $1 million compensatory damages and $2.7 million in punitive damages, the order said.