One generally does not think of municipalities, who are often sued under the Federal Fair Housing Act (FHA), as being plaintiffs in actions under that statute. Similarly, as the FHA does not prohibit discrimination on the basis of sexual orientation, one does not think of transgender persons and same-sex couples successfully bringing actions under that law. However, in two recent decisions, courts have held that municipalities, transgender persons and same-sex couples can bring viable claims under the FHA.
Municipalities
In Bank of America v. City of Miami, Florida, 2017 U.S. LEXIS 2801 (2017), the city of Miami brought lawsuits under the FHA against two banks. The city argued that the banks discriminatorily imposed more onerous and “predatory” conditions on loans made to minority borrowers than to similarly situated non-minority borrowers Due to these practices, the city argued, the default and foreclosure rates among minority borrowers were higher than among otherwise similar white borrowers and that the practices resulted in lowered property values, diminished property-tax revenue, and increased demand for municipal services need “to remedy blight and unsafe and dangerous conditions” generated by the foreclosures. The city’s complaint also presented statistical analyses showing that the city incurred financial losses from the banks’ practices.
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