Greater New Orleans Fair Housing Action Center, Inc. v. Hotard

275 F. Supp. 3d 776
CourtDistrict Court, E.D. Louisiana
DecidedAugust 7, 2017
DocketCIVIL ACTION NO. 15-1320
StatusPublished
Cited by5 cases

This text of 275 F. Supp. 3d 776 (Greater New Orleans Fair Housing Action Center, Inc. v. Hotard) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greater New Orleans Fair Housing Action Center, Inc. v. Hotard, 275 F. Supp. 3d 776 (E.D. La. 2017).

Opinion

SECTION “R” (3)

FINDINGS OF FACT AND CONCLUSIONS OF LAW

SARAH S. VANCE, UNITED STATES DISTRICT JUDGE

1. INTRODUCTION

This case arises from allegations of' housing discrimination at an apartment building located at 3839 Ulloa Street, in New Orleans, Louisiana. The building is owned and operated by Defendants Jim Hotard and 3839 Ulloa Street, LLC.1 Plaintiff Greater New Orleans Fair Housing Action Center, Inc., filed this lawsuit on April 23, 2015, asserting a claim under the Fair Housing Act (FHA), 42 U.S.C. § 3601, et seq.2 Plaintiff seeks declaratory [778]*778and injunctive relief, damages, attorneys’ fees, and costs.3

Plaintiffs complaint alleged that defendant Hotard treated potential renters for his .property differently on the basis of their race. More specifically, plaintiff alleges that Hotard refused to respond to email inquiries regarding his property from African-American testers but responded promptly to email inquiries from white testers.4 Further, plaintiff alleges that Ho-tard responded less favorably to phone inquiries from African-American testers than he did to phone inquiries from white testers.5

On July 17, 2017, the Court held a bench trial. The Court has jurisdiction over plaintiffs FHA claim under 28 U.S.C. §§ 1331, 1343(a)(3), and 42 U.S.C. § 3613. After hearing live testimony and reviewing all the evidence, the Court rules as follows.

II. FINDINGS OF FACT AND CONCLUSIONS OF LAW

A. Background

Defendant James Hotard owns and manages property in the greater New Orleans area.6 At all times relevant to this lawsuit, Hotard owned three multifamily properties in the greater New Orleans area, located at 1434 St. Andrew Street, 2217 Lapeyrouse Street, and 3839 Ulloa Street.7 These buildings had 55 available units combined.8 Hotard manages and maintains all of his properties, as well as a 52-unit building on the West Bank that he does not own, Hotard also has a small credit-card-proeessing service business.9

The property at issué is located at 3839 Ulloa' Street, in Mid-City New Orleans, The apartment building has 20 units, and at the time of the events relevant to this lawsuit, 17 of the 20-units were occupied by African-Americans.10 The Ulloa building, like all of Hotard’s buildings, had many Section 8 tenants, as well as other tenants referred from various charities.11

The area where the property is located has undergone demographic changes over the last two decades. According to census data, since the year 2000, the proportion of African Americans to white residents has decreased.12 Further, the specific block where the property is located has seen a significant decrease in African-American residents.13

The Greater New Orleans Fair Housing Action Center (GNOFHAC)-is a private section 501(c)(3) nonprofit organization that works to end housing discrimination and segregation in Louisiana.14 The organi[779]*779zation focuses on four areas: enforcement (ie., bringing claims on behalf of individuals who have experienced housing discrimination), policy advocacy, education and outreach, and homeownership protection.15

One of the ways that GNOFHAC identifies housing discrimination is through testing.16 Testing is an investigative tool commonly used by fair housing organizations to determine if landlords and others offering housing are discriminating or engaging in differential treatment.17 GNOFHAC’s Investigations Coordinator Michelle Morgan testified that GNOFHAC gives paired testers “profiles” that include assigned' information on the tester’s income, education, work history, and other information relevant to housing.18 The testers are equally qualified for the housing, and similar in all relevant characteristics except for the characteristic subject to testing.19 For example, if testing for racial discrimination, the testers’ profiles will match except for race. The testers record their interactions with landlords through audio-recording devices, and also provide written reports of their encounters.20 GNOFHAC provides their testers with a training manual, in-class training exercises, and mock encounters.21 Morgan testified that the testers are not told, in .advance what they are testing for, as to not bias or compromise the test.22 The testers are compensated for their-work.23

B. The Tests, and GNOFHAC’s Response

Morgan testified that in March of 2013, a Cfaigslist advertisement for two available units at Hotard’s Ulloa Street property came to her attention.24 M'organ was riot sure how she came across the ad, and suggested that either a staff member referred it to her, or she came across it during her own search of new advertisements.25 Morgan testified that the ad stuck out to her because it said “no Section 8” on it, and Morgan believed this was coded language suggesting that the units were not available to African * Americans.26 As the advertisement-solicited email responses, Morgan decided to conduct an email test.27

Morgan reached out to Jesse Chanin and Denise Frazier, two previous testers with multiple years of experience conducting tests for GNOFHAC.28 Jesse used the name “Jessy,” and Denise used the name “Trynesse,” which Morgan testified is an identifiably African-American name.29 On March 11, 2013, the testers sent similarly worded emails to Hotard, both indicating an interest in the apartment and requestr [780]*780ing further information to set up a viewing.30 Hotard responded to Jessy with his phone number, but did not respond to Trynesse.31 Based on the lack of response, Morgan decided to set up a second test to be conducted that same day.

This time, instead of using actual testers, Morgan decided to create fake email addresses and email Hotard herself.32 Morgan used the names “Jahmal” and “Mar-zy,” and when asked why she used those names, Morgan asserted that Jahmal is “identifíably African American.”33 As with the first test, the emails sent to Hotard were similarly worded and both sought a time to view the apartment.34 Hotard responded to Marzy and offered to show her the apartment, but Hotard did not respond to Jahmal’s email.35

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Bluebook (online)
275 F. Supp. 3d 776, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greater-new-orleans-fair-housing-action-center-inc-v-hotard-laed-2017.