New York Attorney General Letitia James has halted discriminatory housing practices by Shamco Management Corp. (Shamco), a property owner and management company in New York City. The Office of the Attorney General (OAG) found that Shamco, which manages approximately 1,300 units, including 1,161 rent-stabilized units across 31 buildings primarily located in Harlem and Central Brooklyn, violated state human rights laws by refusing to rent to individuals with housing vouchers.
The investigation revealed that Shamco engaged in several discriminatory practices such as ignoring potential tenants who disclosed their voucher status, inflating rents above voucher thresholds, falsely claiming apartments were rented when they were available, and other actions against voucher holders. As a result of OAG’s action, Shamco will pay $400,000 to those unjustly denied housing due to their voucher status. Additionally, Shamco is required to rent at least 65 units to tenants with housing subsidies and provide them with at least one renewal lease.
“Housing is a human right,” said Attorney General James. “Shamco’s discriminatory practices against voucher holders denied hardworking families the opportunity to secure stable housing and further exacerbated our housing crisis.”
Government-issued rental vouchers like Section 8 Housing Choice Voucher Program and CityFHEPS provide assistance for low-income households to rent safe housing in the private market. Refusing tenants based on their source of income is illegal under New York state and city human rights laws.
The OAG's investigation into Shamco began in late 2021. Findings included multiple instances where voucher holders were refused showings or falsely told an apartment was unavailable. Employees were instructed by supervisors to lie about apartment availability if they discovered prospective tenants had vouchers.
One list reviewed by OAG showed that out of 42 prospective tenants with Section 8 vouchers, 39 were marked as “not qualified.” Examples include a cancer patient whose communication ceased after disclosing his CityFHEPS voucher status and another individual from a shelter who was ignored after being promised follow-up information.
As part of the settlement agreement, if Shamco fails to meet its obligation without valid excuse within one year, it will incur penalties paid into the OAG’s affordable housing fund with HPD. Furthermore, Shamco must implement nondiscrimination policies and ensure all employees undergo fair housing training approved by OAG.
Attorney General James has taken multiple actions against similar discriminatory practices previously this year including agreements with real estate brokers Pasquale Marciano and others for denying low-income renters opportunities.
Congressman Adriano Espaillat praised Attorney General James’ efforts: “No person in our country should be denied a place to call home because of their source of income.”
State Senator Kevin Parker emphasized: “Discrimination against low-income renters is illegal and fundamentally unjust.”
Other officials echoed these sentiments commending Attorney General James' decisive action ensuring equitable access for all New Yorkers regardless of income source.
This matter was handled by Assistant Attorney General Kyle Rapiñan among others under the supervision of Bureau Chief Sandra Park along with Housing Protection Unit Chief Brent Meltzer within the Division for Social Justice led by Chief Deputy Attorney General Meghan Faux overseen by First Deputy Attorney General Jennifer Levy.