Attorney General Peter F. Neronha has announced a $213,000 settlement with A.R. Building Company, Inc. (ARBC). The settlement resolves allegations of unfair trade practices targeted at prospective tenants and aims to set a precedent in the Rhode Island housing sector.
The settlement mandates that ARBC refund $98,250 to affected consumers who were charged illegal application fees. Additionally, ARBC will pay $114,750 to the state. As part of the agreement, ARBC will make necessary changes to its practices.
"We will hold accountable any entity that attempts to take advantage of consumers by implementing illegal barriers to finding a home, a practice made all the more egregious by the fact that we are in the midst of a severe housing crisis," said Attorney General Neronha. "With this settlement, not only are we returning nearly $100,000 to Rhode Island consumers, we are barring this company from further engaging in behaviors that we allege are illegal and discriminatory. We must make it easier, not harder, for people to obtain safe, affordable housing, and that’s why my Office will continue to hold accountable bad actors who place profits over people. Let this settlement serve as a warning to those who may still be engaging in illegal housing practices; we won’t stand for it, and we won’t hesitate to take further action."
ARBC allegedly charged application fees, failed to provide opportunities for tenants to submit their own screening documents, and did not share screening results with those who paid for them. The settlement also addresses claims that ARBC imposed an unfair application process on people with disabilities, violating both state and federal fair housing laws.
Consumers who paid fees to ARBC between January 1, 2024, and January 30, 2025, should reach out to the property managers where they applied. Any remaining undistributed funds will be donated to the Special Olympics of Rhode Island.
This action stems from the authority restored to the Attorney General’s Office in 2021 to enforce the Deceptive Trade Practices Act (DTPA). Previously, the Office has pursued various legal actions under this act, including a lawsuit against a solar company for dishonesty and a case against a contractor for unlawful behavior. More recently, in March 2025, a lawsuit was filed against Michael Moccia and Palisade Legal Group for charging illegal fees detrimental to consumers' credit scores.
The Office has also pursued other high-profile cases, including an action against real estate broker Kyle Seyboth in which homeowners were deceived into selling their homes at below-market value, believing they were refinancing. In another case, Pioneer Investments, LLC faced legal action for failing to meet state rental and consumer protection laws, impacting tenant safety and fair market practices.
The matter was handled by Special Assistant Attorney General Jordan Mickman, Chief of the Civil Rights Unit, along with Special Assistant Attorneys General Leonard Giarrano and Kyla Duffy.