City settles with Parkchester housing management for $1M in discrimination suit

The city has reached a $1 million settlement with Parkchester Preservation Management, after accusing the company of discrimination against renters who use subsidy vouchers.

Mayor Eric Adams and the New York City Commission on Human Rights (CCHR) announced the settlement — the largest of its kind in city history — on Aug. 22.

The company runs a massive housing complex of over 6,000 units in a planned community originally established by Metropolitan Life insurance company. Parkchester management markets the area as the "ultimate walkable neighborhood" with a "relaxed atmosphere, lush parkland and diverse culture."

The Bronx Times left a message for the company but did not receive a response.

According to the city, Parkchester management was accused of setting minimum income requirements for potential renters but not counting the vouchers towards income — making it nearly impossible for applicants with a voucher to qualify.

Parkchester management has denied the allegations and attempted twice to have the case dismissed, according to the nonprofit Fair Housing Justice Center (FHJC), which has been investigating the income-discrimination claims at the complex since 2016.

In the end, the company agreed to pay damages and lease apartments to those who filed complaints with the city, and to set aside at least 850 units for renters with vouchers. Currently, there are only 257 applicants using rental assistance who have moved in since Aug. 1, 2022, according to the settlement.

Management also agreed to train its staff on fair housing law and to change its messaging and policies around income requirements. The settlement says that the Parkchester rental website and third-party sites must state that households using subsidies to pay all or part of their rent directly to the company will not be subject to credit evaluations or minimum income requirements.

Council Member and Majority Leader Amanda Farías, who represents Parkchester and is native to the area, said the settlement is a victory for her current and future neighbors.

"We cannot expect to solve the housing and affordability crisis in New York City if one of our key programs is being undermined by discriminatory practices in our own backyards," she said in a statement.

"This settlement eliminates an unjustified minimum income requirement that has prevented voucher holders from accessing crucial affordable housing opportunities in the Bronx for years," said Vivake Prasad, attorney for FHJC in a statement. "This is an important milestone in the fight against source of income discrimination and housing insecurity. FHJC will assist with ensuring compliance with the agreement.

More tenant protections

Source of income discrimination has been illegal in New York City since 2008 — yet the city says it remains common.

The Parkchester settlement comes amid heightened efforts by the city to better protect tenants' rights and identify cases of discrimination. In May, Adams announced the creation of the city's first-ever Tenant Protection Cabinet. He also launched a forthcoming program by the Housing Preservation and Development to identify more cases of source of income discrimination.

Since 2017, the city has garnered $2.26 million in penalties for source of income discrimination, according to information from CCHR.

"While we are tackling a generational housing shortage and affordability crisis, our administration is also going after the bad actors who prey on New Yorkers in the housing market," said Adams.

He called the settlement "a win for the everyday New Yorkers in search of safe, stable housing, and a warning sign for any predatory group trying to harm tenants."

Significant change is in store for the community, as the Bronx Metro-North rezoning and redevelopment plan — recently approved by City Council — will bring thousands of new housing units to the area over the coming years.

Farías negotiated $500,000 for capital improvements to existing Parkchester housing, plus other infrastructure investments, to strengthen the community for current and future generations. The protections provided in the settlement are one step towards that bigger picture, she said.

"I will continue to fight for my neighbors and those looking to move into our community," said Farías.

New Yorkers who have experienced housing discrimination can contact the City Commission on Human Rights at (212) 416-0197 or by file a report online.

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Reach Emily Swanson at [email protected] or (646) 717-0015. For more coverage, follow us on Twitter, Facebook and Instagram @bronxtimes