In 2020, the DC Office of the Attorney General (“OAG”) filed a housing discrimination lawsuit against DARO Management Services, LLC, a real estate management company that operates, maintains, and leases about 1,200 apartments across 15 buildings in NW DC; DARO Realty, LLC, which owns the majority of these apartment buildings; and Infinity Real Estate, LLC, the company overseeing investment and practices of both DARO entities. DC also named several of the entities’ executives as defendants. The lawsuit alleged that the defendants violated DC civil rights and consumer protection laws by treating people who receive housing subsidies inequitably and making it difficult or impossible for them to rent apartments in the 15 buildings—located in Wards 1, 2, and 3.

On October 20, 2022, Attorney General Karl Racine announced a settlement. Under the terms of a settlement agreement, the three real estate companies and its principals will be required to pay $10,000,000 in civil penalties for illegal housing discrimination, permanently stop managing residential property in DC and forfeit a professional license (surrender DC real estate licenses and not seek reinstatement or seek to apply for a new license for 15 years).

According to OAG, approximately 11,500 low-income DC households depend on the federally-funded Housing Choice Voucher Program (“Section 8” vouchers) to rent housing in the private market. Sixty percent of DC households that use federal rental assistance are seniors, families with children, or people with disabilities. Ninety-five percent of DC voucher-holders are Black, and 79 percent of households using vouchers are headed by women. In total, more than 50,000 DC residents rely on some form of subsidy for housing stability, according to OAG.

Last Updated on October 22, 2022 by Ramin Seddiq