Shamco Must Pay $400,000 to Low-Income Renters That Were Illegally Denied Rental Housing Opportunities by the Company
New York Attorney General Letitia James today stopped New York City property owner and management company Shamco Management Corp. (Shamco) from illegally denying housing opportunities to low-income renters in New York City. The Office of the Attorney General (OAG) found that Shamco, which owns or manages approximately 1,300 units, including 1,161 rent stabilized units, in 31 buildings primarily located in Harlem and Central Brooklyn, violated New York’s human rights laws by refusing to rent to New Yorkers with housing vouchers, intentionally ignoring potential tenants who disclosed their voucher status, artificially inflating rents above voucher thresholds, telling voucher holders an apartment was rented when it was still available, and other discriminatory practices.
As a result of OAG’s action, Shamco will pay $400,000 to potential renters who were unjustly denied housing because of their voucher status. Shamco will also rent at least 65 units to tenants with housing subsidies and provide them with at least one renewal lease.
“Housing is a human right, and everyone deserves fair access to housing, regardless of their source of income,” 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. My office will always stand up to ensure all New Yorkers are afforded equitable opportunities to find safe and affordable housing.”
Government-issued rental vouchers, such as the Section 8 Housing Choice voucher program and CityFHEPS, provide housing assistance to the lowest-income households to rent decent, safe housing in the private market. These programs also aid senior citizens and disabled persons on fixed incomes, displaced families, and homeless individuals with disabilities.
Refusing to rent to prospective tenants because of their source of income wrongfully denies New Yorkers their right to equitable housing access and is an illegal and discriminatory act under New York state and New York City human rights laws. Owners, landlords, property managers, rental agents, salespersons, and brokers cannot refuse to accept potential tenants solely because they receive housing subsidies.
The OAG opened an investigation into Shamco in late 2021. Throughout the investigation, OAG found multiple instances of discriminatory practices, including refusing to show voucher holders rental units, telling a voucher holder the apartment was rented when it was in fact available, ignoring potential tenants once they disclosed their voucher status, and marking potential applicants with vouchers as “not qualified” regardless of their credit or other qualifying factors. Shamco also told its brokers contradictory policies of how they should interact and show apartments to voucher holders, leading to biased and unfavorable treatment.
At least one Shamco employee was told by their supervisors to lie to prospective tenants if they discovered they had a voucher during an apartment tour and make up reasons to delay the rental process. If the prospective tenant followed up, the Shamco employee was directed to tell them that the apartment had been rented and was no longer available, even when that was not true.
A list of potential renters reviewed by OAG found that out of 42 prospective tenants, 39 applicants, all with Section 8 vouchers, were marked as “not qualified.” Shamco refused to rent to these tenants simply because they were voucher holders. One prospective tenant with cancer had a scheduled apartment tour with Shamco, but when he disclosed that he had a CityFHEPS voucher, the Shamco employee he had been working with stopped responding. Another voucher holder residing in a shelter was promised that Shamco would follow up with him about a unit at the end of the month, but Shamco ghosted him because of his voucher status.
Shamco will pay $400,000 in restitution to be distributed to people who were illegally denied housing. Within one year, Shamco will rent 65 units from the company’s portfolio to voucher holders. If Shamco fails to meet this obligation without a valid excuse, the company will pay a penalty of $1,000 per month per unit, which will go to the OAG’s affordable housing fund with HPD. Shamco will also accept voucher holders as tenants beyond its obligation in the settlement and is forbidden from illegally steering away or otherwise mistreating voucher holders. The OAG will ensure Shamco’s compliance with the settlement for a period of three years.
Shamco will also implement new nondiscrimination policies and all employees and supervisors will undergo fair housing training with a trainer approved by OAG. Additionally, Shamco will post notices at all of its properties in New York City and on all promotional materials for listings stating that the company is an Equal Housing Opportunity Provider and accepts housing vouchers.
This is the latest action taken by Attorney General James to fight housing discrimination and protect low-income tenants. In February, Attorney General James announced an agreement with real estate broker Pasquale Marciano and his companies to stop illegal policies that denied housing opportunities to low-income renters. In October 2023, Attorney General James took action against another Westchester property owner and manager for discriminating against low-income renters. In 2022, Attorney General James also took action to stop “tenant blacklisting” and partnered with HRI to stop the real estate company Compass from denying housing to low-income New Yorkers. In July 2022, Attorney General James recovered nearly $300,000 of illegally withheld security deposits for Brooklyn tenants. In April 2022, Attorney General James sued Brooklyn-based eviction lawyers for engaging in deceptive rent collection practices and initiating frivolous lawsuits against New York tenants.
It is illegal in New York State for any owner, managing agent, broker, or any other representative to refuse to rent, sell, or lease housing to any person based on their source of income. New Yorkers who suspect they are victims of source of income discrimination are encouraged to file a complaint.
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