Litigation
This summer, U.S. state and local governments have been active on issues affecting the multifamily housing sector: California sued non-compliant cities, Michigan updated building codes, Arizona cracked down on landlord air conditioning issues, and Seattle streamlined environmental reviews and banned "junk fees."
On July 15, the U.S. District Court for the District of Columbia ruled to allow the utility billing lawsuit against Bozzuto Management Co. to proceed as a class action. Former tenant Laura Hettinger alleges that the company failed to disclose administrative and variable utility fees before leasing and overcharged for water in violation of D.C. law. The court certified two damages classes but denied the request for prospective injunctive relief.
Greystar, as the largest apartment management company in the U.S., has been hit with 114 fair housing violation complaints by the Housing Rights Initiative in seven jurisdictions, alleging it refuses to accept Section 8 tenants.
A Philadelphia tenant has filed a class action lawsuit against RealPage and large apartment management company Willow Bridge, alleging the use of algorithmic rent-setting software that violates the city's anti-price-fixing regulations. The lawsuit was filed on July 6 in the Philadelphia County Court of Common Pleas, coinciding with Willow Bridge's settlement of another related federal antitrust case on the same day.
The U.S. housing industry has seen frequent legal disputes this summer: algorithmic pricing lawsuits continue to escalate, with multiple apartment owners and management companies reaching settlements; multifamily housing companies have faced lawsuits over poor maintenance, negligence, and misleading investors; housing agencies and their staff have also been drawn into litigation. This article summarizes notable major case developments worth attention recently.