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For Immediate Release:  
For Further Information:
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December 13, 2006  
Lee Moore
609-292-4791

Office of The Attorney General
- Stuart Rabner, Attorney General
Division on Civil Rights
- Frank Vespa-Papaleo, Director

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Housing Discrimination Complaints Filed Against Landlords and Real Estate Agency Posting Vacancies on the Internet
Separate Web-Related Discrimination Case Resolved by Settlement
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TRENTON -- Attorney General Stuart Rabner announced today that the state Division on Civil Rights has filed housing discrimination complaints against three different New Jersey landlords and one real estate agency for allegedly placing discriminatory “housing available” ads on Internet websites frequented by potential renters.

In addition to the four new complaints, the Attorney General announced that the Division has reached a settlement with a landlord previously charged with housing discrimination for placing an Internet ad that discouraged tenants with children.

In another case, Rabner said the state has issued a Finding of Probable Cause against a landlord accused of placing Internet housing ads intended to discourage tenants seeking to pay with federal rental assistance, or Section 8 housing funds.

“Although there is certainly much to recommend the Internet as a source of information, the World Wide Web is also emerging as a new frontier for discrimination, and we in New Jersey law enforcement are responding accordingly,” Rabner said. “There is no place in our state for property owners, landlords and rental agents who would deny housing on the basis of prejudice, and we are committed to investigating and prosecuting such conduct -- wherever we find it.”

Recently charged with violating the New Jersey Law Against Discrimination (LAD) after separate investigations prompted by allegedly discriminatory Internet rental advertising are property owners Mark Cornacchia of Hackensack, Stephen F. Mandato of Malvern, Pa., landlord Robert Pratola of West Orange, and the Metropolitan Gallery of Homes in Jersey City.

In the case of Cornacchia, the state’s complaint charges that he placed an on-line ad for a rental property he owns in the 800 block of Main Street, Paterson, saying “no Section 8" – a reference to federal Section 8 housing assistance. The advertisement was published at www.newjersey.craigslist.org . The state complaint charges Cornacchia with not only placing discriminatory advertising, but with subsequently telling two undercover state testers – testers who represented themselves as Section 8 rental assistance clients – that he would not rent to them.

In the case of Mandato, the owner of a rental property on Bond Street in Asbury Park, he is charged with placing an on-line advertisement that also said, “no Section 8,” and with telling two state testers who followed up that he would not deal with tenants using federal rental assistance. . This advertisement was also published at www.newjersey.craigslist.org .

Pratola is also accused of placing a “No Section 8" reference in an Internet housing ad found on-line by state investigators. The on-line ad encouraged non-Section-8 housing seekers to call a telephone number registered to Pratola and to ask for either “Dana or Rob” regarding a three-bedroom apartment available in West Orange. Subsequently, two state testers who called the number spoke with a woman who identified herself as “Dana” and confirmed that she would not rent to tenants who intended to pay using Section 8 rental aide, according to the complaint. The woman identified as “Dana,” whose last name has not yet been confirmed, is also charged in the state complaint. The advertisement at issue was published at http://apt.8list.com .

Metropolitan Gallery of Homes, a Jersey City real estate agency, is accused of placing an on-line advertisement for a rental property on Undercliff Avenue in Edgewater, Bergen County, that said “no children” in violation of state law that prohibits housing discrimination on the basis of “familial status.” The advertisement was published at www.newjersey.craigslist.org .

Each of the allegedly discriminatory ads were found on-line by state investigators in October and November 2006, said Division on Civil Rights Director J. Frank Vespa Papaleo.

“All otherwise eligible persons have the same right, under our law, to access the same clean, safe and affordable housing opportunities,“ said Vespa-Papaleo. “Technology may be evolving rapidly, and the principal means of advertising available housing may be changing, but the legal obligation of property owners, landlords and real estate professionals remains the same – treat people equally.”

The state recently settled a similar, Internet-related housing case in which a Somerset county landlord had refused would-be tenants with children. Under terms of an October 31, 2006 settlement agreement with the state, landlords Gerald and Nancy Rubin of North Plainfield acknowledge that they violated the LAD by placing an on-line apartment ad saying they would not rent to tenants who had children, and by subsequently turning away state testers who called them, expressed interest in the apartment and claimed to have children. The Rubins own only this single property.

Vespa-Papaleo said that, during a February 2006 investigation, two different state testers responded to the Rubins’ ad and spoke with a woman who identified herself as Nancy Rubin.

Both state testers told the woman they had children, and were allegedly told by Rubin that a rental was not possible. A third state tester made no mention of children while talking with Rubin and was offered the chance to inspect the apartment on Rockview Avenue, according to the state’s original complaint.

In addition to agreeing to comply with the LAD in the future, the Rubins agreed as part of the settlement to modify their rental property as required to make it suitable for children, including installation of child-protective window guards that meet state Department of Community Affairs standards by the end of January 2007.

In another, unrelated Internet housing case announced today, the Division on Civil Rights has issued a Finding of Probable Cause against landlords Francesco and Rosa Grasso of Garfield, Bergen County. According to the state’s complaint, the Grassos allegedly placed an on-line rental ad for a three-bedroom, two-bath apartment on Lincoln Place in Garfield in February 2006. The ad allegedly discouraged Section 8 federal housing assistance clients.

Subsequently, a state tester spoke by phone with a woman who identified herself as “Rosa” and mentioned plans to pay via Section 8 housing assistance. That tester was allegedly told that Section 8 renters were not welcome. Another state tester had a similar experience – she was told there would be no rental of the Garfield dwelling to Section 8 recipients -- while talking to a different contact person listed in the ad. A third state tester spoke with a woman who identified herself as “Rosa,” made no mention of her source of income, and was allegedly invited to inspect an apartment.

A Finding of Probable Cause means the State has finished its investigation, and has determined there is sufficient evidence to support a reasonable suspicion that the actions of the Respondent violated the LAD. The Grasso matter will now be referred for conciliation, a DCR process designed to resolve cases without trial. If conciliation fails, an Administrative Law Judge will conduct a non-jury public trial, or hearing, on the case.

Under the LAD, Respondents found to have committed a violation are subject to a penalty of up to $10,000, provided they have not been convicted of a previous violation within the past five years. Respondents who have violated the LAD within the past five years are subject to a penalty of up to $25,000, while those who have been convicted of two or more violations within the past seven years are subject to a penalty of up to $50,000.

The Division on Civil Rights is responsible for enforcing the LAD. Specifically, the Division investigates allegations of discrimination in employment, housing, places of public accommodation and credit. The Division on Civil Rights has six offices: Atlantic City, Camden, Jersey City, Newark, Trenton and Paterson. Further information is available on the Division Web site www.NJCivilRights.org . To file a formal Complaint, persons may call the Division’s Housing Discrimination Hotline toll-free at 1-866-405-3050.

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