HUD charges Nevada homebuilder with violation of Fair Housing Act

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HUD charges Nevada homebuilder with violation of Fair Housing Act

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HUD NEWS

Department of Housing and Urban Development – Alphonso ,

Secretary

Office of Public Affairs, Washington, DC 20410

HUD No. 05-016

Jereon Brown

(202) 708-0685 FOR RELEASE

Wednesday

Feb. 9, 2004

http://www.fairhousing.com/index.cfm?method=page.display & pageid=3626

HUD CHARGES NEVADA HOMEBUILDER WITH VIOLATION OF FAIR HOUSING ACT

BUILDER CANCELS CONTRACT DUE TO MOLD CONCERNS

WASHINGTON, D.C. – The U.S. Department of Housing and Urban

Development charged Perma-Bilt Corporation, a Nevada-based

corporation, and its Vice President of Sales and Marketing, Ruth

Ochoa with violating the Fair Housing Act by discriminating against

Terrell and Candra and their children because of the

children's disabilities.

HUD's investigation revealed that the family children suffer

from severe respiratory ailments including asthma and are

hypersensitive to mold. The discussed their concerns about

their children and mold with a Perma-Bilt sales agent before

entering into a purchase agreement for a five-bedroom home to be

built in Las Vegas.

One month after entering into the agreement, the began

visiting their new home site. During one of the visits, Mrs.

noticed what appeared to be mold growing on two studs in the middle

of the property.

Following her visit, Mrs. informed Perma-Bilt of the apparent

mold at the home, explained her children's health condition and past

exposure to mold, and requested that the studs be tested for mold.

Mrs. was told by a Perma-Bilt representative that the home was

going to be completed " as is " without being tested for mold. This

same representative told Mrs. that the home could be tested

for mold only after it was completed and offered to refund the money

if they wanted to cancel the contract.

Perma-Bilt then cancelled the contract stating in writing, " Perma-

Bilt did not contemplate being required to build a completely mold-

free or sterile home to accommodate the hypersensitivity of the

children. "

tried to negotiate a reasonable resolution with Perma-Bilt to

have the mold tested to determine if it was the type of mold that

could pose a risk to the children. The family informed Perma-Bilt

that they were willing to pay half the estimated $1,000 cost to test

the studs and treat and seal the mold-affected areas if necessary.

Perma-Bilt refused to engage in any further dialogue and stood by

the contract cancellation.

" It is difficult to imagine that out of concern for the children,

and maintaining quality building standards, Perma-Bilt would not

conduct the mold test, " said Carolyn Peoples, HUD's Assistant

Secretary for Fair Housing and Equal Opportunity. " By refusing to

grant the family reasonable accommodation request that the

suspected mold be tested and treated, if harmful, and by refusing to

discuss any other reasonable accommodations, Perma-Bilt

discriminated against the family and their children. "

Housing discrimination charges heard before an ALJ carry a

maximum civil penalty of $11,000 for a first offense in addition to

actual damages for the complainant, injunctive or other equitable

relief, and attorney fees. Sanctions can be more severe if the

respondent has previously violated the Fair Housing Act. If

either party elects to go to federal district court, either party

may request a jury trial and punitive damages.

In either forum, a United States Department of Housing and Urban

Development attorney or a Department of Justice attorney brings the

case on behalf of the complainant. Each party has the right to be

represented by his or her own attorney.

HUD is the nation's housing agency committed to increasing

homeownership; creating affordable housing opportunities for low-

income Americans; and supporting the homeless, elderly, people with

disabilities and people living with AIDS. The Department also

promotes economic and community development as well as enforces the

nation's fair housing laws. More information about HUD and its

programs is available on the Internet at www.hud.gov and

espanol.hud.gov.

People who believe they are the victims of housing discrimination

should contact HUD at 1-800-669-9777 or DOJ at 1-800-896-7743 or 202-

514-4713. Additional information is available at www.hud.gov and

www.usdoj.gov.

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