“Unfortunately, no.” “No, I don’t think so.” “No, not really.” A simple “no.”
These were the replies prospective housing applicants received when they called real estate agents with a Westchester company and asked if they could use Section 8 housing vouchers to cover the rent for apartments marketed by the firm, according to a 38-page court settlement with the state attorney general's office last month.
But state and county discrimination laws make it illegal to deny housing based on an applicant's source of lawful income, and the callers were actually trained testers probing for compliance with those laws, the settlement reveals.
New York Attorney General Letitia James announced in a statement this week that Pasquale A. Marciano, doing business as New Rochelle-based Century 21 Marciano and other entities, had agreed to stop the unlawful practices, pay $40,000 to the state and submit to anti-discrimination training for all client-facing staff. Marciano also pledged to set aside nine apartments for tenants using government subsidies, for a term of five years.
The agreement was the latest in a string of housing discrimination settlements recently announced by James and came as Gov. Kathy Hochul and other political leaders push to expand affordable housing access, both in resistant suburbs and closed-off urban areas. The case also highlights how low-income renters advantaged with government subsidies face persistent roadblocks, including from noncompliant landlords and other real estate interests.
“Discrimination against low-income New Yorkers denied opportunities to those most in need of housing assistance,” James said. “This agreement will open up housing specifically for low-income New Yorkers and send a clear message that this kind of discrimination is unacceptable in our communities.”
A phone call and email to Marciano, listed in court papers as owner of the Century 21 franchise and affiliated with several other real estate entities, went unanswered. The court agreement states that he and his companies — with 76 housing units in a portfolio spanning 13 multifamily residential properties, and 25 real estate agents representing Westchester landlords — “admit the … findings” as detailed in the settlement.
Josh Murillo, deputy director of the nonprofit Housing Rights Initiative, whose investigations spurred the attorney general’s action, said the case would open up apartments for “countless families and increase housing opportunities for everyday New Yorkers.”
In many communities, source-of-income discrimination reaches beyond just those with limited resources. In New York City, more than eight in 10 voucher holders are Black or Hispanic and are “likely to have a disability,” according to a 2022 CUNY report. Nationwide, 48% of voucher holders were Black, 32% were white, 17% were Hispanic and 2% were Asian, according to federal data.
HRI conducted the testing over several days in December 2020. The testers recorded their inquiries with Century 21 Marciano sales agents, for units with monthly rents ranging from $1,550 to $2,000.
In each of four instances, according to the settlement, the agents replied that Section 8 vouchers were nonstarters for the sought-after apartments.
One of the refusals: “No, I don’t think so. … It’s up to the landlord, he kind of prefers the tenant without the Section 8 voucher. … There were two other people with a voucher, and he said ‘No.'” The other replies expressed similar denials.
The agents also told callers they would have to pay a $450 application fee and a $150 credit and background check, noting the latter charge was “usually non-refundable,” according to court papers. State law caps those fees at $20 “or the cost of the background screening report, whichever is less.”
In October, in another settlement with James' office over source-of-income claims, Westchester County-based real estate and property management firm Platzner International Group agreed to pay $105,000 in damages, waive broker fees for prospective tenants using housing subsidies for the next five years, and set aside 20 units for low-income tenants.
The settlement, called an "assurance of discontinuance," allows the attorney general to resume the litigation if terms of the agreement are broken.
