Real Estate Brokerage to Pay $40,000, Adopt Fair Housing Policies, and Help Place Individuals with Rental Subsidies into Residential Housing  

Follows Complaint by a Non-Profit Housing Organization Alleging Source of Income Discrimination After Conducting Fair Housing Tests 

Builds on Success: Earlier This Year, a State Appellate Division Court Upheld the State’s Source of Income Protections for the First Time 

Serves as a Reminder That Discrimination Against Tenants Based on Lawful Source of Income Is Illegal in New York State 

The New York State Division of Human Rights today announced a $40,000 settlement and an agreement to implement fair housing policies after the filing of a complaint alleging source of income discrimination. In this case, a non-profit fair housing organization alleged that a Brooklyn-based brokerage firm and several affiliated real estate agents unlawfully refused to engage with potential tenants who indicated they would pay their rent with a housing voucher rather than income from traditional employment. This case builds on the Division’s success in protecting New Yorkers from source of income discrimination. Earlier this year, the Division won a case in a State Appellate Division Court, which upheld the Human Rights Law’s source of income protections for the first time.    

“Every New Yorker deserves a fair chance to find housing without facing discrimination because of how they pay their rent,” New York State Division of Human Rights Commissioner Denise M. Miranda, Esq. said. “We will not tolerate landlords, brokers, or others who try to deny people housing because they cover rent with a voucher or another source of lawful income. I am proud of the work that the Division’s Housing Investigations Unit and Prosecutions Unit do to ensure no New Yorker is discriminated against while looking for their next home or trying to stay in the home they love—and I am equally proud of our Appeals Unit and Litigation Unit for defending these important protections in court.”  

Under the New York State Human Rights Law, it is illegal for housing providers and real estate agents to discriminate against tenants or prospective tenants based on their lawful source of income. Discrimination based on lawful source of income happens when a housing provider refuses to rent a home to someone because the applicant or renter intends to pay rent using income from sources other than traditional employment. Lawful sources of income include housing vouchers, social security payments, veterans' benefits, child support, public assistance programs, foster care subsidies, and more. The state Division of Human Rights is committed to holding violators of the law accountable. 

About the Case 

This case originates from a complaint filed by the Fair Housing Justice Center, Inc. (FHJC), a non-profit fair housing organization. The complaint was filed against Urban Pads LLC and several licensed agents affiliated with the firm. 

FHJC filed the complaint after conducting tests where individuals posed as renters—some with employment-based income and some with income from housing vouchers. FHJC alleged disparities in the way Urban Pads LLC treated the testers who presented as having employment-based income versus the testers who said they had vouchers. 

Voucher holders encounter such conduct frequently. Often, agents will stop responding to a person once they indicate that they will cover rent using a housing voucher—an experience commonly referred to as “ghosting.” In other circumstances, listings may explicitly state that vouchers are not accepted. When a housing provider ignores someone because of their lawful source of income or tells them that their housing voucher is not accepted, they may be violating the New York State Human Rights Law.  

After FHJC concluded their testing, they submitted a formal complaint to the state Division of Human Rights. In the settlement agreement announced today between the parties and the Division, Urban Pads LLC agreed to pay $40,000 to FHJC and implement fair housing policies aimed at preventing discriminatory conduct in the future. These include adopting an anti-discrimination policy and procedure complying with fair housing laws; including a fair housing logo or statement on all electronic and print advertisements; displaying a poster about the Human Rights Law in their place of business; and participating in an annual fair housing training course. The individual agent involved in the allegations of the complaint also agreed to attend a fair housing training course, and Urban Pads LLC added a letter of discipline to the agent’s file. 

Under the terms of the agreement, Urban Pads LLC also agreed to actively assist FHJC in placing ten people with rental subsidies into residential housing each year for the next three years—at no cost to the renters. This case serves as a powerful reminder of the fair housing protections provided to all New Yorkers—and of the Division’s commitment to making those rights a reality.  

Lawful Source of Income Protections Recently Upheld by State Court 

The settlement announced today comes after a state appellate court decision earlier this year that upheld the Human Rights Law’s source of income protections for the first time. In that case, an individual with a Section 8 voucher filed a complaint alleging that a housing provider turned him away because the landlord wanted their tenants to be “working people.” After an investigation, the Division ordered the housing provider to pay more than $15,000 in fines and damages and participate in fair housing training. The respondents appealed the Division’s order, and a state Appellate Division decision upheld it in full, marking a significant victory for the Division in our efforts to enforce source of income protections around New York State—including the case highlighted today. 

About the New York State Division of Human Rights? 

The New York State Division of Human Rights is the state agency that enforces the New York State Human Rights Law, the country’s oldest state-level anti-discrimination law, and one of the most comprehensive sets of civil and human rights protections in the nation.  

Under the leadership of Commissioner Denise M. Miranda, the Division is improving how New Yorkers can report discrimination. Recent upgrades include the launch of a civil rights call center where trained staff help people file reports of discrimination with the agency in real time. Upgrades also include a centralized Intake Unit to more efficiently process discrimination reports, increased staffing—including the hiring of new investigators, and creating new units dedicated to training, internal controls, and data analysis. 

Each year, the Division secures millions of dollars in compensation for New Yorkers who experience discrimination. The Division also orders remedies that can include reinstating jobs, mandating changes in housing policies, and awarding back pay with interests. In Fiscal Year 2025 alone, the Division awarded more than $10 million in compensation to New Yorkers facing discrimination.  

The Division includes several specialized units, such as those focused on housing, systemic patterns of discrimination, and hate and bias prevention. In all cases, the Division acts as a neutral state agency representing the public’s interest—not functioning as an attorney on behalf of either party to a complaint.  

Anyone who believes they have experienced discrimination can report it to the Division by calling (844) 697-3471 or visiting dhr.ny.gov. All Division proceedings are conducted free of charge.  

For more information about the New York State Human Rights Law or to report discrimination, please visit dhr.ny.gov, and follow the Division of Human Rights on social media: Facebook, Instagram, LinkedIn, Threads, X, and YouTube.