Shortly after Cornerstone Residential Management company settled a class-action lawsuit claiming discrimination against families with minor children, the housing developer was hit by another lawsuit alleging it has violated Fair Housing Act protections for people with disabilities for decades.
Moreover the developer is accused of cashing in on federal and state funds and tax exemptions agreeing in writing to comply with federal requirements it did not honor. (Cornerstone did not return calls by press time.)
The protections for people with disabilities in new construction clause has been active since March 1991, a few years after the act was specifically amended to require that all builders, developers, architects, and other housing providers design and construct housing accessible to people with disabilities, particularly those using a wheelchair, so they can live independently in their community of choice.
“It is just a shame we have to do this 20 years after the law was passed,” said National Fair Housing Alliance president and CEO, Shanna Smith, during a press conference that announced the lawsuit. Cornerstone was established in 1993, after the law was passed, which is important, she added, because one would assume that Cornerstone as one of the top 10 builders in the country would have complied with the law’s specific seven technical requirements for new construction.
Their investigation started in early 2010. Ironically it was the 2005 minor children discrimination case that led the plaintiffs, the National Fair Housing Alliance and West Palm Beach Coalition for Independent Living Options agency for people with disabilities, to discovery they say was strong enough to support their discrimination allegations.
The lawsuit alleges CRM of Miami, one of the top five multifamily housing developers in Florida, failed to comply with federal accessibility standards in the design and construction of their properties making it impossible for people with disabilities to live independently or access housing options.
NFHA and CILO of West Palm Beach investigated 28 properties around Florida and allege each property was in violation of the accessibility requirements of the Fair Housing Act. Violations include steps to access the entrance or narrow doorways and hallways, which is equal to a sign that says: “No disabled people are allowed!” Smith said. Cornerstone designed and constructed apartments with two-step entrances that are not accessible for wheelchair or walker users who rent or visit someone who lives in these units. Also bathrooms, kitchens, heating/cooling systems and parking spaces are not accessible.
It is alleged that Cornerstone has received subsidies for the building of many of their properties and also received funds from the Neighborhood Stabilization Program. The company continued to receive federal dollars, community development block grant funds as well as tax credits but did not follow the requirements to build properties that are in compliance with the Federal Fair Housing accessibility guidelines, Smith said, and recertified annually that they are in compliance with such laws. The alliance is currently reviewing the dollar value of such benefits.
Monitoring developers’ compliance appears to be a daunting task. Most states do not have enough employees to review new housing developments while they are under construction and inspectors “are not well versed” in the Fair Housing Act requirements, Smith said, so they take the developers’ word and presume they will follow applicable codes, rules and regulations.
Genevieve Cousminer, executive director of the West Palm Beach CILO, which focuses on affordable and accessible housing needs in Florida, said the state hosts almost 1.3 million people with disabilities, or 7.6% of the population.
