The Civil Rights Division of the Department of Justice announced a new initiative that brings local law enforcement, legal service providers, and DOJ officials together in order to encourage victims to report instances of sexual harassment, increase awareness, assist in obtaining necessary resources for relief, and ultimately, continue the vigorous enforcement of the Fair Housing Act’s ban on sexual harassment.

This initiative stemmed from four cases in 2017, wherein DOJ recovered over $1 million in damages for claims of sexual harassment and violations of the Fair Housing Act. Two of those cases are U.S. v. Kansas City, Kansas Housing Authority and U.S. v. Tjoelker.

On September 29, 2017, DOJ executed a settlement agreement resolving a case against Kansas City Kansas Housing Authority (KCKHA). The Complaint alleged KCKHA employees engaged in a pattern or practice of sexually harassing female housing applicants and residents. One defendant even admitted in sworn deposition testimony that he exposed himself to multiple females. In the agreement, the fourteen aggrieved females were awarded $360,000 in monetary damages. In addition, KCKHA was ordered to implement a written policy against sexual harassment, including a formal complaint procedure to be approved by DOJ and to pay a $5,000 civil penalty to the United States.

On October 3, 2017, DOJ also executed a settlement agreement against Frank Tjoelker, owner and/or manager of rental dwellings in Grand Rapids, Michigan. The Complaint also alleged that he engaged in a pattern or practice of sexually harassing actual and prospective female tenants. Allegations include unwelcome sexual comments and advances, unwanted groping or touching, offers for housing benefits in exchange for sexual favors, and taking or threats of taking adverse housing actions for those who object to such harassment or refuse to grant sexual favors. Under the settlement agreement, Tjoelker was ordered to pay $140,000 to compensate the ten victims and a $10,000 civil penalty to the United States.

Although DOJ only executed settlement agreements to obtain resolutions on the above-mentioned cases and such agreements are binding only among the parties involved, it is likely that DOJ will apply similar penalties in future settlement agreements or decisions on violations of the Fair Housing Act’s sexual harassment ban. See U.S. v. Bailey, U.S. v. Barnason, and U.S. v. Bathrick.

In this regard, as evidence of good faith compliance with the Fair Housing Act, real estate professionals are encouraged to establish written policies against sexual harassment, to train their employees and agents to identify and refrain from engaging in acts of sexual harassment, and to establish procedures for handling complaints.

Now that 2018 is here it is important to be aware of the changes in the law for our industry. This is not a list about the best events from 2017, but instead, a list that highlights the new legal landscape
that real estate attorneys face in 2018. Being familiar with these laws, regulations and opinions may help Attorneys better address their client’s goals and make them money while helping them
avoid malpractice.

Here is a link to the full article by Andrew Lieb, Esq. published in The Suffolk Lawyer. 

New section of the Real Property Law protects tenants from illegally converting dwellings in all residential leases. This statute will place an exorbitant risk on the landlords; a risk only magnified by the likelihood that a property insurance carrier will disclaim coverage for such a claim.

Read the full article by Andrew Lieb, Esq. published in the Suffolk Lawyer here.

Deceptive & Misleading Advertising

The NYS Assembly held a hearing before the Committee on Insurance on January 12, 2018, which goes into great detail about new Insurance Regulations 206 and 208.

During the first approximate 2 hours of the hearing, Superindent Maria T. Vullo of the Department of Financial Services made a statement and fielded many questions about these regulations and the industry as a whole. Then, a second panel of the big 3 title insurance underwriters discussed their take on the regulations. Next, a consumer advocacy panel and then, a title insurance agency representative testified, which were followed by the President of the New York State Land Title Association and an independent title closer. Finishing up the testimony, the Executive Director of TIRSA testified.

Beyond this hearing, real estate professionals should continue to track New York State Bills A8467 and S6704, which each relate to the definition of the phrase "an inducement for, or as compensation for, any title insurance business" as set forth in Insurance Law 6409 and can further change the title insurance industry, if signed into law.

Andrew Lieb Esq., shares the top 5 real estate laws of 2017 in Behind The Hedges. 

On December 27, 2017, the Internal Revenue Service advised tax professionals and taxpayers that 2018 state and local real property taxes paid in 2017 and assessed prior to 2018 are tax deductible in 2017. It is important to note that the real property taxes must be assessed and not merely estimated prior to 2018.

DFS Statement Regarding 11 NYCRR 228