Former tenants of Richfield apartments settle discrimination claims against landlord

Hundreds of former residents of a Richfield apartment complex that was taken upscale have resolved discrimination claims against the property's owners. They'll get a piece of a $650,000 settlement.

The vast majority of the residents had low or moderate incomes and were people of color, immigrants or people with disabilities. They contended that the owners of the Crossroads at Penn — now Concierge Apartments — broke housing discrimination laws when they renovated around 700 apartments, raised rents and required tenants to apply under tougher income and background screening standards.

"The new owner was deliberately attempting to remake the tenant population from one largely people protected by the Fair Housing Act to young, white urban professionals," said Tim Thompson, an attorney representing the tenants.

Thompson said a one-bedroom apartment there was rented for about $700. Now it goes for $1,100 or more. The property owners have added amenities such as a dog park and pet spa, underground theater, game room, resort-style pool and grilling stations, when they could have pursued a less luxurious model and still profited at the lower rents.

The owner, Soderberg Apartment Specialists, issued a statement saying the firm did nothing wrong. The company contends it would have won in court but said a resolution was appropriate due to "practical considerations, including the unique characteristics of this property."

The firm would not agree to an interview.

Craig Goodwin and his wife, Donna, lived at Crossroads for about five years. He said the owners pushed people out with higher rents and other moves.

"If we stayed, we had to pay a higher rent and go through the criteria of credit scores and stuff like that. So, if you're on Section 8, you possibly can't do that. So everybody had to move. Everybody who got a notice, practically the whole complex." Goodwin said.

Another tenant, Jurline Bryant, complained that on top of higher rents, the renovation work was noisy and very disruptive.

"I was forced out. I'd been there for 15 years. I wasn't given enough time by the manager to look for a decent place or somewhere I wanted to go," Bryant said, adding she found another residence in Bloomington.

Thompson, the tenants' lawyer, says the settlement is not going to stop developers from re-doing formerly affordable apartments and raising the rent.

"But when an owner undertakes to do this with a building which has served a clientele protected by the Fair Housing Act, they're going to have to be much more careful in examining the impacts of what they're doing and their business model," he said.

A judge has given preliminary approval to the settlement. Most of the money will go to tenants and efforts to avoid the displacement of other renters in the future.