PROVIDENCE – A Pennsylvania-based national real estate management company is being taken to court by R.I. Attorney General Peter F. Neronha for allegedly charging renters illegal application fees and conducting other discriminatory behavior, a possible violation of the state’s Unfair and Deceptive Trade Practices Act.
Neronha on Wednesday filed the lawsuit in R.I. Superior Court claiming that A.R. Building Co. – which has properties in Cumberland, East Providence, North Kingstown and North Smithfield – assessed the illegal fees, sometimes more than once to the same prospective tenant. The lawsuit alleges that A.R Building overcharges prospective tenants for screening fees, while also failing to provide possible tenants with copies of screening documents and ways to submit their own screening documents to avoid fees – all of which are against state law.
An example Nerohna referenced in the lawsuit states a possible tenant allegedly submitted two applications to A.R. Building for a property at Dowling Village in North Smithfield earlier this year, where Dowling Village charged the tenant $280 in total fees to submit her first application for a background check. The tenant’s application was allegedly rejected “without explaining the purpose of the fees” or offering the tenant copies of the documents because Dowling Village claimed the tenant didn’t make enough money and needed a co-signer, the lawsuit claims.
That same tenant, according to the lawsuit, was charged another $280 by Dowling Village after submitting a second application a week later, this time with a co-signer, and A.R. Building offered “no explanation” for the additional fees.
“When the prospective tenant requested a fee waiver, citing her previous application approximately one week earlier, she was denied,” the lawsuit claims. “Dowling Village rejected her second application, citing credit reasons.”
Neronha’s lawsuit also alleges that A.R. Building subjected applicants who are disabled to a “more onerous” application process than for nondisabled applicants, which would violate the state’s Fair Housing Act. The law, Neronha says, prohibits landlords from creating a rental process that is discriminatory toward those with disabilities.
In a statement Wednesday, Neronha says a fair marketplace demands all parties comply with state law and Rhode Islanders are “struggling enough as it is… when it comes to housing.”
“We must prioritize making it easier, not harder, for people to obtain safe, affordable housing, and that’s why my office will continue to seek out and hold accountable bad actors who place profits over the basic rights of Rhode Islanders,” Neronha said.
Neronha also says those who feel they were victims of unfair or discriminatory housing practices are urged to call his office at 401-274-4400 or file a complaint on
the office’s website.
The full complaint
can be read here.
James Bessette is the PBN special projects editor, and also covers the nonprofit and education sectors. You may reach him at Bessette@PBN.com. You may also follow him on X at @James_Bessette.
