A NYC property owner and management company was hit with a hefty $400,000 punishment for illegally denying housing to potential renters in the Big Apple because of their sources of income, NYS Attorney General Letitia James announced Tuesday.
Shamco Management Corp., which owns or manages approximately 1,300 units, 1,161 of which are rent stabilized, in 31 buildings mostly located in Harlem and central Brooklyn, denied people access to housing because they had been given city vouchers designed to help low-income New Yorkers find homes, James’ office said.
Government-issued rental vouchers help low-income households with the ability to rent “decent, safe housing in the private market,” according to a press release from the attorney general. The vouchers, which include Section 8 housing, require participants to comply with all program requirements, which includes completing an annual certification.
James said Shamco violated New York’s human rights laws by refusing to rent to people who were using the vouchers to obtain housing, adding that the company intentionally ignored potential tenants once they revealed their voucher status.
Because it broke the law, Shamco will now pay $400,000 to potential renters who were denied housing because of their voucher status. The property group will also have to rent at least 65 units to tenants with housing subsidies and provide them with at least one renewal lease.
“Housing is a human right, and everyone deserves fair access to housing, regardless of their source of income,” James said. “Shamco’s discriminatory practices against voucher holders denied hardworking families the opportunity to secure stable housing and further exacerbated our housing crisis. My office will always stand up to ensure all New Yorkers are afforded equitable opportunities to find safe and affordable housing.”
Shamco did not return multiple requests for comment from amNewYork Metro.
The investigation into Shamco began in 2021 after the attorney general’s office uncovered several instances of discrimination, including refusing to show voucher holders rental units. The investigation also found that the company told a voucher holder that an apartment was already rented, though it was in fact available.
In another instance, one potential renter with cancer had a scheduled apartment tour with Shamco. But when he told the company he had a CityFHEPS voucher — a rental assistance supplement — the employee he had been working with stopped responding.
Additionally, according to the attorney general’s office, a shelter-based voucher holder was promised that Shamco would follow up with him about a particular unit, but, he was soon “ghosted” because of his voucher status.
Elected officials whose districts include areas where Shamco operates, reacted to the attorney general’s action, including Manhattan Borough President Mark Levine.
“With affordable housing nearly impossible to find in the city, Shamco discriminating against low-income New Yorkers is disgraceful,” Levine said. “No landlord is above the law, and everyone deserves safe and fair housing. I’m grateful to Attorney General James for holding Shamco accountable and fighting on behalf of New York’s most vulnerable renters.”
Congress Member Adriano Espaillat, who represents Harlem and other nearby areas, said “shame on Shamco” for denying the potential tenants fair housing access.
“No person in our country should be denied a place to call home because of their source of income, and any landlord who fails to comply with providing equitable and just services should be held accountable,” he said.
