OKLAHOM CITY - The Lone Wolf Housing Authority, its former executive director and its former program assistant have reached a settlement with the U.S. Justice Department that resolves a discrimination lawsuit filed in the federal court here after more than four years of futile negotiations.
The complaint alleged that in March 2015 the LWHA discriminated against a Black woman, Alexandra Zackery, and her daughter, then 5 years old, who were homeless and staying at a shelter “while they searched for stable and affordable housing.”
U.S. District Judge Bernard M. Jones in Oklahoma City’s Western District federal court signed a consent decree in the case on Dec. 29, 2021.
The document provides that the Housing Authority of Lone Wolf; David M. Haynes, former executive director of the LWHA; and Myrna Hess, formerly the LWHA program assistant, will pay $75,000 in damages to the aggrieved parties. Alexandra Zackery will receive $45,000, and $20,000 will be held in trust for her minor daughter. Legal Aid Services of Oklahoma, whose fair housing testing exposed the LWHA’s discriminatory conduct, will receive $10,000.
Ms. Zackery and her daughter live in Oklahoma City, a Legal Aid attorney said.
The consent decree forbids the LWHA, Hess and Haynes from attempting to discharge any part of the debt via bankruptcy.
“The time for racial discrimination in housing should be far behind us,” said Principal Deputy Assistant Secretary Demetria McCain of the U.S. Department of Housing and Urban Development’s Office for Fair Housing and Equal Opportunity.
Extensive conditions imposed
The housing authority is enjoined from discriminating against any person in the terms, conditions, or privileges of renting a dwelling, “or in the provision of services or facilities,” because of an individual’s race or color; refusing to show an available dwelling to a person or discouraging any person from inspecting or renting a unit, because of race or color; or misrepresenting dwelling information or availability to a person because of the individual’s race or color.
Haynes and Hess informed the court that they no longer work for the LWHA and “do not plan to seek or accept employment in the management or operation of residential rental properties.” However, if either of them does accept a job in the management or operation of residential rental property, he/she must:
• notify the prospective employer in writing of the LWHA lawsuit and its resolution, and provide the employer with a copy of the consent decree;
• notify the federal government of the identity, address and telephone number of the employer;
• undergo training “on all applicable aspects” of the Fair Housing Act and Title VI that pertain to residential rental property, “with specific emphasis on discrimination on the basis of race and color and including the topic of implicit bias;”
• so long as the consent decree is in effect, the three defendants must notify the federal government in writing within seven days of any “formal or informal housing discrimination complaints (including all written and oral complaints) against them or their employer, copies of any written complaints and a detailed summary of any oral complaints.
Should Haynes or Hess acquire a direct or indirect ownership, management, or other financial interest in any residential rental property, he/she must participate in a training program of at least two hours on the provisions of the Fair Housing Act and Title VI that pertain to residential rental property.
Specific conditions imposed on the housing authority
The housing authority’s current and future employees and board members must undergo training on the Fair Housing Act and Title VI, implement non-discriminatory procedures, and submit to compliance and reporting requirements.
The authority’s public housing units must be “made available for rent to all applicants on the same terms and conditions, irrespective of race, color, religion, national origin, sex, disability, or familial status.”
The LWHA is required to publish and update monthly on its website or publicly accessible social media account a statement “indicating whether the Housing Authority has units available for rent and, if so, indicate how many units are available, how many bedrooms the available unit(s) have,” and whether those units are accessible to handicapped persons.
The non-discriminatory procedures must be implemented by late January.
Furthermore, the LWHA must provide a copy of the consent decree to all its current board members and employees, and to each new board member and employee.
Also, by the end of January all LWHA board members, officers, employees and agents “shall undergo training on all applicable aspects of the Fair Housing Act and Title VI…”
The consent decree will be in effect for four years. However, the federal government is authorized to ask the court to extend the duration of the agreement “in the event of non-compliance, whether intentional or not, … or if it believes the interests of justice so require.”
Case has dragged on for more than 6½ years
The lawsuit against the LWHA was filed in federal district court on December 15, 2020, after investigations were conducted by the U.S. Department of Housing and Urban Development and by the federal Justice Department.
A representative of Legal Aid contacted the Lone Wolf Housing Authority on behalf of Ms. Zackery in March 2015 to inquire about the availability of housing. The Legal Aid representative spoke on the telephone with Haynes, who was then employed as executive director of the LWHA and provided information about the woman and her child and their circumstances but did not discuss their race.
During that conversation, Haynes “stated … that housing unit(s) were available … and could be occupied within a week,” the lawsuit petition relates.
Legal Aid faxed Ms. Zackery’s completed application to the Housing Authority. On the first page of the application, where the form asked the applicant to indicate the number of prospective household members of each “ethnic group,” Ms. Zackery wrote the number “2” next to the category “Black, not of Hispanic origin”.
Twelve days later Haynes signed and approved a form denial letter in response to Ms. Zackery’s application. “Under the ‘Eligible’ header on the … letter, Mr. Haynes checked the box stating that no units were available,” the federal government charged.
Myrna Hess, who was then the LWHA program assistant, faxed to Legal Aid the form denial letter signed by Haynes. In addition, Ms. Hess “contacted Legal Aid’s representative by telephone to inform her that no units were available” for Ms. Zackery and her daughter.
Two women perform racial ‘testing’
Because of Ms. Zackery’s “experience,” Legal Aid “conducted testing” to determine whether the LWHA discriminated against potential residents “on the basis of race.”
In November 2015 a white female “tester” visited the LWHA “to seek housing” for herself and her 4-year-old daughter.
Haynes “escorted the white tester” to view three vacant apartments at the housing authority. Afterward, Hess “described the application process” to the white woman, “made no mention that the Housing Authority maintained a zero-tolerance drug policy and never mentioned a waiting list for tenancy.”
The very next day a Black female tester visited the LWHA to seek housing. “Ms. Hess stated that the Housing Authority did not have any units available at that time” and allegedly told the African-American tester “that the Housing Authority was ‘a zero drug tolerance facility’.” Further, neither Hess nor Haynes showed the Black tester any housing units.
• Between 2015 and 2019 the LWHA had “zero African-American heads of household leasing any of their housing units,” the government reported.
• Lone Wolf is a Kiowa County town that had a population of approximately 400 in 2018, according to the U.S. Census Bureau.
• The LWHA operates 25 low-income housing units: 10 one-bedroom apartments, 10 two-bedroom apartments, and 5 three-bedroom apartments, court records show.
• The Housing Authority was and still is a recipient of financial assistance from the federal Housing and Urban Development (HUD) Office of Public and Indian Housing.
• As a condition of receiving federal aid, the LWHA “certified that it agreed to comply with all requirements imposed by” the federal Civil Rights Act.
• The Civil Rights Act and HUD’s implementing regulation “provide that “[n]o person in the United States shall, on the ground of race … be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.”
Complaint filed with HUD
On March 1, 2016, Ms. Zackery and Legal Aid filed a joint complaint with HUD about the alleged actions of Haynes and Hess. HUD “conducted and completed an investigation of the complaints, attempted conciliation without success,” and determined that “reasonable cause existed to believe” that Hess and Haynes “engaged in illegal discriminatory housing practices in violation of the Fair Housing Act.”
HUD notified the LWHA on Sept. 10, 2019, that it had failed to comply with federal law. On Sept. 28, 2020, HUD concluded “that it was unable to voluntarily resolve” the allegations and would refer the matter to the Justice Department for enforcement, which HUD did on Oct. 30, 2020. “The U.S. has determined that all administrative requirements have been exhausted and that securing compliance cannot be achieved by voluntary means.”
Housing authorities “are entrusted with taxpayer dollars to serve some of the most vulnerable members of our communities,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “It is abhorrent that a housing authority would deny a home to any applicant on the basis of race.”