INDIANAPOLIS — Two high-profile landlords are under scrutiny for allegedly discriminatory rental practices that may have unfairly targeted minority applicants, according to lawsuits filed by an Indianapolis-based housing advocacy organization. These landlords, backed by major private equity firms, are accused of denying housing based on flawed third-party tenant screening reports.
The Fair Housing Center of Central Indiana, which advocates across 24 counties, has brought the legal action against Tricon Residential and Progress Residential. The suits contend that these companies relied on inaccurate data regarding eviction histories and criminal records, information which adversely affected prospective tenants, predominantly impacting Black applicants. The allegations underline a broader concern over the practices of some private-equity-backed real estate businesses, accused frequently of imposing excessive fees and neglecting property upkeep.
Tricon Residential, recently acquired by Blackstone Group, and Progress Residential, controlled by Pretium Partners and overseen by former Goldman Sachs executive Don Mullen, have both denied the allegations. Statements from both companies assert adherence to Fair Housing Laws, yet express commitment to addressing the concerns raised in the ongoing lawsuits.
Screening policies that broadly exclude individuals with past criminal histories or eviction records, without verifying the accuracy or relevance of these factors, potentially discriminate against Black individuals, who statistically face higher rates of such legal encumbrances. Both companies implement policies that significantly restrict access based on criminal records; Tricon denies applicants with any felony convictions within seven years, while Progress rejects those with certain felonies ever and misdemeanors within a three-year period.
This litigation emerges amidst intensifying federal scrutiny of tenant screening practices. Recent months have seen actions from agencies like the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau aimed at ensuring fairness and accuracy in tenant screening. The FTC recently finalized a large settlement with a credit reporting agency over similar issues of erroneous eviction data.
One personal story highlighted in the litigation is that of Marckus Williams, an Indianapolis local whose prior criminal records — despite being legally expunged — purportedly led to rental application denials from both Tricon and Progress. Williams, who opened a grocery store in an underserved area of the city, shared the personal toll of these denials, including a period when he had to live in his car during the holiday season.
The controversy taps into a broader national issue, with advocacy highlighting the challenges faced by renters in today’s market, complicated by the scarcity of available and affordable housing. Legal and social proponents argue that the practice of using flawed third-party reports without verification can lead to systemic racial discrimination.
As federal authorities increase their attention to these matters, advocates like Amy Nelson, executive director of the Fair Housing Center, push for stronger community protections and adherence to fair housing laws. The litigation serves not only as recourse for those allegedly harmed but also as a call for systemic change in the rental screening process.
This ongoing issue underlines the importance of fair housing practices that are not only legal but ethical, ensuring everyone has equal access to housing opportunities without bias or hindrance based on inaccuracies or discriminatory practices.
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