Attorney General James Stops Illegal Housing Discrimination in New York City

NEW YORK – New York Attorney General Letitia James today stopped New York City property owner and management company Shamco Management Corp. (Shamco) from illegally denying housing opportunities to low-income renters in New York City. The Office of the Attorney General (OAG) found that Shamco, which owns or manages approximately 1,300 units, including 1,161 rent stabilized units, in 31 buildings primarily located in Harlem and Central Brooklyn, violated New York’s human rights laws by refusing to rent to New Yorkers with housing vouchers, intentionally ignoring potential tenants who disclosed their voucher status, artificially inflating rents above voucher thresholds, telling voucher holders an apartment was rented when it was still available, and other discriminatory practices. 

As a result of OAG’s action, Shamco will pay $400,000 to potential renters who were unjustly denied housing because of their voucher status. Shamco will also 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,” said Attorney General James. “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.” 

Government-issued rental vouchers, such as the Section 8 Housing Choice voucher program and CityFHEPS, provide housing assistance to the lowest-income households to rent decent, safe housing in the private market. These programs also aid senior citizens and disabled persons on fixed incomes, displaced families, and homeless individuals with disabilities.

Refusing to rent to prospective tenants because of their source of income wrongfully denies New Yorkers their right to equitable housing access and is an illegal and discriminatory act under New York state and New York City human rights laws. Owners, landlords, property managers, rental agents, salespersons, and brokers cannot refuse to accept potential tenants solely because they receive housing subsidies. 

The OAG opened an investigation into Shamco in late 2021. Throughout the investigation, OAG found multiple instances of discriminatory practices, including refusing to show voucher holders rental units, telling a voucher holder the apartment was rented when it was in fact available, ignoring potential tenants once they disclosed their voucher status, and marking potential applicants with vouchers as “not qualified” regardless of their credit or other qualifying factors. Shamco also told its brokers contradictory policies of how they should interact and show apartments to voucher holders, leading to biased and unfavorable treatment.

At least one Shamco employee was told by their supervisors to lie to prospective tenants if they discovered they had a voucher during an apartment tour and make up reasons to delay the rental process. If the prospective tenant followed up, the Shamco employee was directed to tell them that the apartment had been rented and was no longer available, even when that was not true.

A list of potential renters reviewed by OAG found that out of 42 prospective tenants, 39 applicants, all with Section 8 vouchers, were marked as “not qualified.” Shamco refused to rent to these tenants simply because they were voucher holders. One prospective tenant with cancer had a scheduled apartment tour with Shamco, but when he disclosed that he had a CityFHEPS voucher, the Shamco employee he had been working with stopped responding. Another voucher holder residing in a shelter was promised that Shamco would follow up with him about a unit at the end of the month, but Shamco ghosted him because of his voucher status.

Shamco will pay $400,000 in restitution to be distributed to people who were illegally denied housing. Within one year, Shamco will rent 65 units from the company’s portfolio to voucher holders. If Shamco fails to meet this obligation without a valid excuse, the company will pay a penalty of $1,000 per month per unit, which will go to the OAG’s affordable housing fund with HPD. Shamco will also accept voucher holders as tenants beyond its obligation in the settlement and is forbidden from illegally steering away or otherwise mistreating voucher holders. The OAG will ensure Shamco’s compliance with the settlement for a period of three years. 

Shamco will also implement new nondiscrimination policies and all employees and supervisors will undergo fair housing training with a trainer approved by OAG. Additionally, Shamco will post notices at all of its properties in New York City and on all promotional materials for listings stating that the company is an Equal Housing Opportunity Provider and accepts housing vouchers.

This is the latest action taken by Attorney General James to fight housing discrimination and protect low-income tenants. In February, Attorney General James announced an agreement with real estate broker Pasquale Marciano and his companies to stop illegal policies that denied housing opportunities to low-income renters. In October 2023, Attorney General James took action against another Westchester property owner and manager for discriminating against low-income renters. In 2022, Attorney General James also took action to stop “tenant blacklisting” and partnered with HRI to stop the real estate company Compass from denying housing to low-income New Yorkers. In July 2022, Attorney General James recovered nearly $300,000 of illegally withheld security deposits for Brooklyn tenants. In April 2022, Attorney General James sued Brooklyn-based eviction lawyers for engaging in deceptive rent collection practices and initiating frivolous lawsuits against New York tenants.

It is illegal in New York State for any owner, managing agent, broker, or any other representative to refuse to rent, sell, or lease housing to any person based on their source of income. New Yorkers who suspect they are victims of source of income discrimination are encouraged to file a complaint. 

“Housing is a fundamental human right, and shame on Shamco for denying tenants fair housing access,” said Congressman Adriano Espaillat. “I applaud Attorney General Letitia James for her ongoing efforts to stop illegal housing discrimination in New York City. 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.”

“As a staunch advocate for fair housing and equal opportunities for all New Yorkers, I commend Attorney General Letitia James for her decisive action against Shamco Management Corp,” said State Senator Kevin Parker. “Discrimination against low-income renters is illegal and fundamentally unjust. Every New Yorker deserves a fair chance at securing safe and affordable housing, regardless of their economic situation. This settlement sends a clear message that such discriminatory practices will not be tolerated in our city. We must continue to work together to ensure that housing remains a right, not a privilege.”

“Today's decisive action by Attorney General Letitia James against Shamco's unlawful practices, not only rectifies a grave injustice but also reaffirms our state’s commitment to ensuring that every New Yorker, regardless of income source, has access to safe and affordable housing,” said State Senator Robert Jackson. “Let this serve as a clear message: NY stands firm in ensuring that housing rights are upheld across our city, safeguarding fairness and dignity for all.”

“Congratulations to Attorney General James and her team for exposing the unlawful discriminatory practices of Shamco,” said State Senator Cordell Cleare. “City residents are already experiencing skyrocketing rents and an extreme lack of affordable units. Actions like this don’t just harm those with vouchers, they further deplete the rapidly decreasing number of affordable units in our housing, which pushes the market prices even higher overall. Thanks to Attorney General James’ office, not only has this owner been stopped, but badly needed affordable housing is being returned to the market.”

“I commend Attorney General Letitia James for taking decisive action against Shamco's discriminatory practices,” said Assemblymember Al Taylor. “Housing is a fundamental right, and denying anyone access based on their source of income is not only illegal but morally unacceptable. Let this be a message to all landlords and property managers: New York will not tolerate any form of housing discrimination. We must continue to fight for fair and equitable housing opportunities for all New Yorkers, especially our most vulnerable communities.”

“Housing is a fundamental human right; and housing vouchers are a critical lifeline allowing low-income New Yorkers the economic opportunity to rent decent, safe housing they deserve, while offering guaranteed rent payment for landlords,” said Assemblymember Rodneyse Bichotte Hermelyn. “It's despicable that far too many landlords like Shamco discriminate against the elderly, disabled and other vulnerable communities in dire need of housing; while breaking the law at the expense of all New Yorkers by artificially inflating rental rates and availability. Attorney General Letitia James is sending a clear message to unscrupulous property managers: housing discrimination is immoral, illegal, and you will be caught and punished to the fullest extent of the law.”

“As Deputy Majority Whip of the New York State Assembly, New York State Assembly Member of Harlem‘s 70th Assembly District and a longtime advocate for housing justice, I am proud to stand with Attorney General Letitia James in her relentless pursuit of fairness and equity in housing,” said Assemblymember Inez E. Dickens. “The discriminatory practices uncovered at Shamco Management Corp. are unacceptable and have deprived too many New Yorkers of their basic right to secure, stable housing. Attorney General James' decisive action not only holds these bad actors accountable but also sends a powerful message that New York will not tolerate such injustices. I commend her for her unwavering commitment to protecting our most vulnerable residents and ensuring that everyone, regardless of their income source, has a fair chance to find a home.”

“Source of income discrimination is just another way to perpetuate inequality and keep working families from accessing the stable housing they deserve,” said Assemblymember Phara Souffrant Forrest. “We must end this unjust practice and ensure that everyone, regardless of how they pay their rent, has a fair chance at a safe and secure home. I applaud Attorney General James for her strong action against this predatory practice and look forward to working with her in the future to strengthen these protections.”  

“As a fierce advocate for housing justice and a partner in the fight against predatory landlords, I am deeply gratified to see Attorney General James take decisive action to put an end to illegal housing discrimination,” said Assemblymember Stefani Zinerman. “This settlement delivers long-overdue justice to the many New Yorkers who were wrongfully denied a home and sends a powerful message that such egregious practices will not be tolerated in our city. My work in the Assembly, particularly with the introduction of Bill A10471, is driven by the same mission: to ensure that landlords who repeatedly flout housing maintenance codes face stronger enforcement and accountability. Together, with Attorney General James, we are committed to ensuring that every New Yorker, regardless of income or background, has the right to safe and fair housing.” 

“With affordable housing nearly impossible to find in the city, Shamco discriminating against low-income New Yorkers is disgraceful,” said Manhattan Borough President Mark Levine. “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.”

“As Council Member for District 9, I stand in full support of Attorney General Letitia James’ decisive action against Shamco Management Corp,” said Council Member Yusef Salaam. “Their discriminatory practices targeted some of our most vulnerable neighbors right here in Harlem, denying them the basic human right to secure safe and affordable housing. This settlement is more than just a financial penalty—it is a victory for justice and a powerful reminder that Harlem will not tolerate discrimination in any form. I commend Attorney General James for her unwavering commitment to protecting our community and ensuring that all residents, regardless of their income or background, are treated with the dignity and fairness they deserve.”

This matter was handled by Assistant Attorney General Kyle Rapiñan, Attorney General Fellow Xhoana Ahmeti, and former Assistant Attorney General Joel Marrero of the Civil Rights Bureau under the supervision of Bureau Chief Sandra Park, along with Housing Protection Unit Chief Brent Meltzer. The Civil Rights Bureau and the Housing Protection Unit are part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.