Refusing To Lease To A Nonprofit Organization Serving People With Disabilities

On March 15, 2006, the Department entered a consent decree with The Kaufman Organization, a New York property management company, resolving an allegation of discrimination in commercial leasing. The Department alleged that the landlord had refused to lease available space in a building to Sinergia, Inc., a nonprofit organization dedicated to serving low-income individuals with disabilities and their families, because Sinergia planned to use the space to run a day habilitation program for adults with mental retardation and developmental disabilities. Sinergia’s habilitation program assists in the development of social, recreational, vocational, and employment skills.

According to the complaint, after Sinergia expressed its interest in leasing available space on the second floor of a 34th Street building, and after Kaufman sent Sinergia a draft of a lease for that space, an existing tenant in the building objected to Sinergia’s tenancy because of the use Sinergia intended to make of the space. The complaint alleges that, shortly after being notified of the existing tenant’s objection, Kaufman informed Sinergia that it would lease the space only if Sinergia agreed to use the space exclusively for its administrative offices and not use any part of the space to operate its day habilitation program. Sinergia was forced to seek alternative space elsewhere and ultimately accepted less desirable space in another building.

Under the consent decree, Kaufman agreed to pay $175,000 in compensatory damages to Sinergia.