Washington Attorney General Nick Brown has filed a lawsuit against California-based property management company FPI Management and the owners of five apartment complexes in Western Washington, alleging they engaged in unfair and deceptive practices against hundreds of senior tenants.
According to a statement from Brown’s office, FPI and the property owners market their apartment complexes as “low-income” units to tenants who are 55 and older. The property owners participate in the Low-Income Housing Tax Credit Program (LIHTC), where they receive tax credits in exchange for setting aside a certain number of apartment units in their buildings for tenants below a certain income threshold. The maximum rental rates under this program are set annually by the US Department of Housing & Urban Development, based on the rise or fall of the area median income (AMI) in the county where the property is located.
However, Brown claimed FPI and the property owners failed to disclose to their low-income senior tenants how their rent would be calculated and increased in the future, adding they also significantly misrepresented the quality of their apartment units, the availability and quality of building amenities like pools or fitness areas, and safety at the properties. The lawsuit said these were violations of the Consumer Protection Act.
“Housing is particularly important for older Washingtonians, and it’s hard for them to move once they’ve signed a lease,” Brown said. “It’s egregious to convince vulnerable populations they’re getting quality living when in reality they are stuck with properties in disrepair that also end up costing more than they expected over time.”
The complaint seeks an injunction preventing the defendants from continuing to engage in the unlawful conduct alleged, restitution to impacted tenants, an enhanced civil penalty of $12,500 for each Consumer Protection Act violation due to the vulnerable nature of the seniors who were targeted and impacted, and an award to the state for the costs of pursuing litigation.
