City Developer Settles Handicap Suit

By JOSEPH DE AVILA

The federal government and real-estate firm Friedland Properties settled a lawsuit alleging that the developer didn't provide housing access for the disabled.
In a complaint filed last year, the Manhattan U.S. Attorney's office said Friedland Properties' 22-story apartment tower on the Upper West Side called the Melar failed to meet federal antidiscrimination laws for wheelchair access and other requirements.
People in the New York real-estate industry have closely monitored the case. For years, developers in New York built apartments believing that meeting the city's handicap-accessibility requirements satisfied a federal law called the Fair Housing Act, according to officials with the Real Estate Board of New York, the industry's lobbying group.
But that perception was challenged after the U.S. Attorney's office began investigating Friedland Properties and other property owners for possible violations of the federal law.
"The Fair Housing Act is an important safeguard for those with disabilities and helps ensure that they can enjoy full use of and access to their living spaces," Manhattan U.S. Attorney Preet Bharara said in a statement.
Officials with Friedland Properties didn't return calls seeking comment.
Under the settlement approved by a federal judge Friday, Friedland Properties agreed to update bathrooms, kitchens and closets to accommodate wheelchair users. The developer is setting up a settlement fund of $180,000 to cover any discrimination claims and agreed to start a fund of $288,300 for future improvements. The company also will pay a $40,000 penalty.
Officials at the Real Estate Board of New York say the newly approved deal doesn't clarify discrepancies between city and federal laws and raises questions about antidiscrimination regulations for future development.
"We hoped the settlement would lead to some clarification," said Steve Spinola, president of the Real Estate Board of New York. "It means we are still in limbo."
U.S. prosecutors said that any discrepancy between city and federal law wasn't relevant to the Melar case because the suit alleged that the building violated both city and federal laws, according to court documents.
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