Kona HOA to pay $162,500 for Fair Housing Act violations

Yahoo

13-02-2025

The U.S. Department of Justice secured a $162, 500 settlement for a man living with paraplegia who was discriminated against by a Kona homeowners association to the point he canceled a condo sale and moved out.
Gerritt Schaffer, who is paraplegic, tried to buy and live at a unit in Kailua Village Condominiums, 75-5766 Kuakini Highway in Kailua-Kona.
His condition was caused by injuries 'resulting from an accident in 2016, ' according to the federal civil complaint filed Aug. 19. He is unable to walk and uses a wheelchair. Paraplegia is an injury in the lower spinal cord affecting the lower body and legs, according to the National Institute of Health.
In August 2021, while living in Oregon, Schaffer visited Hawaii and 'instantly noticed that the warmer water and milder climate ' here helped alleviate his pain. He began looking for a condominium or house that was affordable, accessible and close to the ocean to facilitate his physical training for an Ironman triathlon.
The Kailua Village Condominium Association, managing agent Associa Hawaii, the sellers of a Kailua Village condominium unit and the sellers' Realtor 'unlawfully denied ' Schaffer's requests for an accessible parking space, a temporary ramp to access his condominium unit and installation of an accessible toilet at his own expense.
On Oct. 19, 2021, the day he moved into Unit 205, Schaffer went to Lowes to buy materials for a temporary ramp for the four steps to access the unit, where he was living for $75 a day under an early-occupancy agreement during the escrow period.
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When Schaffer was attempting to set up the temporary ramp needed to access Unit 205, he was approached by Ron Zentner, property manager of Kailua Village at the time.
Zentner allegedly made 'several concerning statements ' to Schaffer, like federal accessibility laws are 'bulls—rules ' and expressing the 'belief that Kailua Village did not need to comply ' with federal accessibility laws, as it was 'grandfathered in.'
Zentner also reportedly told Schaffer that 'people in wheelchairs ' had previously considered moving to Kailua Village but ultimately decided not to.
After the exchange, Zentner emailed an employee of the management company, Benjamin Willoughby, who worked for Associa as its director of operations for Hawaii County, and other KVCA board members and was told that any requests for modifications needed to be made in writing with a form prepared by the association's attorney.
KVCA member Susan Winn, who also expressed concern about the liability of the temporary ramp, responded, suggesting that they serve the 'prospective new owner with the legal opinion and try to discourage the sale.'
On Oct. 24, 2021, Schaffer emailed his written requests for a temporary ramp and accessible parking spot to the condo's owners, Bruce and Deborah Stern, who forwarded his requests to Winn.
That same day, KVCA member Stephanie Smedes emailed other members of the board and Willoughby suggesting that Schaffer be told of an expensive upcoming plumbing project.
'Perhaps if (Mr. Schaffer ) knows that (the project ) is coming up … he may be more reluctant to purchase here. However, by the sound of his last letter, I could see him construing this as not just appropriate information, but as a fabrication to stop him from moving in. So, not 100 % sure how to present this, but do wonder if he knows this, and if it might impact current decision making on his part, ' read the email.
The Sterns told Schaffer he could not install a special toilet he needs until a month and a half after the sale closed.
'After living in Unit 205 for approximately nine days, Mr. Schaffer concluded that Kailua Village would not provide him with an accessible residence, ' read the civil complaint.
The Fair Housing Act of 1968 makes it 'unlawful to discriminate in the terms and conditions ' of the sale or rental of, or to otherwise make unavailable or deny, a dwelling based on the prospective buyer or renter's disability, according to the U.S. attorney's office.
The FHA also requires that 'reasonable accommodations ' in rules, policies, practices and services be provided when necessary to 'afford equal housing opportunities to persons with disabilities.'
An investigation by the U.S. Department of Housing and Urban Development revealed that 'reasonable cause existed to believe that illegal discriminatory housing practices had occurred.'
The case was resolved by two consent decrees approved by the federal district court in October and January. The named defendants will pay Schaffer $162, 500 in damages and are required to complete FHA training.
Additionally, Kailua Village is required to adopt a U.S. Department of Justice-approved 'reasonable accommodation and modification ' policy, and for a period of two years, Kailua Village and Associa Hawaii must comply with certain record-keeping and reporting requirements to ensure FHA compliance.
Assistant U.S. Attorneys Sydney Spector and Dana Barbata handled the civil action.
Anyone who believes they have been victims of housing discrimination can submit a report online at civil rights.justice.gov or contact the Department of Housing and Urban Development at 800-669-9777 or hud.gov.