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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Couple Settles With Landlord For $10,000 Palouse Properties Accused Of Violating Fair Housing Laws

Eric Sorensen Staff writer

One of the Palouse-area’s largest property managers has agreed to pay a $10,000 settlement to a Genesee couple who claimed the company violated federal fair housing laws.

Nancy Draznin and Ken Nagy said Palouse Properties discriminated against them when they went to rent a two-bedroom apartment in 1995. Upon learning the couple had two children, an office worker said, “You have two children! We can’t rent you the apartment.”

When the couple protested, the company agreed to rent to Draznin and Nagy but said they would have to leave at the end of their six-month lease. Palouse Properties President Don Mackin later confirmed to the Moscow-Pullman Daily News that his office manager said his company “would not be inclined” to renew the couple’s contract after it expired that May.

The couple included this remark as evidence of retaliation in its complaint to the U.S. Department of Housing and Urban Development.

Nagy, a self-employed carpenter, said Wednesday he hopes the settlement will make property managers realize they have to abide by fair housing laws.

He said he also hopes it will show other renters that they have a legal recourse if they feel wronged.

“If they feel they’re being discriminated against, they can do something about it,” Nagy said.

“And not only that, something will happen.”

Mackin, a former state senator and husband of former University of Idaho President Elisabeth Zinser, admitted no guilt in an agreement signed last month with HUD.

“It was strictly a business decision,” he said, explaining that he did not want to go through the cost and trouble of administrative hearings and possible court action.

Mackin, whose company manages about 600 units, described the apartment as a one-bedroom unit with an extra room and said it was too small for four people.

Nagy said the unit was advertised as a two-bedroom apartment.

“It was the biggest apartment we’ve ever lived in,” he said.

In the agreement, Mackin and his business partner, Chien Wai, acknowledged the Fair Housing Act prohibits discrimination on the basis of family status.

Mackin and Wai also agreed to educate their employees about the act and keep extensive records, including family status, of anyone who inquires with them about housing and actions the firm takes.

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