Case 6:10-cv-02068 Document 1 Filed 11/10/10 Page 1 of 9

U N I T E D S T A T E SD I S T R I C TC O U R T NORTHERN DISTRICT OF IOWA
EASTERNDIVISION

LTNITEDSTATESOF AMERICA.

)

)

Plaintiff,

)

]

V.

)

)

MICHAELNIEMAN,J.S.PROPERTY )

MANAGEMENT,L.C.,andELDERS, )

INC.,

)

)

Defendants.

l

)

ciuit\6. c1o-2068

COMPLAINT TheUnitedStatesof America("UnitedStates"a) llegesasfollows:
NATURE OF THE ACTION L Thisactionis broughbt y theUnitedStaretso enforceTitleVIII ofthe Civil RightsAct of 1968a, samendebdy theFairHousingAmendmenAtsct of 1988("FairHousing A c t " ) , 4 2 U . S . C . $ $ 3 6 0 1 - 3 6I3t i1s.b r o u g h t p u r s u a n t t o 4 2 U . S . C . S 3 6 1 2 ( o ) o n b e h a l f o f E u l a HarrisandDarleneJensena,ndpursuantto 42U.S.C.$ 36la(a).
JURISDICTION AND VENUE 2. ThisCourthasjurisdictionoverthisactionunder28 U,S.C.gg l33l and1345,and 42U.S.Cg. g3612(o)(la)nd3614(a). 3. venueis properin thisDistrictunder28 u.s.c. $ 1391(b)becausea substantiaplartof theeventsor omissionsgivingriseto theUnitedStatesc' laimoccurredthere.

Case 6:10-cv-02068 Document 1 Filed 11/10/10 Page 2 of 9
PARTIES AND THE SUBJECT PROPERTY 4. ParkTowersApartments("ParkTowers")is an84-unitresidentiapl ropertylocatedat 500SycamoreStreetin WaterlooI,owa,50703.ParkTowersreceivesproject-baseSdection8 funding.See42U.S.C.A 1437f(aF&).TheunitsatParkTowersare"dwellinssw" ithinthe meaningof theFairHousingAct,42U.S.C.g 3602(b). 5. DefendanMt ichaelNiemanis a residenot f WaterlooI,owa. At all timesrelevanto this action,Mr. Niemanhasbeenthebuildingmanagear ndmaintenancseupervisoar t ParkTowers. Mr. Niemanis theonly full-timeemployeeat ParkTowersandis responsiblfeor all aspectosf managemenitn,cludinginterviewingandapprovingprospectivetenantsp, rocessingrental applicationsd,eterminingtenantrentpaymentsp,rocessinmg aintenancreequestsa,ndoverseeing themaintenancsetaff. 6. DefendanJt.S.PropertyManagemenLt,.C.,is anIowalimitedliability companywhose principalplaceof businessandmailingaddressis 2455McCarthyRoadSE,CedarRapidsI,owa, 52403.J.S.PropertyManagemenLt,.C.,operatePs arkTowersandhiredMichaelNiemanasthe BuildingManagear ndMaintenancSeupervisobrothon itsownbehalfandonbehalfofElders, Inc. J.S.PropertMy anagemenLt.,C.,superviseMsichaeNl iemanasanemployeeJ.oyce Steffenis a memberandtheownerandregisteredagentof J.S.PropertyManagemenLt,.C. 7. DefendanEt lders,Inc.,is anIowanonprofitcorporationthatownsParkTowers.The principalplaceofbusinessandmailingaddressfor Elders,Inc.,is 500SycamoreStreet, WaterlooI,owa,50703.DarwinDirksenis theregisteredagentfor Elders,Inc.
FACTUAL ALLEGATIONS 8. EulaHarrisis a fifty-three-year-olsdinglewomanwhoresidedat ParkTowersfrom approximateAlypril 30,2007,untilapproximateFlyebruar5y,2009.

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9. DarleneJensenis a forty-two-year-olsdinglewomanwhoresidedat ParkTowersfrom approximatelyApril24,2007,until approximatelNy ovember30,2008.
10. Sinceat leastDecember 2007, Mr. Niemanhassubjectedfemaletenantsof ParkTowers to discriminationonthebasisofsex,includingseverep, ervasivea,,ndunwelcomesexual harassmentS. uchconducthasincludedb, utis not limitedto, commentingon femaletenants' bodypartsandmakingotherinappropriatseexuarl emarksm; akinginappropriatseexual gesturese;nteringdwellingunitsof femaletenantws ithoutpermissioonr noticea; nd conditioninogr suggestintghathewill conditiontangiblehousingbenefitsincludingrent,cable televisionl,ockoutfees,andpermissionto haveroommateosn theprovisionof sexuaflavors.
I l. In or aboutDecembe2r007,Ms.Haniswasgettingontheelevatorat ParkTowerswhen Mr. Niemancametowardher,madea sexuagl estureby grabbinghis groin,andsaid,"You know youwantsomeof this,"or wordsto thateffect.
12. In or aboutDecembe2r 007,Ms.Harriswascryingin herunit becauseshecouldnot affordhercabletelevisionpaymenat ndMr. Niemanhaddisconnectetdhecable.Mr. Nieman askedherwhatwaswronganduponleamingwhy shewascrying,said,"You knowwhatyou candoaboutthat,"or wordsto thateffect.
13. Mr. Niemanmadefrequenst exuacl ommentsto Ms. Harristhroughouht ertenancy, includingtellingher,"Boy, yournipplesareshowinggoodthroughrhatshirt,"or wordsto that effect,andmakingremarksaboutthepenissizeof whitemen. In responsteo Ms.Hanis's commenot n Mr. Nieman'sshortstatureh, eremarkedthatheis not,"little whereit counts,"or wordsto thateffect.

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14. On oneoccasionduringMs.Harris'stenancyM, r. Niemansuggestetdhathewould exchangeMs.Harris's$25monthlyrentpaymenftor a sexuaflavorby saying,"You knowwhat youcando," or wordsto thateffect,to avoidhavinghermotherpayherrentfor her.
15. Onanotheor ccasiodnuringMs.Harris'stenancyM, s.HanisphonedMr. Nieman becauseshehadlockedherselfoutof herapartmentS. heexplainedthatshedid nothavethe$20 lockoutfeebecauseshehadno income,andMr. Niemantold herthatshewouldneedto "think about"howshewasgoingto paythefee,or wordsto thateffect.
16. Ms.HarrisrepeatedldyeclinedMr. Nieman'ssexuaol ffers,but felt nervous, uncomfortablea,ndafraidof Mr. Nieman.As a resultof Mr. Nieman'sactionsM, s. Hanis movedoutofPark Towersin February2009.
17. Mr. Niemanmadenumerousinappropriatseexuacl ommentsaboutMs.Jensen's appearanctehroughoutthecourseofher tenancyi,ncluding,on occasiont,ellingherthatshewas lookinghot or thatherbreastslookedgood.
I 8. In or aboutSeptembe2r007,Ms.Jensesnoughpt ermissiotno havehernieceAshley Huntleystaywith herat ParkTowersto helpcarefor Ms.Jensenfollowingsurgery.Mr. Nieman remarkedthattheanangemenwt asacceptablteo him becauseMs.Huntleywas"goodto look at," or wordsto thateffect. Mr. Niemanmadea similarcommenat boutMs.Huntleyon atleast oneotheroccasion.
I 9. In or aboutJune2008,Ms.Jensensoughto haveClydeJohnsonJ,r.,addedto herlease or otherwisepermittedto staywith herasa roommate.Whenaskedfor hispermissionM, r. Niemanolferedto permitMr. Johnsonto stayin exchangefor oralsex. Ms.Jensenwas extremelyembanassedb,utfearedthatif shedid not submitto therequesst hewouldbeevicted or deniedpermissionto haveMr. Johnsonasa roommate.Ms.JensenwroteMr, Niemana note

Case 6:10-cv-02068 Document 1 Filed 11/10/10 Page 5 of 9
tellinghim thatshewouldgivein to hisrequesta, ndhecameto herunit. After Ms.Jensen performedoralsexonMr. Nieman,Mr. Johnsonwasallowedto stayat ParkTowerswithout beingaddedto theleaseor beingchargedrent.
20. Mr. Nieman'sbehaviorscaredMs.Jensenandmadeherfeeluncomfortablbeeing aroundhim, soMs.Jensenbeganstayingin herunit until Mr. Niemanleft ParkTowersfor the day,usuallyaround4:30p.m. As a resulot f Mr. Nieman'sconducat ndactionsM, s.Jensen movedoutofPark Towersin Novembe2r 008.
21. Whentakingtheactionsallegedin Paragraphls0-20, Mr. Niemanwasactingwithinthe scopeofhis authorityasBuildingManagerandMaintenancSe upervisoart ParkTowerson behalfof J.S.PropertyManagemenLt,.C.,andElders,Inc.
22. Ms.HarrisandMs.Jensentimelyfiledcomplaintsof discriminationwith theUnited StatesDepartmenotf HousingandUrbanDevelopmenptursuantto 42 U.S.C.$ 3610(a).
23. Pursuantot 42U.S.C.$$3610(aa) nd(b),theSecretaroyfrheUnitedStatesDepartment of HousingandUrbanDevelopmenctonductedandcompletedaninvestigationofthe complaintsa, ttemptedconciliationwithoutsuccessa,ndprepareda final investigativereport. Basedupontheinformationgatheredin theinvestigationt,heSecretaryp,ursuantto 42 U.S.C. $ 3610(gXl)d, eterminetdhatreasonabcleauseexistedto believethatillegaldiscriminatory housingpracticeshadoccurred.Thereforeo, n Septembe3r0,2010,theSecretariyssueda Chargeof Discriminationp,ursuantto 42U.S.C.g 3610(gX2)(A)a, gainsdt efendanrNsieman, J.S.PropertyManagemenLt,.C.,andElders,Inc.
24. OnOctober11,2010,Ms. Harriselectedto havetheclaimsasserteidn theChargeof Discriminatiornesolveidn a civil actionpursuantot 42U.S.C.$ 3612(a).

Case 6:10-cv-02068 Document 1 Filed 11/10/10 Page 6 of 9
25. On October12,2010,anAdministrativeLawJudgeissueda Noticeof Electionto Proceedin UnitedStatesFederaDl istrictCourtandterminatedtheadministrativperoceedingon Ms. Harris'sandMs.Jensen'scomplaints.
26. FollowingthisNoticeof Election,theSecretaroyf theUnitedStatesDepartmenotf HousingandUrbanDevelopmenatuthorizedtheAttomeyGeneratlo commencea civil action, pursuantot 42U.S.C.$ 3612(o).
FIRST CLAIM FOR RELIET' 27. Plaintiffre-allegeasndhereinincorporatebsy referencetheallegationsetforthin paragraphls-26, above. 28. By theactionsandstatementrsefenedto in theforegoingparagraphsd,elendanthsave:
a. Refusedto rent,refusedto negotiatefor therentalof, or otherwisemade unavailabloer denieda dwellingbecausoefsex,in violationof42 U.S.C. $ 3604(a);
b. Discriminatedin theterms,conditionso, r privilegesof rentalof a dwelling,or in theprovisionof serviceosr facilitiesin connectiotnherewithb,ecausoefsex,in violationof 42U.S.C.g 360a@);
c. Madestatementwsith respectto therentalof a dwellingthatindicateda preferenceli,mitation,or discriminationbasedon sex,in violationof 42 U.S.C. $ 3604(c)a; nd
d. Coercedi,ntimidatedt,hreatenedo,r interferedwith a personin theexerciseor enjoymenot f, or onaccounot fher havingexercisedor enjoyedt,heirrights grantedor protectedby section804ofthe FairHousingAct, in violationof 42U.S.C6. 3617.

Case 6:10-cv-02068 Document 1 Filed 11/10/10 Page 7 of 9
29. Ms.HanisandMs.Jensenhavesufferedandcontinueto sufferdamageassa resultof defendantsd'iscriminatoryconduct.Eachis an"aggrievedperson"pursuantto 42 U.S.C. $ 3602(i).
30. Thediscriminatoryactionsof defendantwsereintentionalw, illful, andtakenin disregard of thefederallyprotectedrightsof Ms.HarrisandMs.Jensen.
SECONDCLAIM FOR RELIEF 3l. Plaintiffre-allegeasndincorporatebsy referencetheallegationsetforthin paragraphs l-30, above. 32. Defendantsa' ctionsc, onducta, ndstatementsa,sdescribedabove,constitute:
a. A pattemor practiceofresistanceto thefull enjoymenot frights grantedby the FairHousinAg ct,42U.S.C$. $3601-3631in, violatioonf 42U.S.Cg. 3614(a); or
b. A deniatlo a groupofpersonsoftherightsgrantedby theFairHousingAct, 42 U.S.C.$$3601-3631w, hichraisesanissueof generapl ublicimporrancein,
, violationof 42U.S.C.g 3614(a). 33. In additionto EulaHanisandDarleneJenseno,therpersonsmayhavebeeninjuredby defendantsd'iscriminatoryactionsandpracticesasdescribedabove.Suchindividualsarealso "aggrievepdersonsu"ndertheFairHousingAct,42U.S.C.$ 3602(i). 34. Thediscriminatoryactionsof defendantwsereintentionalw, illful, andtakenin disregard of thelederallyprotectedrightsof others.
PRAYER FOR RELIEF WHEREFOREt,he UnitedStatespraysthatthis Courtenteran orderthat:

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l. Declaresthatdefendantsa'ctionsp, olicies,andpracticesa,sallegedherein,violatethe FairHousingAct;
2. Declaresthatdefendanthsaveengagedin a pattemor practiceof discriminationin violationofthe FairHousingAct,or havedeniedrightsguaranteeudndertheFairHousingAct to a groupofpersonsw, hichdenialraisesanissueof generapl ublicimportance;
3. Enjoinsdefendantsth, eiragentse, mployeesa,ndsuccessorasn, dall otherpersonsin activeconcerot r participationwith them,from:
a. Discriminatingonthebasisofsex in anyaspecot f therentalor leaseofa dwelling;
b. Discriminatingin theterms,conditionso, r privilegesof rentalof a dwelling,or in theprovisionof servicesor facilitiesin connectiontherewitho, nthebasisolsex;
c. Statinganypreferenceli,mitation,or discriminationonthebasisof sex; d. Coercingi,ntimidatingt,hreateningo,r interferingwith anypersonin theexercise
or enjoymenot f, or onaccoun6t f theirhavingexercisedor enjoyedt,heirrights undertheFairHousingAct; and e. Failingor refusingto takesuchstepsasmaybenecessartyo preventrecunenceof anydiscriminatoryconductin thefutureandto eliminatet,o theextent practicablet,heeffectsof defendantsu'nlautrl housingpractices; 4. Awardscompensatorayndpunitivedamagesp,ursuantto 42U.S.C.$$3612(oX3), 3613(c)(l)a, nd361a(d)(l)(B)t,o eachidentifiablveictimharmedby defendantdsi'scriminatory practicesa; nd 5. Assesseascivil penaltyagainsdt efendantsb,asedonthesecondclaimfor reliefandto vindicaterhepublicinterespr,ursuantor 42 U.S.C.$ 3614(dXl)(C).

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TheUnitedStatesfurtherpraysfor suchadditionarleliefastheinterestsofjusticemay require.
Respectfully submitted,

DatedN: ovembe1r 0,2010.
STEPHANIEM. ROSE UnitedStatesAttomey
/s/StephanJie. Wriqht STEPHANIEJ. WRIGHT AssistanUt nitedStatesAttomev NorthemDistrictof Iowa 4011stStreeSt .E.,Suite400 CedarRapids,IA 52401 Phone(:319)363-6333 Fax:(319)363-1990 E-mai:l Stephanie.Wright@usdoj.gov

ERICH. HOLDER,JR. AttomeyGeneral
/ s i T h o m a sE . P e r e z THOMAS E. PEREZ AssistanAt ttomeyGeneral Civil RightsDivision
/s/StevenH. Rosenbaum STEVENH. ROSENBAUM Chief,HousingandCivil EnforcemenSt ection Civil RightsDivision
/s/Coll".nM.toOu REBECCAB. BOND DeputyChief DANIELYI Trial Attorney COLLEENMELODY Trial Attorney HousingandCivil EnforcemenStection Civil RightsDivision U.S.Departmenotf Justice 950PennsylvanAiavenueNW NorthwestemBuilding7, thFloor WashingonD, C 20530 Phone(:202)305-0616 Fax:(202)514-I 116 E - m a i:l C o l l e e n . M e l o d y @ u s d o j . g o v

 
 Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 1 of 18

UNITED STATES DISTRICT COURT NORTHERN DlSTlUCT OF IOWA EASTERN DIVISION

UN ITED STATES or AMERICA,

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P la intiff,

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)

v.

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)

M ICHAEL NIEMAN, l.S. PROPERTY

)

MANAGEMENT, L.C., and ELDERS,

)

INC.,

)

)

Defendants.

)

- - - - - -- - - - - - - - - - - - - - - )

Civil No. C I0-2068-LRR-l SS

CONSENT ORDER

l. INTRODUCTION

I.

This action was filed by the ~nitcd States to enfo rCe the prov isions of Till e VITI of the

Civil Rights Act o f 1968 (the Fair Hou sing Act), as amended by the Fair Housing

Amendmen ts of 1988, 42 U.S,C. §§ 3601-363 L The Uni ted Stutes alleges that Michael

N ieman, J.S. Property Mun agement. L.C., and Elders, Inc. (co llectively "Defendants")

engaged in d iscrimination on the bas is of sex in violation of 42 U.S.C. §§ 3604(a), (b).

(c), and 36 17, The Uni ted States alleges that the Defendants' conduct constitutes a

pattern or pructice of d iscr iminut ion on the bas is of sex or a den ial of rights to a group of

pcrsons that ra ises an issue of general public importance, pursuant to 42 U.S.C. § 36 14, in

the rental of dwelling units at Park Towers Apartments in Waterloo, Towa (''Park

Towe rs") .

2. The United States further a lleges that defendants J.8. Property Management, L. C. and

Elders,lnc. arc liable for the di scriminatory conduct of thcir agent and managcr,

Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 2 of 18

defendant Michael N ieman , because the co nduct occurred w ithin the scope of his

employment and/or agency.

3. Specifically, the United SL1tes all eges that the Defendants have cngaged in housing

practi ces that discriminate o n the bas is of sex, including:

u.

Makin g housing unavai lable o n the basis of sex throllglt sexual harassment that

caused fe male tenants to move out;

b. Engaging in quid pro quo sexua l hamssment by conditionin g or offering to

exchange housing benefi ts sllch as rent, cable television, lockout fees, and

penn iss ion to have roo mmates on the prov ision of sexual favors;

c. Di scri mi nating on the basis of sex inc luding severe, pervasive, and unwelcome ·

sexual harassment. Such conduct is alleged to have included , but is not limited

to, commenting on fe lllale tenants' body parts and making other inappropri ate

sexua l remarks, f!laking inapprQpriate sexual gestu res, entering dwelling units of

fe male tenants without pCn11ission or notice, and conditio ning or offering·to

exchnnge tangible housing benefi ts for sexual fav ors;

d. Mak ing statements with respect to the rental of units ot Park Towers indi cating

discrim ination on the basis of sex; and

c.

Interfering with female leno~ts ' exercise and enjoyment of their tenancies th rough

sexual harassment.

4. 111C United States alleges that th rough this conduct the Defendants have:
a. Di scrim inated by refusing to rent, negotiate for the rental of, or otherw ise making

unavai lable or denying dwellings to persons because of sex, in violatio n of

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Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 3 of 18
42 U.S.C. § 3604(a); b. Discriminated against persons in the tenns, conditions, or privileges of remal, or
in the provision of services or facil ities in connection therewith, because of sex, in violation of42 U.S.C. § 3604(b); c. Di scriminated by making, or causing to be made. statements with respect to the rental of a dwelling that indicate a p~fc rcncc. 0. limitation, or discrimination based on sex, in violation of 42 U.S.C. § 3604(c); d. Coerced, intimidated, threatened, or interfered with persons in the exercise or enjoyment of, or on account of the ir having exercised or enjoyed, their rights under Section 804 of lhe Fair Housing Act, in violation of 42 U.S.C. § 3617. 5, None of the Defendants is currently engaged in the residential renlal business. 6. The Defendants dispute and deny the allegations in paragraphs 1 through 4, as well ns in the Uni ted States' complaint. The Defendants deny any and all liability for any and all claims staled in the Un ited States' complaint. 7. Notwithstand ing paragraph 6, the parties have agreed that in order to avo id protracted and cost ly litigation, this controversy shou ld be resolved without a trial. Therefore, the parties consen t to the entry of th is Consent Order. ACCORD INCLY, it is hcrcby AJ)Jl1 DGED, ORDERE D a nd D ECREED :
U. GENERAL INJUNCTION 8. Defcndants, thcir officers; agents, employees, Sllccessors and assigns, and all other
pcrso llS in active concert or pllrliciplltion with them, arc enjoined, with respect to the rental of dwellings, from:

Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 4 of 18
a. Refus ing to rent a dwe lling unit, refusing or fa iling to provide or offer infomlation about a dwelling unit, or otherwise making unavailable or denying a dwelling unit to any person because of sex;
h. Discriminating against any person in the tenns, conditions or privileges of renting 11 dwelling unit, or in the provision ofser,vices or facil ities in connection thcrew ith, because of sex;
c. Making, printing, publishing, or causing to be made, printed, or published any notice, statement, or advertiscmc nt with respect to the rental of a dwelling unit thnt Siotes any prcfcrence,limitation or di scri minati on bascd on sex; or
d. Coerci ng, intimidating, thrcmening or interfering with nny person in the exercise or enjoyment of, or on account of having excrcised or enjoyed, or on account of having aided and eneoumgcd any other person in the exercise or enjoyment of, any right granted by the Fuir !-lous ing Act.
1lI.I'ERMANENT INJUNCTION RELATED TO DEFENDANT MICHAEL NIEMAN 9. Dcfcn~nnt Michael Nieman is hereby permanently eruoined from operating, cons uhing,
managin g, staffi ng, participating in, working in (whether paid or unpaid), or otherwise having any involvement in the management, rentul, or muintellunee of any dwelli ng, as
defined by the Fair Housing Act, 42 U.S.C. § 3602(b).
IV. ADOPT ION AND DISTRIBUTION OF NO:-lDlSC RlIVUNATION POLICY I3Y J.S. P ROI'ERTY MANAGEMENT,L.C., AND ELDERS,INC.
10. Defend ants J.3. Property Management, L.C. and Elders, Inc. shal l take the following ac tions if they re-enter the res idential rental business or engage directly or indirectly
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in the rental of residential rea l property during the scope of this Consent Order: n. Within thirty (30) days aller re-entering the res idential rental business, the
defend ant shall adopt a written Nondiscrimination Policy for its residentia l renta l
properties. The Po licy sha ll , at minimum: (n) identify the entity responsible for the overall manage ment and operation of each rcntol property; (b) make ,cleat' that there is a strict policy aga inst sexual harassment and against other discrimination prohibited by the Fair I-lousing Act. or other appl icab le fai r housing laws and that
of it is the defendant's policy not to discriminate On the basis race, color, sex,
reli gion, national orig in, disability, or familial status'; (c) designate a speciri c person to receive tenant complaints and invite tenants who believe they have experienced or seen sexual harassment or other unlawful discrimination at the rental property to contact this designee directly, ule a complaint with the Department of Hous ing and Urban Deve lopment (" HUD"), or contact the Department of Justice; and (d) provide a mail ing address,.telephone number, and email address whercby such persons can contact the properly-managcm,cnt designee, HUD, and the Depllrtment of Justice. The Nondi scrim ination Poli cy 1111lst be approved in advance of its implementation by the United States. I Thereafter, the defendant shall .have fiftecn ( 15) days to implement the Nondiscrimination r olicy. The United States must approve any changes to the
1 All docllments or Olher communications required by thi s Consent Order to be sent to counsel for the Un ited Smtes shall be sent by commercial (non-USPS) overn ight delivery serv ice Ilddressed as follows, unless otherwise directed by the United States: Chief: Housing and Civil Enrorcement Section, Civil Rights Divis ion, United States Department of Justice, 1800 G Street N.W.; Suite 7002, Washington, D.C. 2000~, Attn : DJ 175-27-33.
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Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 6 of 18

Nondiscrimination Policy made during the scope of this Consent Order.

b. Within fifteen (15) days ofthc United States' approval of the No ndiscrimination

Pol icy, the dcfendant re-entering the resi?entinl rental busincss shall distribute a

copy of the Nondiscrimination Policy and a copy of the HUD booklet, " Fair

Housing; Equ.al Opportunity for A ll," to each household occopying a unit at each

rentn l property and shall provide to counsel for the United Statcs a statement

certifying under penalty ofpcrjury thnt they have distributed the

Nondiscrimination Po li cy and HUD booklet in compliance with thi s paragraph.

Therenfter, the defendant rc-cntcrin g the residential rental business shall provide a copy o f the Nondiscrim.ination Po licy and the HUD booklclto each new -

househo ld occupying any rental dwe llin g at or before the time that the residcnt(s) sign a leuse or otherwise lake possession of the dwelling.

c.

Wi thin thirty (30) days ofre- emerin g thc residentia l rClltal business, the

defendant sha ll post an "Equal Housin g Opportunity" sign in the rcnlnl office

window at the residential property, which sign indicates that nil apartments arc

available for rent on a nondiscriminatolY basis. An Il-inch-by-"J4-inch poster

substanli<llly equivalent to HUD Form 928.1 will satisfy this req uiremcnt. Such

postcr shall be placed in a prominent, well -li t, and easily-readable location.

Copies of H UD Fonn 928.1 arc availab le free of charge by calli ng f-llJD directly

at (800) 669-9777, The fohn is also available at:

htip :llwww.hud.gov/office~/adm/hudc l ips/t.onnsJhud9.cfin ,
v. TRA IN1NG

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II . Defendants lS. Property Management, L.C. lind Elders, Inc. shall take the following Ilctions if thcy re-enter the residential renlal business or engage direc{\y or indirectly in the rental of res idential real property during the scope oflh is Consent Order: B. Withi n fifteen days (15) of the Un ited States' approval of the Nond iscriminat ion Poli cy set fonb in paragraph 10, the de fen dant shall provide n copy of th is Consent Order and the Nondiscrimination Policy to their agent(s) and employee(s) involved in showing, renting, mflnnging, or providing maintenance for un its at each rental property. That defendant shall securc a signed statement from each such agent or employee acknowledging lhat he or she has rece ived und read the . Consent Order and the Nondiscrimination Policy, has had the opportun ity to ha ve questions about the Consent.Order and Nondiscrimi nati on Policy answered , and agrees to abide by the relevant provisions of the Consent Order and Nondi scriminat ion Poli cy. This statement shall be in the for1!l of Append ix A. b. During the terms of th is Consent Order, within fiv e (5) days Idler each ncw agent or cmp loyee becomes involved in showing, renting, managin g, or providing maintenance for units at a renlnl property, the defendant shall provide a copy of this Consent Order arid the Nondiscrim ination Policy to each such agent or employee and secure a signed statem ~nl acknowledging that he or she has received and read the Consent Order and the Nondiscrimination Policy, has had the opportunity to have questions about the Consent Order find Nond iscrimination Policy answered, and agrees to abi de by the relevant prov isions of the Consent Order and Nondiscrimination Policy. This statement shall be in the form of
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Appendix A,

c.

Within sixty (60) days from the Te-entry into the residentinl rental business, th~

de fendant, their managers and officers, and any agent or employee involved in

showing, renting, manag ing. or providing mainten ance for (lny dwelling unit shall

undergo in-person training on the Fair Housing Act al n reasonable location, with

specific emphasis on discrimination on the basis of sex. The tr.aining shall be

conducted by an independent, qualified third party. approved in advance by the

United States, aod any expenses associated with this training sha ll be borne by the

defendant. The defendant shall obtain from U1Ctrainer certifications of

attendance, executed by each individual who received the training, confirm ing

their nttendance, and subm it such certifications to counsel for the United Stales

within tcn (J 0) days oftllc conclusion of the train ing. This contirm ntion sha ll

include the name of lhe course, Ihe name oflhe instrucLOr,thc datc the course was

taken, and the length of thc co ursc andlor time w ithin which the course was

i

compl eted. At a minimum , the training shall consist o fin strucrion on the

requirements of all app licable federal and statc hous ing discrimination laws, with

an cmphas is on sexual harassment, and a question and answer session [or the

purpose of reviewing the foregoing areas. The dcfendnnt shall subm it the name

nnd contact informati on of the proposed trainer 10'counsel for the United States

within !\ycnty (20) days of its re-entry into the residentia l rental business. The

de fendant wi ll provide the trainer with a copy of this Consent Ord~r at least

ten ( 10) days bcfore the training.

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Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 9 of 18
VI. llEl'O\lTING AND DOCUME'IT RETENTION REQUIREMENTS 12. Dcfcndancs lS. Property Management, L.C. and Elders, Inc. shall take the foll owing
actions if they re-en ter the f!!Si dential rental business or engage directly or indirectly
in the rental of residential rcal property during the scope of this Consent Order: a. During the period in which this Cansem Order is in effect, the defendant shull
noti fy counsel for the United Stales in writing wi,thin ten (10) days of receipt of any written or oral complaint against the defendant, or their agents or emp loyees regarding housing discrim ination. Irthe complaint is in writing, the defendan t shall provide n copy of the complaint along wi th the notification. The notification shall include the full detai ls of the complaint, includ ing the complninant's name, address, find telephone number. The defendant shall olso promptly provide th,e United States all info nnation it may request concerning any such complaint and sha ll inform the United States with in fifteen (15) days of tile substance of any reso lution of such complaint. b. On or before the first, second , thi rd, and fourth anniversaries of the entry of this Conscrll Order, and within sixty (60) days of the flfth anniversary of the entry o f the Consent Order, the defendant shall deliver to counsel fo r the United Statcs n report contn ining informotion about any manager, officer, agent, or employee who became involved in showing, renting, managing, or providing maintenance for any dwell ing unit at any of the defendant's rental properties durin g the prev ious year. The report shall contain signed statements in the form of Appe nd ix A from each such manager, ofrieer; agent or employee, as sel forth in parugraph 11.
·9·

Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 10 of 18
c. From thc cxccution of this Consent Order and during the period in which this Consent Q'rder is in eITeet, the defendant sha ll preserve all reco rds related to its residential rentnl business, incl1:lding, but not limited to, availability lists, waitin g li sts, rental app lications, leases, tenant fil es, maintenance logs, and occupancy lists. Upon reasonable notice to counse l for the defendant, representatives of thc United States shall be permitted to inspect and copy all sueh records at any end all reasonabl e times or, upon request by thc United States, the derendant shall provide c9pies o f sllch documents , VII. COMPENSATION OF AGGIUEVED PERSONS
13. The Defendants sha ll pay n totnl of eighty thousand dollars ($80,000) in moneta!), damages to persons whOtn the United States has identified as aggrieved persons. A list of such persons is attached as Append ix B. Within thj rty (30) days of the entry of this Consent Ord er, the Defendants shall send via overnight couri er to counse l ror the United Stutes checks made puynble to each aggrieved person in lhe amount listed in Appendix B, When counsel fo r the United States has received a check from the Defendants payuble to an aggrieved person and a signed release from the aggriev,ed person in the form of Appendix C, counse l fo r the Uniled States shall de li ver the check to thc aggrieve~ person and the original. signed release to counsel for the Defcndants . No aggrieved person shall be paid until she hns ,executed and delivered to counse l fo r the United States the release at Appendix C,
14, No de fendant shall seck to discharge any part oftb c cOll1pclist\tion provided for in paragraph 13 in bankrllptcy.
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Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 11 of 18

VIJI. CIVIL PENALTV

15. Witbin forty-five (45) days afte r the entry of this Consent Order, the Defendants shall

make a payment of fifte en thollsnnd 'dollars ($15,000) to the United States as a civi l

penalty pursuant to 42 U.S.C. § 36 14(d)(l)(C). This payment shall be delivered to

counsel for the United States in the fo rm o f a cashier's check payable to the "United

I

States Treasury. "

I
16. No defendant shall seek 1.0 discharge uny part of the civ il penalty provided for in

I,.

paragraph 15 in bankmptcy.

IX. SCOPE AND DURATION OF CONSENT ORDER 17. T he provisions o f this Consent Order shall apply to all orthe Defendants' officers, agents,

employees, successors and assigns, and all persons acti ng in active concert or

partic ipatio n with them.

18. This Consent Order shal l remain in effect for five (5) years after the date of its entry. 111e

United States may move to extend the duration of the Consent Order in the interests o f

justice.
19. The .Court shall retainj urisdielion for the duration o f thi s Consent Order to enforce its

terms, after which .time the case sha ll be dismissed with prej udice.

20. 'n1C parties shaH endeavor in good fai th to resolve informally any differences regarding
or interpretation and compli ance with thi s Consent Order prior to bringing sucb matters to

the Court for resolutio n.

X. TIME FOR PERFORMANCE. 21. Any time limits for perfonnance imposed QY th is Consent Order may be extended by

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Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 12 of 18
mutual written ngreement ofthc parties. 111C other prov isions of this Consent Order may be modified by written ngrccm enL of the parties or by motion to tbe Court. lithe modificati on is by written agreement of the parties, then such mod ification will be effecti ve upon filing of the written agreement with the Court, nnd shall remai n in effcct for the duration of the Consent Order or unt il such time liS the Cou rt indicates through writlen order that it" has not approved the modification .
Xl. COSTS AND A'nORNEYS' FEES 22. The partics shall bear their own costs and nttorneys' fees associated with this litigation.
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Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 13 of 18
c:-'=--IF---~' 2011
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Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 14 of 18

Dy their signatures below, the parties consent to the entry of this Consent Order:

Doted: September 19, 20 11
For Jllnintiff:

STEP HANlE M. ROSE United Stales Attorncy

. THOMAS E. PEREZ }\ssismnt Attorney General · Civil Rights Division

STEPHANIE J. WRIGHT Assistant United States Attorney Nonhem Di strict of Iowa 401 lsi Strect S.R, Suite 400 Cedar Rnpids, lA 52401 Phone: (3 19) 363-6333 Fax: (3 19) 363-1 990 E-mail: Stcphanic.Wright@usdoj.gov

STEVEN H. ROSENBAUM Chief, Housing and Civil Enforcement Section Civi l Rights Division
D· Deputy Chief DA."lEL H. VI COLLEEN M. MELODY Trial Attorneys Housing and Civi l Enforcement Section Civil Rights Division U.S. Department of Justice 950 PellJlsylvania Avenue NW Northwestern Bnilding, 7th Floor Washington, DC 20530 I'hol1e: (202) 305-0616 Fax: (202) 514-1 116 E-mail : Col1een.MelotiV@usdoj.gov

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Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 15 of 18

For Dcfcnda nts:

~ ,rr.~Q"

't~MITH

<

Swisher & Cohn. p.L.e.

528 W, Fourth'Slreet

Walerloo, IA 50704

Phone: (3 19) 232-6555

Emnil: I s milh@ s~c - !Il w.com

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Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 16 of 18
Append ix A E~{PLOYEE ACKNOWLEDGMENT I acknowledge that on _ __ __ _ _ _ _ _~. 20 1_. I was provided copies of the Consent Order entered by the Court in United States v. Nieman, el al., Civi l Aet'ion No.6: IO-cv-· 2068 (N.D. lown), and the Nond iscrimi nation Pol icy of [J.S. Property Management or ~Idcrs, Inc.]. I have read and understand t.hese documents and have had my questions about these documents answered. I understand my legal respons ibi lit ies and shall comply with those responsibililies .
Sig natu re Print Nnme Job Title Home Address I-Iomc Address Continued Home Tc lephone Numbcr Dn te
. 16·

Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 17 of 18

Ms. Eula Harris Ms. Darlene Jensen Ms. Rulh Allen
Ms. Rnqucl G lass
Ms. Linda N ieman
Ms. Peggy Gelder
Estate o f Ms. Tammy Heim Ms. Debbie Ackermnn Ms. Cindy Neeson
Ms. June Ackley

App endix B
$20,000.00 S20,000.00 $8,000.00 $8 ,000.00 56,500 .00 $5,000.00 $5,000 .00 $2,500.00 S2,500.00 S2,500.00

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Case 6:10-cv-02068-LRR Document 16 Filed 09/22/11 Page 18 of 18

Appendix C

FU LL AND FINAl, Rln,EAS!~ OF CLAIMS

In consideration for the partics' agreement to the terms ofthe COrlsent Order they entered

into in the case of United States v. Nieman, et af. IlS approved by the Un ited States District Court

for the Nort hern District of Iowa, an d in considerat ion for the payment of $

, I,

:-:C~---;-;-::----;-;;-C;;---'--7:-----~' do hereby fully release and forever d ischarge Michuel Nieman, J.S. Property Management, L.C., and Elders, Inc. (hereinafter "De fendants"),

along with their insurers, attorneys, re lated companies, principals, predecessors, successors,

assigns, affi liates, partners, directors, ofticer~, agents, employers, shareho lders, subsidiaries,

emp loyees, former employees, heirs, executors, and administrators ·and any persons acting under their respective direction or control from any and all claims 'set forth, or which ~ou ld have been

set fort h, in the Complaint in this lawsuit that I mlly have had against any oflhem for any of the

Defendants' actions or statements related to those claims throug h the date of the entry of the

Conscnt Order.

Exccutcd this _ _ day of _ _ _ _ _ _ _~, 201_ .

Signature

Prin t Nume

Horne Address

Home Address Conti nued

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 Case: 6:10-cv-2068 As of: 12/24/2011 07:22 PM CST 1 of 3
CLOSED, PROTO
U.S. District Court Northern District of Iowa (Eastern Waterloo) CIVIL DOCKET FOR CASE #: 6:10−cv−02068−LRR

United States of America v. Nieman et al Assigned to: Chief Judge Linda R Reade Referred to: Magistrate Judge Jon S Scoles Cause: 42:405 Fair Housing Act
Plaintiff United States of America

Date Filed: 11/10/2010 Date Terminated: 09/23/2011 Jury Demand: None Nature of Suit: 443 Civil Rights: Accomodations Jurisdiction: U.S. Government Plaintiff
represented by Colleen M Melody US Department of Justice Civil Rights Division 950 Pennsylvania Ave., NW ECF Washington, DC 20530 202 305 0616 Fax: 202 514 1689 Email: Colleen.Melody@usdoj.gov ATTORNEY TO BE NOTICED
Daniel Hupil Yi US Department of Justice − CRT/HCE 950 Pennsylvania Ave., NW ECF Wash, DC 20530 202 514 4701 Fax: 202 514 1116 Email: Daniel.Yi@usdoj.gov ATTORNEY TO BE NOTICED
Rebecca Bond Civil Rights Division Housing and Civil Enforcement Section 950 Pennsylvania Ave NW Northwestern Bldg, 7th Floor Washington, DC 20530 (202) 305−0616 Fax: (202) 514−1116 Email: Rebecca.Bond@usdoj.gov ATTORNEY TO BE NOTICED
Stephanie Johnson Wright US Attorney's Office Northern District of Iowa 401 First Street SE Hach Building, Suite 400 **ECF Cedar Rapids, IA 52401−1825 319 363 6333 Fax: 363 1990 Email: stephanie.wright@usdoj.gov ATTORNEY TO BE NOTICED

V. Defendant Michael Nieman

represented by Lynn M Smith Swisher &Cohrt PLC

Case: 6:10-cv-2068 As of: 12/24/2011 07:22 PM CST 2 of 3

528 West 4th Street PO 1200 **ECF Waterloo, IA 50704 319 232 6555 Fax: 319 232 4835 Email: lsmith@s−c−law.com LEAD ATTORNEY ATTORNEY TO BE NOTICED

Defendant Elders, Inc

represented by Lynn M Smith (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

Defendant JS Property Management, LC

represented by Lynn M Smith (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED

Date Filed 11/10/2010
11/10/2010 11/10/2010
12/20/2010 12/20/2010 12/20/2010 12/21/2010 12/21/2010 01/07/2011 01/10/2011 01/10/2011

# Docket Text
1 COMPLAINT against All Defendants, filed by United States of America. Scheduling Report Deadline 3/23/2011 (Attachments: # 1 Civil Cover Sheet) (Wright, Stephanie) Modified on 11/10/2010 to change text as to deadline (djs). (Entered: 11/10/2010)
Chief Judge Linda R Reade and Magistrate Judge Jon S Scoles added. Clerk checked for conflicts as to parties and attorneys−none found. (djs) (Entered: 11/10/2010)
2 Summons Issued as to All Defendants. ****PLEASE MAKE COPIES OF SUMMONS FOR EACH DEFENDANT AND FILL IN REMAINING INFORMATION**** (Attachments: # 1 New Civil Case Packet) (djs) (Entered: 11/10/2010)
3 WAIVER OF SERVICE Returned Executed by United States of America. Michael Nieman waiver sent on 11/18/2010, answer due 1/17/2011. (Melody, Colleen) (Entered: 12/20/2010)
4 WAIVER OF SERVICE Returned Executed by United States of America. JS Property Management, LC waiver sent on 11/18/2010, answer due 1/17/2011. (Melody, Colleen) (Entered: 12/20/2010)
5 WAIVER OF SERVICE Returned Executed by United States of America. Elders, Inc waiver sent on 11/18/2010, answer due 1/17/2011. (Melody, Colleen) (Entered: 12/20/2010)
Set Deadline: Defendant JS Property Management LC LR 7.1 Disclosure Statement due by 1/1/2011 pursuant to 4 Waiver of Service. (djs) (Entered: 12/21/2010)
Set Deadlines: Defendant Elders, Inc. LR 7.1 Disclosure Statement due by 1/1/2011 pursuant to 5 Waiver of Service. (djs) (Entered: 12/21/2010)
6 ANSWER to Complaint and Affirmative Defenses by Elders, Inc, JS Property Management, LC, Michael Nieman.(Smith, Lynn) (Entered: 01/07/2011)
7 PURSUANT to Local Rule 7.1 Disclosure Statement by Elders, Inc (Smith, Lynn) (Entered: 01/10/2011)
8 PURSUANT to Local Rule 7.1 Disclosure Statement by JS Property Management, LC (Smith, Lynn) (Entered: 01/10/2011)

Case: 6:10-cv-2068 As of: 12/24/2011 07:22 PM CST 3 of 3

03/07/2011
03/08/2011
03/16/2011 03/16/2011 05/18/2011 05/18/2011 09/21/2011 09/22/2011 09/23/2011
09/23/2011

9 SCHEDULING Order and Discovery Plan: Initial Disclosures due date of 03/09/2011 but not filed with the court. Add Parties Deadline due by 5/10/2011. Amended Pleadings due by 5/10/2011. Plaintiffs Expert Witness due by 6/10/2011. Defendants Expert Witnesses due by 8/10/2011. Plaintiffs Rebuttal Experts due by 9/9/2011. Discovery due by 11/10/2011. Motions due by 12/12/2011. Trial Ready Deadline 4/10/2012. Signed by Magistrate Judge Jon S Scoles on 03/07/2011. (skm) (Entered: 03/07/2011)
10 TRIAL Management Order: Witness and exhibit lists exchanged by parties (but not filed) at least 21 days before FPTC. Exhibits marked. Motions in limine 14 days before FPTC. Bench Trial set for 4/16/2012 09:00 AM in 4200 C Street SW, Building B, Courtroom 1 before Chief Judge Linda R Reade. Final Pretrial Conference set for 3/15/2012 04:00 PM in 4200 C Street SW, Building B, Courtroom 1 before Chief Judge Linda R Reade. Proposed Pretrial Order due by 3/10/2012. Signed by Chief Judge Linda R Reade on 03/08/2011. (skm) (Entered: 03/08/2011)
11 MOTION for Protective Order by Plaintiff United States of America (Attachments: # 1 Brief in Support of Unopposed Motion for Entry of Confidentiality Agreement and Protective Order, # 2 Text of Proposed Order) (Melody, Colleen) (Entered: 03/16/2011)
12 ORDER granting 11 Motion for Protective Order (see text of Order for details). Signed by Magistrate Judge Jon S Scoles on 03/16/2011. (skm) (Entered: 03/16/2011)
13 UNRESISTED Motion for Amendment of Scheduling Order and Discovery Plan by Plaintiff United States of America (Attachments: # 1 Text of Proposed Order) (Melody, Colleen) (Entered: 05/18/2011)
14 ORDER denying 13 Joint Motion to Amend the Scheduling Order and Discovery Plan. Signed by Magistrate Judge Jon S Scoles on 05/18/2011. (skm) (Entered: 05/18/2011)
15 UNRESISTED Motion for Entry of Proposed Consent Order by Plaintiff United States of America (Attachments: # 1 Consent Decree Proposed Consent Order) (Melody, Colleen) (Entered: 09/21/2011)
16 CONSENT Order. Signed by Chief Judge Linda R Reade on 9/22/11. (ksy) (Entered: 09/22/2011)
17 ORDER re 16 Consent Decree: The parties agree that the Consent Order shall remain in effect for five (5) years after the date of its entry. The court shall retain jurisdiction for the duration of this Consent Order to enforce its terms, after which time the case shall be dismissed with prejudice. The Clerk of Court is directed to close this case subject to being reopened for any Consent Order violations. Signed by Chief Judge Linda R Reade on 9/23/11. (ksy) (Entered: 09/23/2011)
Set Deadlines: Pursuant to 16 Consent Order and 17 Order: This case shall be dismissed with prejudice five (5) years after the filing of 16 Consent Order. Check Status Deadline due by 9/22/2016. (ksy) (Entered: 09/23/2011)