Department of Justice Files Fair Housing Act Suit Against City of New Berlin
On Thursday, the United States Department of Justice (DOJ) filed a complaint against the City of New Berlin. The complaint arises out of a series of events that led to the City’s denial of a “workforce” housing development proposal made by MSP Real Estate, Inc. (MSP). The DOJ alleges that the City of New Berlin ultimately denied the proposal on the basis of racial discrimination, in violation of Section VIII of the Fair Housing Act.
According to the complaint (which can be viewed here), on March 10, 2010, MSP submitted a development application to construct 180 units of affordable housing in what is known as New Berlin’s “City Center.” The proposal stated that the development would include 100 elderly units and 80 workforce housing units. The development was intended to be financed in part by the Low-Income Housing Tax Credit program, a program that allows a developer to sell tax credits to investors in exchange for the promise that the developer will rent the apartments for below-market rates to tenants who qualify. For this specific development, MSP was going to rent to individuals who made 40 to 60 percent of the median household income in New Berlin. In New Berlin, the median income as of 2000 was approximately $70,000, which means the proposed development would rent to individuals who made $28,000 to $42,000 a year.


This week, the US Supreme Court handed down a decision in Turner v. Rogers, a case involving a non-custodial parent who was jailed for nonpayment of child support. Failure to pay child support is a violation of a court order to pay, and is thus handled as a civil contempt of court case. A finding of civil contempt in these cases is predicated on nonpayment when the defendant is financially capable of paying, and a defendant can always avoid jail time by either paying the amount owed, or by showing that he is incapable of paying. Turner had been ordered to pay $51.73 per week for the support of his child and had been sentenced to jail time on several previous occasions for failure to pay. He was not represented by counsel at the hearing where he received a 12-month sentence, which he served in its entirety. At the hearing in question, the judge sentenced Turner without making an express finding that Turner was financially capable of paying the support owed. On appeal, Turner argued that the US Constitution entitled him to counsel at his hearing because, although the contempt proceeding is civil in nature, the potential for incarceration triggered a Due Process Clause-based right to be represented. Although Supreme Court cases have consistently found that the Sixth Amendment right to counsel in criminal cases does not apply to civil cases (not even civil contempt cases), there was a split in the circuits over whether a defendant has a right to counsel under the Due Process clause in civil contempt proceedings enforcing child support orders.