Kenneth M. Sorenson, Acting United States Attorney for the District of Hawaii, has announced a settlement involving a $162,500 compensation to resolve allegations of discrimination under the Fair Housing Act (FHA). The lawsuit was filed against Kailua Village Condominium Association, its managing agent Associa Hawaii, the sellers of a condominium unit at Kailua Village, and the sellers' realtor.

The case revolved around claims that these parties discriminated against an individual with paraplegia who sought to purchase a condominium at Kailua Village in Kailua-Kona, Hawaii, in October 2021. During the escrow period, while living in the unit under an early occupancy agreement, the Complainant requested modifications such as an accessible parking space, a temporary ramp for entry into his unit, and installation of an accessible toilet at his own expense. These requests were allegedly denied unlawfully by the defendants. The Complaint also included allegations of verbal harassment which reportedly led to the Complainant withdrawing from the purchase.

The FHA prohibits discrimination based on disability in housing sales or rentals and requires reasonable accommodations to provide equal housing opportunities for persons with disabilities. Following a complaint by the Complainant to the U.S. Department of Housing and Urban Development (HUD), an investigation found reasonable cause suggesting discriminatory practices had occurred. This led to federal court proceedings initiated by the Department of Justice on behalf of the Complainant.

Resolution came through two Consent Decrees approved by a federal district court in October 2024 and January 2025. Under these decrees, defendants agreed to pay $162,500 in damages and undergo FHA training. Additionally, Kailua Village must implement a policy approved by the Department of Justice regarding reasonable accommodation and modification. For two years following this resolution, both Kailua Village and Associa Hawaii are subject to recordkeeping and reporting requirements to ensure compliance with FHA standards.

Assistant U.S. Attorneys Sydney Spector and Dana Barbata managed litigation efforts alongside the Housing and Civil Enforcement Section of the Civil Rights Division within the Department of Justice.

Those suspecting they have experienced housing discrimination can report it online at www.civilrights.justice.gov or contact HUD at 1-800-669-9777 or www.hud.gov.