The Justice Department announced today that the owners and former property manager of a federally subsidized apartment complex in Albuquerque, New Mexico have agreed to pay $360,000 to resolve a lawsuit alleging that the former property manager sexually harassed female tenants in violation of the Fair Housing Act.
The department’s lawsuit, filed in the U.S. District Court for the District of New Mexico in March 2024, alleges that for more than a decade, property manager Ariel Solis Veleta (Solis) sexually harassed female tenants at St. Anthony Plaza Apartments, a Section 8 Project-Based Rental Assistance property with 160 units in Albuquerque, New Mexico. The suit alleges that Solis’s conduct included making unwelcome sexual comments to female tenants, touching female tenants without their consent, locking female tenants in his office to demand sex acts, and threatening to evict female tenants who did not give in to his sexual demands.
“A home should be a place of refuge, not fear,” said Deputy Assistant Attorney General Kathleen P. Wolfe of the Justice Department’s Civil Rights Division. “The Justice Department will hold property managers and landlords accountable when they target and exploit vulnerable tenants with sexual harassment.”
“Affordable housing should not come at the cost of tenant’s dignity and personal safety,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “When property managers use their power over housing as a weapon to extort sexual favors from tenants, they exploit one fundamental right in order to violate another. This settlement will protect the sanctity of the home and the basic human rights of tenants, and was only possible because of these courageous women who came forward to tell their stories.”
“No low-income tenant should face the threat of being sexually harassed or abused by a property manager or others who control their housing,” said Acting Inspector General Stephen M. Begg of the Department of Housing and Urban Development (HUD). “We are grateful to the tenants who came forward to help put a stop to this violative behavior. This settlement demonstrates that the HUD Office of Inspector General will continue to vigorously investigate landlords and property managers who seek to sexually exploit their vulnerable tenants.”
The department’s lawsuit also names as defendants the owners and operators of St. Anthony Plaza Apartments, PacifiCap Properties Group LLC, St. Anthony Limited Partnership, PacifiCap Holdings XXXVIII LLC, and PacifiCap Management, Inc. The lawsuit alleges that these defendants are vicariously liable for the sexual harassment of their agent, Solis. The Department of Housing and Urban Development’s Office of Inspector General participated in the investigation that uncovered the evidence leading to the lawsuit.
Under the consent decree, which still must be approved by the U.S. District Court for the District of New Mexico, the defendants must pay $350,000 to tenants harmed by Solis’s harassment and a $10,000 civil penalty to the United States. The consent decree permanently bars Solis from contacting tenants harmed by his harassment, permanently bars Solis from managing residential rental properties, and mandates training and the adoption of policies and procedures to prevent future discrimination at residential rental properties owned or managed by defendants.
Individuals who believe they may have been victims of sexual harassment by Ariel Solis or at St. Anthony Plaza Apartments may email Solis.Investigation@usdoj.gov or call the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291.
If you are a victim of sexual harassment by another landlord or property manager or have suffered other forms of housing discrimination, call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at fairhousing@usdoj.gov, or submit a report online. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This settlement is part of the Justice Department’s Sexual Harassment in Housing Initiative, led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative, which the Department launched in October 2017, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 48 lawsuits alleging sexual harassment in housing and recovered nearly $17.5 million for victims of such harassment.