Organizational Standing in Fair Housing Cases – Background Michael P. Seng Professor The John Marshall Law School Chicago, Illinois I. The Constitutional Minimum for Article III Courts Warth v. Selden, 422 U.S. 490 (1975), various organizations and individual residents denied standing to sue municipality on the claim that the town’s zoning ordinance, on its face and as applied, effectively excluded persons of low and moderate income from living in the town in violation of their First, Ninth, and Fourteenth Amendment rights and in violation of 42 U.S.C. §§ 1981, 1982, and 1983. Organizations cannot base their injury on the mere abstract interest in seeing that the law is enforced. O'Shea v Littleton, 414 U.S. 488 (1974); Valley Forge Christian College v Americans United, 454 U.S. 464 (1982); Lujan v Defenders of Wildlife, 112 S. Ct. 2130 (1992). Wright v. Allen, 468 U.S. 737 (1984), parents of black public school children denied standing to sue the Internal Revenue Service on the claim that the IRS had not adopted sufficient standards and procedures to fulfill its obligation to deny taxexempt status to racially discriminatory private schools and thereby was interfering with the ability of their children to receive an education in desegregated public schools. II. The Language of the Fair Housing Act 42 U.S.C. § 3602 (i) states that an “aggrieved persons’ includes any person who – (1) claims to have been injured by a discriminatory housing practice; or (2) believes that such person will be injured by a discriminatory housing practice that is about to occur. III. Supreme Court Cases Interpreting Standing under the Fair Housing Act Trafficante v. Metropolitan Life Insurance Co., 409 U.S. 205 (1988), two tenants, one of whom was white, held to have standing to allege that an apartment complex discriminated against non-whites in violation of the Fair Housing Act because they were denied the benefits of living in an integrated community, missed business and professional advantages that would have accrued to them if they had lived with members of minority groups, and had suffered embarrassment and economic damage by being stigmatized as residents of a “white” ghetto. Gladstone Realtors v. Village of Bellwood, 441 U.S. 91 (1979), village and five residents of the village, one black and four white, and a black resident of a 1 neighboring town found to have standing against real estate brokers who were engaging in racial steering that created and maintained segregated neighborhoods in the village. The individual plaintiffs were fair housing testers and were not themselves seeking to purchase homes. Havens Reality Corp. v. Coleman, 455 U.S. 363 (1982), testers and a fair housing organization found to have standing. The testers claimed that they were given false information when they inquired about the availability of housing. The fair housing organization claimed that it had diverted resources to fight housing discrimination and that its mission to secure equal access to housing was frustrated by a real estate broker whose steering practices deprived members of the association the benefits of living in an integrated community. IV. Standing for Administrative Investigations Seng, Standing to Complain in Fair Housing Administrative Investigations, FH/FL Commentary (2009), http://www.jmls.edu/fairhousingcenter/commentary.shtml, Article III standing requirements are not applicable to administrative proceedings. Congress intended that the enforcement of the Fair Housing Act to be as broad as the Constitution allows; therefore, HUD may investigate complaints without determining whether the person filing the complaint meets all the requirements of Article III standing. The Secretary has standing to issue a charge if there is reasonable cause to believe that a fair housing practice has occurred. 42 U.S.C. § 3610(g)(2)(A). V. Compensatory Damages The question of recovery for compensatory damages is separate from whether an organization has standing to file a complaint. Standing requires a complainant to allege or plead an injury; to recover compensatory damages an organization must prove injury through competent evidence. See Chicago v. Matchmaker Real Estate, 982 F.2d 1086 (7th Cir. 1992), cert. denied, 113 S.Ct. 2961 (1993); United States v. Balistrieri, 981 F.2d 916 (7th Cir. 2992); Spann v. Colonial Village, Inc., 899 F.2d 24 (D.C.Cir. 1990). 2