AG Brown sues five apartment complexes and their property management firm for deceiving low-income senior tenants

SEATTLE - Attorney General Nick Brown today filed a complaint in Snohomish County Superior Court against California-based property management company FPI Management and the owners of five apartment complexes in Western Washington, alleging that they engaged in unfair and deceptive practices impacting hundreds of vulnerable senior tenants at the properties.

FPI and the property owners market their apartment complexes as “low-income” units to tenants who are 55 and older.

Over a period of several years, FPI and the property owners failed to disclose to their low-income senior tenants how their rent would be calculated and increased in the future, and misrepresented the quality of their apartment units, the availability and quality of building amenities like pools or fitness areas, and safety at the properties. These are all violations of the Consumer Protection Act.

“Housing is particularly important for older Washingtonians, and it’s hard for them to move once they’ve signed a lease,” Brown said. “It’s egregious to convince vulnerable populations they’re getting quality living when in reality they are stuck with properties in disrepair that also end up costing more than they expected over time.”

The property owners participate in the Low-Income Housing Tax Credit Program (LIHTC), through which they receive valuable tax credits in exchange for setting aside a certain number of apartment units in their buildings for tenants below a certain income threshold. The maximum rental rates under this program are set annually by the U.S. Department of Housing & Urban Development, based on the rise or fall of the area median income (AMI) in the county where the property is located. This is unlike other forms of housing assistance, in which the amount of rent a tenant will pay is based on their own income, and not the income of other people in the area.

FPI and the property owners do not explain or adequately disclose to prospective tenants that their monthly rent will be calculated based on AMI, which is often significantly more than the fixed Social Security or pension incomes many senior LIHTC tenants must live on. As a result, these tenants often end up paying an unsustainable portion of their fixed income as rent, leaving little for other expenses like food, transportation, or medical expenses.

This failure to disclose key details about rent calculations and increases surprised and harmed seniors, who are less likely to move units once they’re in, even if costs become unmanageable, due to the cost and physical demands of moving.

The defendants in this case also misrepresent the quality of their buildings, marketing them as “luxury” and “resort style,” when in reality many tenants move in only to find their units dirty with broken appliances, leaks, mold, worn carpets, torn flooring, and more issues. Despite the promise of quality amenities like pools, fitness centers, and computer rooms, tenants found such amenities either did not exist, were inoperable, or were permanently closed and shut down.

The apartment complexes were also not safe and secure as defendants represented. Many have no one monitoring who is entering, which has led to trespassing and other crimes on site. Their parking lots also experience frequent prowling, theft and vandalism.

The complaint seeks an injunction preventing the defendants from continuing to engage in the unlawful conduct alleged, restitution to impacted tenants, an enhanced civil penalty of $12,500 for each Consumer Protection Act violation due to the vulnerable nature of the seniors who were targeted and impacted, and an award to the state for the costs of pursuing litigation.

Attorney General’s Office staff handling the case include Assistant Attorneys General Anthony Thach and Emily Nelson, Senior Investigator Jennifer Treppa, and Paralegal Logan Young.

A copy of the complaint is available here.

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