UNITED STATES V. STARRETT CITY ASSOCIATES
840 F.2d 1096 (1988)
NATURE OF THE CASE: This was an appeal from a grant of summary judgment and a permanent
injunction in a housing discrimination case.
FACTS: Starret City Associates (D) owned a housing development. State agencies had made
substantial mortgage loans to D. D had racial quotas of 64% white, 22% black, and 8%
Hispanic. D claimed these quotas were necessary to prevent the loss of white tenants, thus
transforming the development into a minority complex. When vacancies occurred, applicants of
race similar to the departing tenant were chosen and offered the apartments. Blacks had to
wait longer than whites to get apartments. A group of black applicants brought an action
against D alleging that D's tenanting procedures violated federal and state law by
discriminating against them on the basis of race. The parties stipulated to a settlement. P
commenced the present action to resolve the legality of D's policy and practice of limiting
the number of apartments available to minorities in order to maintain a prescribed degree of
racial balance. The United States (P) claimed that this was discriminatory, and violated the
Fair Housing Act (FHA). D claimed that these quotas were for the benefit of the state and
for the maintenance of an integrated community. P sued D under Title VIII of the Civil
Rights Act of 1968. The district court found that apartment opportunities for blacks and
Hispanics were far fewer than would be expected if race and national origin were not
considered, that the white flight argument of D was undercut by expert testimony and the
lack of difficulty that D had in finding 35 more apartments for blacks. The district court
granted a summary judgment for P and permanently enjoined D from discriminating. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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