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Civil rights investigation results in settlement


Updated: 12.25.08
AUSTIN – A Texas Workforce Commission (TWC) Civil Rights Division (CRD) investigation has resulted in a discrimination charge and a $275,000 judgment against a Brazos County landlord in a fair housing discrimination lawsuit.

TWC investigated the complaint against Henry Carter of Bryan, who managed more than 30 Brazos County rental properties. Carter allegedly violated the state and federal Fair Housing Act for sexually harassing female tenants, including two who filed complaints dating back to 2003. Some alleged victims were tenants who participated in the U.S. government’s Housing Choice Program (Section 8), and used rental vouchers designated for low-income families and individuals to live in the Carter properties.

The lawsuit alleged that Carter made unwelcomed and unwanted verbal and physical sexual advances before granting or denying housing benefits in exchange for sexual favors, taking adverse action when female tenants refused sexual advances, and denying rent based on the sex of a potential tenant.

CRD enforces laws to ensure all Texas residents are given equal access to fair housing as federally mandated by the Federal Housing Administration, which prohibits discrimination in the sale or rental of property based on disability, race, color, religion, national origin, sex and familial status. Six fair housing complaints were filed with CRD by female tenants and housing advocate, Austin Tenants’ Council (ATC). CRD found reasonable cause that discriminatory housing practices existed and filed discrimination charges against Carter on behalf of all aggrieved complainants in September 2003.


The lawsuit also alleges defendants violated the Texas Uniform Fraudulent Transfer Act by attempting to transfer real estate holdings to a company operated by his three sons, Urban Quest Properties, in an attempt to hide assets.

On December 8, 2008, the 85th Judicial District Court entered a Consent Decree and order dismissing the lawsuit. As part of the dismissal, Carter and Urban Quest Properties agreed to pay $275,000 to TWC, the female plaintiffs and ATC. TWC’s portion of settlement proceeds will be used to address fair housing initiatives such as education and outreach.

The judgment also permanently prohibits Carter from managing rental property. Any of his sons who remain in management and supervision of residential rental properties must attend fair housing training provided by CRD.

In Fiscal Year 2008, CRD resolved more than 300 cases involving allegations of housing discrimination.



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