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HUD settles fair-housing charges against real estate developers

Entities accused of family discrimination

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The U.S. Department of Housing and Urban Development Friday said it has settled a Secretary-initiated investigation into the City of Falls Church, Va., Waterford Development LLC, Waterford Development-Falls Church LLC, and Nova-Habitat Inc., for alleged discrimination against families with children, a violation of the Fair Housing Act. Based on information received in January 2004, HUD began an investigation into the development of The Broadway, a high-rise building with 80 luxury condominiums in Falls Church. To have the property rezoned for the construction of condominiums, the developers proposed a term sheet that calculated school-impact contributions based on the number of children who would move into the property instead of on to the number units developed. The City of Falls Church initially approved of this arrangement. Because of concerns regarding the arrangement, HUD commenced a Secretary-initiated investigation against the developers of the property and Falls Church. The ...