WATERLOO — The government has settled a harassment lawsuitagainst the former operators of a downtown apartment building forlow-income residents who are elderly or disabled.
Under the arrangement, former Park Towers officials agreed topay $95,000 in connection with complaints that the on-site managersexually harassed female tenants at the high-rise complex,suggesting they could get services or forgo rent in exchange forsexual favors.
Trial had been set for April 2012 in U.S. District Court inCedar Rapids.
The settlement will be divided with $80,000 going to 10 victims,and the remaining $15,000 will go to the United States governmentas a civil penalty.
“This settlement sends the message that such harassment will notbe tolerated, and that the Civil Rights Division will aggressivelypursue landlords who engage in it,” said Thomas E. Perez, assistantattorney general for the Justice Department’s Civil RightsDivision.
Named as defendants in the lawsuit were Michael Nieman, formeron-site manager; Elders inc., which owned the building; and J.S.Property Management L.C., which managed the property.
Since the lawsuit was filed in November 2010, all of thedefendants have ceased to work in the residential rental business,according to the U.S. Department of Justice. Park Towers, 500Sycamore St., was sold in July.
The consent decree is pending approval by the court, and it alsoprohibits the defendants from engaging in discrimination and barsNieman from returning to work in the rental housing field.
“This order ensures that mr. Nieman will never again be in aposition to harass and mistreat Iowans in need of housing,” saidU.S. Attorney for the Northern District of Iowa Stephanie Rose. “Italso serves as a warning to other landlords that they will be heldaccountable if they engage in or enable others to engage in acts ofsexual harassment against tenants.”
Should J.S. Property or Elders opt to become involved in therental housing business, the organizations must adopt a writtennondiscrimination policy approved in advance by the government anddistribute a HUD fair housing booklet to tenents and hang an equalhousing poster in the office. Staff also have to undergo FairHousing Act training.
Park Towers, which received HUD funding, is an 84-apartmentfacility.