Are student-only rentals on their way out in Evanston?

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Updated: February 16, 2012 3:10PM

A firm that owns and manages an apartment building near Northwestern University in Evanston must drop its “students-only” requirement and open up rentals to families under a settlement reached in federal court.

Interfaith Housing Center of the Northern Suburbs filed suit in U.S. District Court against Bernsen Management, contending the firm discriminated against families when showing three-bedroom apartments in a building at 1905 Sherman Ave. in Evanston. The firm owns and manages the Willard Apartments, a multi-unit building at 1901-1907 Sherman Ave.

The firm denied the allegations and the settlement was reached without an admission of liability.

However, in court documents, the firm acknowledged the building “is designated housing for Northwestern University students.”

Under the agreement, Bernsen is prohibited from restricting rentals to Northwestern students or advertising its buildings as student rentals, according to Interfaith Housing Center, which monitors fair housing compliance in the northern suburbs.

“With this settlement, the message to Evanston landlords is loud and clear: This town cannot tolerate two private rental markets, one for students and one for families,” said Gail Schechter, executive director of the Interfaith Housing Center. “It is in violation of the federal Fair Housing Act.”

A statement from Interfaith said the housing agency has received reports that families looking for apartments are routinely steered away from downtown, which is close to shopping and public transit.

According to the suit, Interfaith received a complaint in March of 2010 from a resident at 1905 Sherman, who said the owner and manager refused to allow the rental or sublease of units to anyone who was not an NU student. Interfaith launched an investigation and in January of 2011, sent three fair housing testers posing as apartment seekers to look at three-bedroom units in the building.

According to the suit, the first tester, a female, expressed interest in renting an apartment for herself and two roommates, and was shown two units in the building. She was reportedly told that it was a nice building and it was usually “pretty quiet”.

The next day, a second female tester contacted Bernsen Management about an apartment and was asked if she was a student at Northwestern. She replied that her husband would be starting Northwestern in the fall. Bernsen allegedly informed the woman the building was not suitable for families and if she had a family, she would be unhappy there.

On the third day, a male tester contacted Bernsen Management and represented himself as the husband of the woman who’d spoken to Bernsen the day before. The “husband” said he was interested in the three-bedroom apartment and would be starting Northwestern in the fall. When he tried to schedule an appointment, the manager asked if he had a family, and was told the couple had a five-year-old daughter. The manager said he wouldn’t be happy and the building was designed for students, not families.

In the suit, Interfaith said Bernsen Management used a lease addendum restricting the sublease of units to no more than three students and they must be students at Northwestern.

Interfaith contended the addendum expressed an unlawful preference based on family status, and had the effect of discriminating against children.