BALTIMORE – The Maryland Commission on Civil Rights and the Maryland attorney general have announced a major housing discrimination settlement to protect source of income rights.
On the heels of a landmark ruling in State of Maryland Commission on Civil Rights and Tonya Wood v. Cheryl Sawyers (Trustee) and Rachel Wilson, the Maryland Commission on Civil Rights (MCCR) and the Office of the Attorney General’s Civil Rights Division (CRD) have announced another major breakthrough in the fight against housing discrimination.
Following a joint investigation, the Commission and the attorney general’s Civil Rights Division reached a significant settlement with Habitat America, LLC and The Commons of Avalon TH, LLLP, stemming from allegations that tenants who used housing vouchers were subjected to higher rent increases than other tenants at a Frederick, Md., apartment complex.
The investigation, backed by compelling evidence, found that this practice violated Maryland’s fair housing law, which includes strong protections against source of income discrimination.
Under the terms of the settlement, the housing providers have agreed to:
• Reimburse affected households for excess rent paid
• Pay up to $2,500 per household in additional damages
• Pay $105,000 in civil penalties
• Update internal policies and conduct fair housing training for staff
Submit regular reports on rental practices to MCCR and CRD
“This moment is about more than rent. It’s about respect, dignity, and justice,” said Executive Director Cleveland L. Horton II in a statement. “When we allow housing providers to penalize people for using vouchers – many of whom are seniors, single parents, people with disabilities, or workers simply trying to survive – we are endorsing a two-tiered system of access.
“Let me be clear: Maryland law prohibits source of income discrimination,” he said. “And under this administration, that law is not just words on paper – it’s a mandate we intend to enforce boldly, consistently, and unapologetically. We are not just correcting bad behavior. We are setting a new expectation: Equity is not optional. Accountability is not negotiable. And justice is not delayed.”
This announcement reinforces the clear message that discrimination in housing – no matter how subtle, institutional, or normalized – will be met with full legal consequence.
The settlement comes amid rising reports of source of income discrimination across Maryland, especially against voucher holders. This follows a historic court victory last month in MCCR v. Sawyers & Wilson, where the Circuit Court for Montgomery County issued sweeping relief, penalties, and a public injunction.
For more information go to the MCCR website.