Judge refuses to dismiss lawsuit by low-income residents of Concierge Apartments in Richfield

A struggle over the fate of low-income residents at a Richfield apartment complex will continue, after a federal judge refused to dismiss a lawsuit they brought alleging violations of fair housing laws.

In a decision issued Tuesday, U.S. District Judge Ann Montgomery ruled that the residents had offered valid reasons for keeping their suit alive.

The defendants, the owners of the Concierge Apartments, had asked for the case to be dismissed.

"The decision was particularly significant because the defendants were basically arguing that you can't have a fair housing lawsuit about this kind of thing," said Jack Cann, an attorney representing the residents as well as HOME Line, a housing advocacy organization.

"It certainly has implications for this whole trend we've been seeing of investors buying up Class B and C buildings, putting in a few things like granite countertops and raising the rents dramatically," Cann said.

The Concierge, formerly known as the Crossroads at Penn, is one of the largest apartment buildings in the state. More than 2,200 people live in its 698 units, many of them disabled or low-income members of ethnic minorities.

Investors bought the complex last year by investors and immediately began upgrading the property and raising rents by about 25 percent.

It's a story that has played out repeatedly in the Twin Cities suburbs over the past few years, as investors see opportunities to upgrade older apartment buildings close to the urban core, where many young renters prefer to live.

The lawsuit alleges that the upgrades and higher rents could have a "disparate impact" on "protected classes" under state and federal fair housing laws.

The attorney representing the Concierge said he's disappointed by the decision, but added that "it's early in the game."

"We're ultimately confident that our defense is going to carry the day for us," said Bradley Lindeman. "We view the case as essentially an effort to engage in price control.

"And when the merits of the case are decided, we don't think the plaintiffs will be able to substitute their views on proper rents for the judgment of the owners."

John Reinan • 612-673-7402