Senior Housing Services Inc Settles Litigation Related to San Antonio Seniors Community

Senior Housing Services, Inc. (SHS), a nonprofit corporation, along with the other parties named, has settled a private lawsuit and resolved a Federal investigation into alleged Fair Housing Law violations related to Newforest Estates, an independent living community in San Antonio.

The non-monetary settlement essentially acknowledges that SHS, which acquired Newforest Estates in June 2003, was not involved in whatever policies and practices may have existed under the previous ownership and management, according to Alan Gooding, attorney for SHS.

“We have taken the position throughout this lawsuit that we do things the right way and that despite what may have gone on at Newforest before we came on board, the current ownership and management treat the residents here with the utmost care and respect,” said Bill Layer, regional vice president of SHS.

In the fair housing civil lawsuit, Casaregola, et al. v. Cooperative Retirement Services of America, Inc, d/b/a CRSA Holdings, Inc., Pacific Life Insurance Co., Senior Housing Services, Inc., the plaintiffs contended that the previous management evicted residents who did not fit in with the company’s new marketing strategy aimed at “active seniors” and “independent living.” The suit contended the previous owners discriminated on the basis of disability in the rental of retirement housing.

The plaintiffs sought declaratory and injunctive relief as well as unspecified monetary damages. The suit was filed in the U.S. District Court for the Western District of Texas in San Antonio.

SHS purchased the facility, then known as the Summit at Newforest, a year after the alleged evictions occurred.

The parties and the government have agreed to have the civil lawsuit dismissed and the government investigation concluded as to the current and former owners and management of the community.

SHS owns the community, now called Newforest Estates, and has a management agreement with Certus, LLC, a senior-living management firm. Certus LLC operates seven senior-living communities in Florida and Texas for SHS.

In exchange for a release of claims against them, SHS has agreed to comply with the Fair Housing laws related to disability, to provide additional training to its management and marketing staff, and to ensure that its rental agreements comply with Fair Housing laws going forward. There was no monetary component to the settlement agreement with SHS.

“We are very happy to be able to put this behind us for the sake of our residents, who have been very vocal in support of the community during this period of time,” Layer said. “They take pride in Newforest. We even had several residents offer to serve as witnesses on behalf of the community.”

“We always have tried to comply with both State and Federal law and believe that we have,” he added. “The training and other specific measures agreed to in this resolution were certainly not planned when we bought the community, but we look at it as a chance to ensure that we have established the best practices possible with regard to the Fair Housing laws, which is one more step toward giving our residents the best service available in this region.”

An ongoing $2 million capital improvements project at Newforest Estates includes cosmetic repairs to the property and the addition of an assisted living facility adjacent to the existing retirement community.