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City attorney updates council on federal lawsuits that could affect rental markets
Summary
The city attorney briefed the council on two federal lawsuits — a DOJ case alleging rent-fixing via software and an FTC case alleging hidden 'junk' fees — and on a pending challenge related to placement of two offenders; no city action was taken but staff is monitoring.
The city attorney provided a briefing to the Common Council on two federal lawsuits that may affect local renters and property managers.
He said the U.S. Department of Justice has filed a case alleging that certain property-management companies used RealPage software and nonpublic data in ways that facilitated anticompetitive rent-setting. Separately, he said the Federal Trade Commission has sued over allegedly undisclosed and recurring fees charged by some management companies — examples cited in the FTC complaint include valet-trash or package-handling fees.
The city attorney said large property managers named in the suits include Greystar Real Estate Partners (noting the firm manages local properties). He also said the city is filing affidavits in a separate pending state-level challenge regarding placement of two offenders deemed violent under Chapter 980; the affidavits and supplemental filings will be submitted ahead of a Thursday status conference.
The attorney said the district attorney’s office may argue the city lacks standing to intervene in the Chapter 980 litigation; he said the city will pursue other remedies if the court denies intervention, including possibly filing a mandamus action.
Why it matters: The federal suits, if successful, could affect rental pricing and fee structures used by some managers; the Chapter 980 matter concerns local placement of offenders near youth facilities and could lead to further litigation or directives affecting municipal interests.
What happens next: The city attorney said staff will file additional affidavits in the Chapter 980 matter and monitor the federal litigation developments; no council action was required at the meeting.
