Residents of a Brooklyn Center townhome complex have sued their landlord for collecting rent without holding a valid rental license and failing to provide housing that meets city code.
A nonprofit that advocates for housing justice and for people of color also joined the suit against property manager Gaughan Cos. filed Friday in Hennepin County District Court. The suit also claims the Forest Lake-based company retaliated against African American tenants who complained about poor living conditions or applied for rental assistance by not renewing leases, sending moveout notices, and evictions.
The plaintiffs have secured the Housing Justice Center to represent them in the class-action suit, which would include all tenants who currently or have previously lived at Victoria Townhomes within the last six years.
"With this lawsuit, the tenants of Victoria Townhomes seek to put an end to Gaughan's fraudulent and discriminatory rental practices, and to remedy the harm that Gaughan has done to them and the public," the suit reads.
Gaughan had not immediately responded to a message seeking comment.
Brooklyn Center city code requires landlords to hold a license, but Gaughan's rental license for units on the 6700 and 6800 blocks of Grimes Place expired May 31, 2021. The company has a renewal pending, but as of Tuesday has not passed inspection, said City Clerk Barb Suciu.
Last month, the city taped a notice to the complex's office stating, "This property is not licensed for rental."
The suit accuses Gaughan of collecting rent from tenants despite not holding a valid license. It also said Gaughan accepted emergency rental assistance from RentHelpMN on behalf of tenants it told to apply for the pandemic aid, then failed to renew annual leases of tenants who did. A resident who learned about Gaughan's actions and organized tenant opposition was served with a 60-day move-out notice in January and eviction in February, the suit said.
