This developer wants homebuyers who already live in Davis. Racial discrimination, suit alleges

A major housing project planned for seniors in Davis is “blatantly discriminatory” against minorities because it favors buyers who live in or have ties to the mostly white town, a federal lawsuit contends.

The proposed West Davis Active Adult Community, which advertises its mission as “Taking Care of Our Own,” will “perpetuate racial imbalance” in the city and violates the Federal Fair Housing Act, according to the suit filed Monday in U.S. District Court in Sacramento. Ninety percent of homes in the development are scheduled to be set aside for people who are Davis residents, close relatives of a resident or have ties to Davis schools, including UC Davis.

Civil rights attorney Mark Merin filed the lawsuit on behalf of Samuel Ignacio, a senior who is of Filipino and Hispanic heritage, and “all other similarly situated racial and ethnic minorities” who are interested in purchasing homes in the community. The suit names the city, the land owners and developer J. David Taormino as defendants.

The Davis City Council has approved an agreement with landowners and developers for the project, which spans 74 acres and includes 505 housing units, walking paths, a health club and a restaurant. But because the project would convert agricultural land to urban use, the development must be approved by voters in November.

Estimated prices for the homes range from $300,000 to $700,000, according to the project’s website, and houses could be available as early as 2020.

Merin said he is unaware of any other developments with buyer exclusions like the ones in the proposed West Davis Active Adult Community. Because Davis residents are overwhelmingly white, while communities surrounding the city are more ethnically diverse, the restrictions would contribute to racial imbalance and discriminate against members of minority groups, he said.

Taormino, the developer, agreed that the project is “somewhat unique,” and said it is specifically designed to address the city’s dearth of housing stock. Designed for people 55 and older, it would free up more homes in the city for young families - a pressing need in Davis, he said.

“I don’t know the plaintiff,” Taormino said. “He certainly hasn’t spoken to me about the project, or added his name to the list of 700 people who are interested in it. But we’re very satisfied that we are not discriminating against anyone. We are following the city’s mandate to focus on projects that meet the internal needs of the city of Davis.”

The project’s marketing materials say the development “is designed to draw residents from within Davis, which would free up larger homes for young families.”

“With college students and senior populations increasing in Davis, young families often are priced out of the housing market,” the materials say. “Meanwhile, many empty nesters in town have homes larger than they want or need but there are few alternatives for smaller, single-story homes in Davis.”

Taorino said buyer restrictions for the proposed project are merely “preferences,” which in general are legal. “Preferences are given in all kinds of situations,” he said, citing college admissions as an example. “They’re fine, as long as the intent is not to discriminate, or unless discrimination occurs by accident.”

Davis assistant city attorney Ethan Walsh said developers are still refining criteria for buyers of units in the development, and that the city will weigh in on whether the restrictions are lawful.

“I think that they can put forward a program that is consistent with fair housing laws,” Walsh said.

Taormino agreed.

“We’ll defend any lawsuit,” he said. “But if it turns out we need to make a change we’ll do it.”

Merin’s suit argues that Davis has a long history of “restrictive covenants” and other practices that have served to shut out members of minority groups. For example, “redlining,” or the practice declining to write mortgages for purchase of property in certain areas, has in the past prevented minorities from getting financing to buy property, it reads.

“The combined effects of these practices was to perpetuate the demographics of Davis as a largely white community,” the lawsuit says.

The most recent census figures show that Davis is about 56 percent white. Nearby Woodland, by contrast, is 42 percent white. Hispanics represent 14 percent of residents in Davis and about 46 percent of Woodland’s population. The comparisons are even more stark when considering people age 55 and older, the lawsuit asserts.

The plaintiff is asking the court for a declaration that the project’s selection criteria for homeowners violates the Fair Housing Act, and for an injunction to halt marketing of homes in the proposed development that are “subject to a residency restriction,” as well as compensatory damages and attorney fees.

Merin said that he and other opponents of the project plan to attend the Davis City Council meeting on Tuesday evening to “implore the city to avoid this costly litigation, withdraw its support for the project and move Davis toward becoming a more inclusive, representative community.”

Bee staff writer Michael Finch II contributed to this report.

This story was originally published September 25, 2018 at 3:30 AM.