SACRAMENTO, Calif. — A statewide fair housing settlement announced by the California Civil Rights Department will require Village at Redondo and Lyon Management Group to end blanket policies that bar people with criminal histories from renting, a practice state officials say violates civil rights law and deepens housing inequality across California.
The settlement follows fair housing testing funded by the department that identified evidence of potential discrimination against rental applicants with criminal histories at a Redondo Beach property in Los Angeles County. Lyon Management Group manages more than two dozen apartment complexes statewide, giving the agreement implications well beyond a single property.
“Everyone deserves to have a place to call home,” said Civil Rights Department Director Kevin Kish. “Automatically rejecting renters because of irrelevant arrests or convictions is incompatible with our state’s civil rights protections. We can all contribute to public safety by making sure everyone has a fair chance at making a living or having a place to live. Housing stability is a critical first step to ensure people can reintegrate into their communities.”
The alleged discrimination emerged from testing conducted in 2024 through the Housing Rights Center, which was sponsored by the Civil Rights Department to identify and address housing discrimination. The testing program examined dozens of housing providers and property management companies across Los Angeles and Ventura counties and found what the department described as ongoing and wide-ranging discriminatory practices.
Among the properties identified was Ocean Club, a 332-unit apartment complex operated by Lyon Management Group and owned by Village at Redondo. According to the department, undercover testers conducting phone inquiries at Ocean Club were allegedly told on multiple occasions that the property required all occupants over the age of 18 to have a clear criminal history, including no felony convictions.
State officials say such policies violate California law. Under the Fair Employment and Housing Act and its implementing regulations, housing providers are prohibited from imposing blanket bans on renting to people who have previously been involved with the criminal legal system. The law requires housing decisions to be individualized and based on legitimate business interests rather than categorical exclusions.
The department noted that blanket bans can disproportionately impact Black and Latino prospective tenants, reinforce historical patterns of housing segregation, and serve as a pretext for intentional discrimination. Regulations implementing the Fair Employment and Housing Act specify that housing providers should not consider convictions that are not directly related to tenancy and must evaluate any relevant conviction based on its nature, severity, and how much time has passed.
As an example, the department said a seven-year-old conviction for a driving-related offense would generally have no rational relationship to a person’s ability to meet financial obligations or comply with rental terms.
Following its initial investigation, the Civil Rights Department filed a director’s complaint against Village at Redondo and Lyon Management Group, alleging ongoing discriminatory practices. A director’s complaint is one mechanism the department uses to address potential civil rights violations affecting groups of people or to resolve broader systemic concerns identified during an investigation.
After the complaint was filed, the department offered the companies an opportunity to resolve the allegations voluntarily through mediation. The parties ultimately reached a settlement, which the companies entered into without admitting liability.
Under the terms of the agreement, Village at Redondo and Lyon Management Group must revise their tenant screening policies at all California properties to prohibit automatic denials based on criminal history. The companies are also required to train all leasing agents statewide on California fair housing protections related to criminal history and to distribute information on those protections to staff involved in leasing decisions.
In addition, the settlement requires the companies to display posters outlining state fair housing protections at all properties and to submit to three years of monitoring by the Civil Rights Department to ensure compliance with the agreement.
The department encouraged anyone who has experienced housing discrimination to contact its complaint process for assistance. It also provides online factsheets and general information on civil rights protections, including fair housing and the use of criminal history in rental decisions.
The settlement was secured by Staff Counsel Nassim Moallem, Associate Chief Counsel Azadeh Hosseinian, and Assistant Chief Counsel Nadia Aziz, and was mediated by attorney mediator Rebecca Schonberg. A copy of the settlement is available through the Civil Rights Department.
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