Judge rules DC can be held liable for shoddy housing purchased through government programs

WASHINGTON — In a major victory for homebuyers, a DC Court of Appeals judge ruled that the District can be held liable for substandard housing purchased through government assistance programs.

The decision comes after six Black female low-to-moderate income first-time homebuyers sued developers and the city after facing unsafe living conditions in the new condos they purchased in southeast DC through the District's Housing Purchase Assistance Program.

"I went from homeless to homeownership, and at this point I feel hopeless and homeless again,” Robin McKinney said in 2021. “I'm afraid every time I go into my house, I feel preyed on, betrayed."

This Court of Appeals ruling reverses the lower court's decision to dismiss claims filed under the District of Columbia Consumer Protection Procedures Act (CPPA).

Homebuyers like McKinney purchased homes in 2017 through the DC government that the lawsuit says were promised to be affordable and habitable housing.

Shortly after moving in to the brand new homes, the six women said they started to notice foundational cracks, sewage odors, mold, leaks, and electrical issues, all of which rendered their homes uninhabitable.

The homeowners pleaded for help with repairs from contractors and the District, but the issues continued without much assistance, they said.

Then, the general contractors, Stanton View Dev., LLP and RiverEast at Anacostia, LLP -- which received approval of the project and over $6 million from the District -- later filed for bankruptcy.

“Once upon a time this did feel like home, but now it just feels like a place that I'm kind of stuck in,” Jaztina Somerville said. 

That's when they turned to filing a lawsuit in 2020.

On September 12, 2024, the D.C. Court of Appeals issued a ruling that reversed and remanded the dismissal of the CPPA claim, which re-opens the door for the plaintiffs to pursue what they call "unfair and deceptive practices" claims alleged against the District.

The plaintiffs' lawyers with May Jung LLP said this decision is unprecedented in now allowing government entities to be held responsible under consumer protection laws.

The Court of Appeals held that the District is a "merchant" under the CPPA, which allows claims for unfair and deceptive practices to proceed against the government for its role in facilitating the sale of uninhabitable housing.

“This decision affirms the principle that nobody is above the law, including government entities, especially when consumers are harmed in such egregious ways related to their homes,” said Je Yon Jung, lead counsel for the plaintiffs. “Our clients did everything that the District required of them to participate in the American dream of homeownership. Instead, they have been forced to spend years in a house of horrors and nightmares fighting for accountability and justice."

Je Yon Jung went on to say that none of the subcontractors or individuals have taken accountability for these housing issues.

The case now returns to the trial court before Judge Yvonne Williams, where it will be consolidated with other cases involving the subcontractors and individual business owners.