PROVIDENCE, R.I. (WPRI) — Rhode Island Attorney General Peter Neronha is suing a national real estate management corporation for illegally charging application fees and discriminating against prospective renters with disabilities.

Neronha accused A.R. Building Company (ARBC), which has properties in Cumberland, East Providence, North Kingstown and North Smithfield, of violating Rhode Island's Unfair and Deceptive Trade Practices Act.

"It's news to no one that we are in the midst of a severe housing crisis in Rhode Island, and those who implement illegal barriers to finding a home must be held accountable," Neronha said. "We must prioritize making it easier, not harder, for people to obtain safe, affordable housing."

Excessive application and screening fees

Neronha wrote in his complaint that ARBC demanded its prospective tenants pay a $250 administrative fee plus a screening fee. This is in direct violation of a newly enacted state law, according to Neronha, which ensures that prospective tenants can apply to an unlimited number of listings, as well as receive a background check and credit report, for a one-time payment of $5 every 90 days.

"By requiring application, processing and screening fees in its rental application, ARBC
has misled prospective tenants about their right to submit their own official state criminal background check and credit report," Neronha explained in the complaint. "ARBC's business practices are unfair and deceptive and significantly harm Rhode Island residents by charging illegal fees and interfering with the rental market."

In the complaint, Neronha noted that one prospective tenant submitted two applications for ARBC's North Smithfield property earlier this year and was charged $250 both times, plus a $30 screening fee.

"Instead of permitting her to use the screening documents from her first application for her second application, [ARBC] told her that she had to pay new fees," Neronha said. "[ARBC] told her that the fees could not be waived and that she was 'starting over completely.'"

Neronha said ARBC never explained to her what the fees were for, only describing them as application fees.

Discriminatory application process

ARBC has also been accused of violating the Fair Housing Practices Act by subjecting prospective tenants with disabilities to a more arduous application process.

In the complaint, Neronha notes that ARBC's online application process has "made written inquiry concerning the disability and need for a service or support animal."

If a prospective tenant notes the need for accommodations, Neronha said ARBC then instructs them to stop filling the online application out and contact the leasing office.

Neronha said the applicants are also redirected to a nine-page accommodation request that must be filled out and reviewed before an apartment can be secured.

Through the lawsuit, Neronha is seeking civil penalties and injunctive relief, including requiring ARBC to stop charging excessive fees and to refund the prospective tenants that paid them. Neronha is also demanding ARBC update its online application process so it is compliant with state law and does not discriminate against those with disabilities.

Anyone who has or may have fallen victim to unfair or discriminatory housing practices can contact Neronha's office by calling (401) 274-4400 or filing an online complaint.

12 News has attempted to reach out to ARBC regarding the lawsuit but has not heard back.