New Berlin and MSP Real Estate settle Fair Housing Act lawsuit

MSP Real Estate Inc. has reached a settlement agreement with the City of New Berlin, that will allow the company to build 102 condominiums at 3535, 3601 and 3655 Deer Creek Parkway, in the City Center area.

MSP filed a lawsuit against New Berlin in March, alleging violations of the federal Fair Housing Act. In June, the federal government filed its own lawsuit against the city, asserting that the city had violated the Fair Housing Act by preventing MSP from building its development.
Under the settlement agreement, MSP can build the condominium development that is within the current zoning on the proposed parcel, under zoning permits issued by city officials in 2004.

The condominiums will be built using WHEDA tax credits. Therefore, 90 of the 102 units will be rented to qualified tenants who will have to meet the moderate income standards outlined in section 42 of the Internal Revenue Code, a program intended to make affordable housing available for working people. The remaining units will be rented at market rate with no income requirements.

“Although the City of New Berlin attempted to thwart this development for various reasons, many of which were blatantly illegal, we are very pleased that they’ve decided to do the right thing,” said MSP president Milo Pinkerton. “Today we’re seeing property owners’ rights protected as a result of an effective legal system. We are particularly pleased that the government stood at our side in vindicating the fair housing laws. I’m confident this development will be a positive addition to the City.”

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