Attorney General Alleges Discriminatory Practices
The District of Columbia has filed a lawsuit against Red Oak Capital Holdings, accusing the real estate investment firm of engaging in housing discrimination and contributing to the reduction of rent-controlled housing in the city.
Attorney General Brian Schwalb announced the legal action, alleging that Red Oak discriminated against tenants without housing vouchers and participated in practices that undermined the city’s rent-control protections.
Alleged Scheme Involving Developers
According to the Office of the Attorney General, Red Oak worked alongside developer Sam Razjooyan, who has previously faced scrutiny over property conditions. The complaint claims the firm provided inflated loans to developers, including Razjooyan, under arrangements that allegedly allowed them to sidestep rent-control requirements.
The lawsuit further alleges that Red Oak financed projects premised on renting units to tenants with housing vouchers, enabling landlords to charge rents above controlled rates.
Prosecutors also claim more than 300 rent-controlled apartments across Wards 4, 5, 6, 7 and 8 were effectively closed off to certain tenants through discriminatory leasing practices.
Impact on Affordable Housing Supply
“Red Oak and the developers it finances have worsened the District’s affordable housing crisis while profiting by flouting our laws,” Schwalb said in a statement.
The complaint names several properties tied to the alleged practices, including Jennifer Apartments on Tuckerman Street NW, The Wiltshire Apartments on E Capitol Street SE, buildings on Hawaii Avenue NE, Minnesota Commons on Minnesota Avenue NE and Wilmington Place SE.
The Attorney General’s office argues that these actions reduced access to affordable housing options and harmed tenants in neighborhoods already facing housing pressure.
Red Oak Capital Holdings has not publicly responded to the allegations at the time of the filing. The case will proceed through the District’s legal system, where the claims will be evaluated.
