A fair housing nonprofit secured upgrades at TN apartments. But federal funding cuts could stall their work.

Seven Middle Tennessee apartment complexes will make their housing units more accessible for people with disabilities. The modifications come after Gross Residential — an Ohio-based company that develops, constructs and manages retail properties — reached a conciliation agreement with two fair housing nonprofits.

Last year, the Tennessee Fair Housing Council, along with the National Fair Housing Alliance, lodged a complaint with the U.S. Department of Housing and Urban Development. It emerged out of a monthslong, multistate investigation, and alleged that Gross Residential had a pattern of noncompliance with the Fair Housing Act’s accessibility standards.

Specifically, it claimed that the design of 13 properties — spanning Alabama, North Carolina, South Carolina and Tennessee — had rendered kitchens, toilets, light switches, mailboxes, common use areas, entrances and parking spaces inaccessible for people with disabilities.

Under the Fair Housing Act, multifamily housing of four or more units must meet specific design requirements to remain accessible.

While Gross Residential denies all allegations, a voluntary settlement was reached with NFHA and TFHC. The agreement sees Gross Residential pay $525,000 in damages and attorney fees, as well as make accessibility changes to the 13 complexes. The properties will undergo an independent inspection to ensure that they meet the standards.

“Searching for a new place to live is stressful for everyone. Imagine finding an apartment you like and realizing you can’t use the kitchen because there’s not enough turning space for your wheelchair,” said Martie Lafferty, TFHC’s executive director, in a statement. “We appreciate Gross Residential’s willingness to work with TFHC and NFHA to identify solutions that ensure people with disabilities can use and enjoy their apartment and the common areas of their housing community.”

In a statement to WPLN News, Gross Residential said they are “committed to continuing to provide quality housing to all residents and prospective residents.”

“Since the complaint was originally filed, we have worked with the agencies through the administrative process and have complied with information requests. We shared design details with NFHA and TFHC for better clarify regarding suite design and access,” a company spokesperson wrote. “Gross has complied, and will continue to comply, with accessibility standards.”

Funding slashed for housing nonprofits

The settlement comes as the Trump administration has begun terminating grants to groups that enforce the Fair Housing Act. The grants are distributed by HUD to organizations that — like TFHC — take complaints, investigate and litigate housing discrimination.

The AP reported that, of the fair housing complaints lodged in the U.S. in 2023, 75% were handled by nonprofit organizations. The rest were largely processed by state and local organizations, while HUD and the U.S. Department on Justice fielded less than 6%. Of the 162 grants funding these groups, roughly half have been flagged for cancellation.

TFHC’s grant does remain active. However, Lafferty says the group is concerned for the future — either that HUD could cancel the existing grant contract early or that it will not review the latest round of applications for new HUD grants.

“Alarmingly, it’s our understanding that HUD has stopped reviewing those applications and does not plan to award any of these new grants,” Lafferty wrote in a statement to WPLN News. “This will have a devastating impact for fair housing work across the country.”

If TFHC does not receive the HUD grant it applied for — or find another source of substantial funding — the group would have to terminate half its staff at the end of May.