News Summary
In April 2025, Rhode Island Attorney General Peter F. Neronha disclosed a settlement of $213,000 with A.R. Building Company, Inc. for deceptive practices concerning illegal application fees charged to consumers. The settlement includes restitution to affected tenants and reflects a broader commitment to enforce housing laws amid the ongoing housing crisis. ARBC is required to cease its unlawful practices and inform tenants of their rights, particularly regarding screening documents and support for applicants with disabilities.
Rhode Island – In mid-April 2025, Rhode Island Attorney General Peter F. Neronha announced a resolution to a deceptive practices case against A.R. Building Company, Inc. (ARBC), culminating in a settlement of $213,000. The settlement aims to address wrongful practices related to application fees imposed on prospective tenants.
The settlement amount includes $98,250 designated for restitution to consumers who were charged illegal application fees, along with $114,750 allocated to the state. The case against ARBC was filed under the Rhode Island’s Deceptive Trade Practices Act, which enforces consumer protection laws against unfair business practices.
The Attorney General’s office alleged that ARBC violated state law by improperly collecting application fees from potential tenants. Further scrutiny revealed that ARBC did not offer a means for applicants to submit their own screening documents, which is mandated by legal standards. Additionally, the company failed to provide copies of screening documents to tenants who had paid for them.
Compounding these violations, ARBC also subjected applicants with disabilities to a more cumbersome application process than that faced by those without disabilities—a claim that constitutes a breach of both state laws and the federal Fair Housing Act.
As part of the settlement agreement, ARBC has committed to discontinuing its practice of charging application fees and will now be required to inform tenants of their rights in relation to background screening documents. The company is also mandated to halt inquiries regarding disabilities during the application process, alongside an obligation to adjust its procedures to accommodate requests for reasonable adjustments by tenants.
The settlement follows a lawsuit initiated by the state in late 2024, which sought civil penalties and injunctive relief against ARBC for the reported violations. This legal action is part of a broader initiative by state governments to bolster enforcement of housing laws in response to rising housing challenges.
The housing crisis in the United States continues to intensify, with estimates indicating a shortage of approximately 4.5 million homes. In response, state attorneys general across the country, including those in Washington, D.C., New York, and Indiana, are ramping up efforts to address unfair housing practices and enforce tenant protections.
Rhode Island’s Attorney General’s Office is actively encouraging tenants who suspect they have fallen victim to unjust housing practices to reach out for assistance. This proactive approach highlights the ongoing commitment to protect the rights of tenants and ensure fair housing opportunities for all Rhode Islanders.
As the demand for housing remains high amid the ongoing crisis, it is anticipated that enforcement measures at the state level will persist as regulators aim to safeguard tenants and ensure compliance with existing housing laws. The AG’s recent actions against ARBC reflect a growing movement toward accountability among landlords and property management companies in the region.
This case is a reminder of the importance of awareness among consumers regarding their rights in housing applications. The settlement with A.R. Building Company serves as a critical step toward rectifying past inequities and sets a precedent in the fight against deceptive practices in the housing market.
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