Fulton Grace Realty Settles in Landmark Source of Income Discrimination Case
For Immediate Release:
Aug. 10, 2026
Contact:
Zindy Marquez, Chicago Lawyers’ Committee for Civil Rights
zmarquez@clccrul.org | (312) 202-3657
**Media Interviews Available Upon Request**
Fulton Grace Realty Settles in Landmark Source of Income Discrimination Case
This is the most significant settlement since the source of income protection became law in Illinois in 2023
CHICAGO, IL (Aug. 10, 2026) – Today, HOPE Fair Housing Center (HOPE) and Northside Community Resources (NCR) announced a settlement has been reached in a pair of lawsuits against Fulton Grace Realty for source of income discrimination against Housing Choice Voucher (Voucher) holders. This is the most comprehensive settlement since the source of income protection became law in Illinois in 2023.
As a result of the settlement, Fulton Grace Realty will retrain its hundreds of affiliated leasing agents, update its online application, change its income and credit guidance to ensure property owners are not disregarding qualified Voucher applicants, and waive application fees for Voucher applicants for the next year (as of August 3, 2026). Fulton Grace Realty will also designate a Voucher Liaison to work with HOPE, Northside Community Resources, its leasing agents, and other stakeholders to ensure Voucher applicants have equal opportunity to work with Fulton Grace agents and clients. This outcome represents a landmark victory for the plaintiffs and generally for Voucher holders seeking fair access to housing opportunities since the source of income protection was added to the Illinois Human Rights Act in 2023.
HOPE, NCR, and five Voucher holders filed the lawsuits last year, seeking damages and changes to Fulton Grace Realty’s treatment of Voucher applicants. Chicago Lawyers’ Committee for Civil Rights and Legal Aid Chicago represented the organizations and individuals.
The lawsuit alleged Fulton Grace Realty discriminated against five named tenants with vouchers who were searching for rental housing and interacted with Fulton Grace Realty leasing agents. The agents would halt communication, deny applications, or use irrelevant income and credit criteria to reject their applications. HOPE, NCR, Legal Aid Chicago, and Chicago Lawyers’ Committee for Civil Rights investigated and found Fulton Grace Realty agents routinely ghosted, misrepresented information, and prevented tenants with vouchers from applying or outright refused to provide them with an application at all.
“Housing discrimination is not always easy to identify, especially when it is embedded within the systems we use every day,” said Michael Chavarria, Executive Director at HOPE. “Achieving this just outcome required extensive investigation and close collaboration of our legal counsel and co-plaintiffs. At a time when federal support for fair housing enforcement is destabilizing, public investment is critical. After all, fair housing rights are meaningless without the ability to investigate discrimination and hold violators accountable.”
As a result of the settlement, Fulton Grace has agreed to pay a confidential settlement to the plaintiffs and amend its application policies and practices. Fulton Grace will also:
Retrain all Fulton Grace Realty agents and employees within three months (400+ leasing agents across Illinois).
Adopt a formal policy for its leasing agents to advise owners/clients that Voucher holders pass minimum income standards and to only consider housing- or utility-related debts from the past 2 years on credit screening.
Amend Fulton Grace Realty’s policies, applications, website, and the model applicant summaries agents provide to owners to only apply relevant income and credit criteria when evaluating applications from Voucher holders.
Designate a voucher liaison to work with internal and external stakeholders on ensuring equal opportunity to Voucher applicants.
Waive application fees for Voucher and other income-based subsidy applicants who complete a rental application, during a one-year monitoring period (approximately Aug. 3, 2026, through Aug. 3, 2027).
“We are pleased to have secured meaningful, long-term relief for our clients and for the ongoing work with Fulton Grace Realty to ensure adherence to source of income protections for all tenants with vouchers in the future,” said MacKenzie Speer, program counsel at Chicago Lawyers’ Committee for Civil Rights. “We hope other leasing agencies, management companies, and other stakeholders take note of the changes Fulton Grace made to its income and credit screening, and ensure their own policies are not blanket barriers to considering qualified Voucher applicants.”
“This is an important win in the fight for fair and accessible housing. Source of income discrimination is unlawful – housing providers must ensure their compliance so that tenants with vouchers are not unfairly blocked from housing opportunities,” said Julie Pautsch, supervisory attorney with Legal Aid Chicago. “We look forward to seeing the impact of the changes Fulton Grace made to genuinely increase meaningful access to housing for voucher holders.”
“Source of income discrimination is a major barrier to housing stability for families who participate in the Housing Choice Voucher program,” added Chris Zala, at Northside Community Resources. “Fulton Grace Realty’s new commitments are a vital step in ensuring tenants with vouchers aren’t unjustly denied their basic right to a home by leasing agencies. It is critical that we continue to hold housing providers accountable so that all families and individuals, regardless of their source of income, can access safe and affordable housing opportunities.”
HOPE and NCR offer free housing counseling services. You can report housing discrimination by calling HOPE at (630) 690-6500 or NCR at (773) 338-7722 ext. 16.
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Chicago Lawyers’ Committee for Civil Rights
Chicago Lawyers’ Committee for Civil Rights is a nonpartisan, nonprofit group of civil rights lawyers and advocates working to secure racial equity and economic opportunity for all. We provide legal representation through partnerships with the private bar, and we collaborate with grassroots organizations and other advocacy groups to implement community-based solutions that advance civil rights. For more information, visit www.clccrul.org.
HOPE Fair Housing Center
HOPE Fair Housing Center works to create greater housing opportunities for all. We want to ensure everyone has the chance to live where they choose, free from discrimination based on race, color, religion, national origin, sex, disability, familial status, or any other characteristics protected under law. HOPE accomplishes this through education, outreach, enforcement, training, and advocacy. For more information, visit hopefair.org or call (630) 690-6500.
Northside Community Resources
Rogers Park Community Council, d/b/a Northside Community Resources, is a 72-year-old private, non-profit service organization. NCR’s mission is to build and strengthen communities on Chicago’s North Side, which it fulfills through a diverse set of housing-centric activities and programs focused on people with low incomes, seniors, and immigrant and refugee populations. NCR offers housing counseling services, education and outreach, mediation services and other renter technical assistance. In its work ensuring equal housing opportunity, it processes and refers complaints concerning fair housing violations. For more information, visit northsidecr.org, email fairhousing@northsidecr.org, or call 773-338-7722 x 16.
Legal Aid Chicago
At Legal Aid Chicago, we work together to provide high quality civil legal aid to people living in poverty and other vulnerable groups. Through advocacy, education, collaboration, and litigation we empower individuals, protect fundamental rights, strengthen communities, create opportunities, and achieve justice. In carrying out our mission, we treat everyone with compassion and respect. For more information, visit www.legalaidchicago.org.