5-13-16

Real Estate Journal — NJAA CONFERENCE & EXPO — May 13 - 26, 2016 — 21D

www.marejournal.com

M id A tlantic

2016 NJAA C onference & E xpo

By Derek D. Reed, Esq., Ehrlich, Petriello, Gudin & Plaza Residential property owners beware: New HUD Guidance may leave you susceptible A recent U.S. Depart- ment of Housing and Urban Development

their criminal history. Specifi- cally, the Guidance states that housing providers and opera- tors are prohibited from deny- ing individuals solely based on an arrest history. Further, the Guidance suggests that property owners should use a case-by-case analysis for evaluating individuals with conviction histories. HUD’s Guidance memo is rooted in the Fair Housing Act, which prohibits discrimi- nation in the sale, rental or financing of dwellings and in other housing-related activi- ties on the basis of race, color,

the exemption for unintention- al discrimination under the Fair Housing Act for criminal activity that involves the il- legal manufacture or distribu- tion of a controlled substance. It is imperative that housing providers review their rental policies and practices and make the necessary revisions to conform to HUD’s Guidance memo. Derek D. Reed, Esq. is a partner with Ehrlich, Petriello, Gudin and Plaza with offices in Newark, NJ, Morristown, NJ and New York City. n

religion, sex, disability, famil- ial status or national origin. While criminal history is not an explicitly protected class under the Act, HUD warns that a blanket criminal back- ground-based restriction can nevertheless violate the Act if such a limitation creates a dis- parate impact on a protected class. Therefore, a violation may occur when, if without justification, tenants or other housing market participants of one protected class are more often denied housing over members of another class. In practice, even if the housing

provider has a class-neutral or nondiscriminatory policy, if the ban tends to make it more difficult for members of one class to obtain housing over members of another class, the policy may be considered discriminatory under the Fair Housing Act and could expose the provider to liability. Housing providers may im- plement a criminal history screening policy if they can demonstrate that it is neces- sary to achieve a substantial, legitimate and nondiscrimina- tory interest. Notwithstand- ing, the Guidance leaves intact

Derek Reed (HUD) Guid- ance memo warns that residential p r o p e r t y owners may not use blan- ket bans to deny individ- uals of hous- ing opportunities based on Investors Bancorp, to acquire The Bank of Princeton SHORT HI LLS , NJ / PRINCETON, NJ — In- vestors Bancorp, Inc. and The Bank of Princeton announced the signing of a definitive merger agreement under which The Bank of Princeton will merge with and into Investors Bank, the wholly-owned subsidiary of Investors Bancorp, Inc. Con- sideration will be paid to The Bank of Princeton stockhold- ers in a combination of stock and cash valued at $154 mil- lion, inclusive of options and warrants and based on Inves- tors Bancorp’s closing price of $11.43 on May 3, 2016. Upon completion of the trans- action, Investors Bank will add 13 branches primarily in the greater Princeton, NJ area and in Philadelphia, PA. As of March 31, 2016, The Bank of Princeton had assets of $1.0 bil- lion, loans of $842 million and deposits of $820 million. 2015 net income was $11 million, implying a return on average assets of 1.12% and return on average equity of 13.0%. With approximately $22 billion in assets post-closing, Investors Bancorp will be posi- tioned to deliver a wide range of comprehensive retail and commercial banking services through a combined network of 156 branches throughout the Philadelphia to New York City corridor. Pro forma for the acquisition, Investors Ban- corp will rank fourth in depos- its in Mercer County, an area with per capita income well above national and regional averages. “We are pleased to partner with The Bank of Princeton, a commercial bank with a track record of strong profitability and growth,” said Investors Bancorp’s President & CEO, Kevin Cummings. n

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