Reading mode Exit reading mode

Housing Discrimination: DOJ Lawsuit Against Trump Management Corporation for Racial Discrimination

The DOJ brought one of the largest housing discrimination lawsuits of 1973 against the Trumps, alleging their agents told Black rental applicants apartments were not available when they were available to white applicants, coded applications by race, and directed minority applicants to housing in predominantly Black neighborhoods. Trump denied the allegations vigorously and counterattacked the DOJ. The company settled in 1975 and allegedly violated the decree by 1978.

Record summary

Grade

Grade 2 of 5: Major Abuse of Power

Executive actions that exceed constitutional authority, circumvent statutory constraints, or weaponize government institutions for political ends. Scale and definitions

Status
Concluded
Incident date
Record updated
Location
New York City, NY
Category
Civil Rights
Legal posture
Judicial finding
War-crime classification
Enabling conduct
Verification
Independently verified
ICC relevance
No
Sources
4 cited
Stable ID
trump-housing-discrimination
Victims
Black and Puerto Rican applicants systematically denied housing in Trump-owned residential buildings across Brooklyn, Queens, and Staten Island
Alleged responsible parties
  • Donald Trump, President, Trump Management Corporation— Trump Management Corporation / Trump Organization
  • Fred Trump, Chairman, Trump Management Corporation— Trump Management Corporation

Key points

  • The DOJ suit alleged that Trump Management employees told Black applicants that no apartments were available while showing those same apartments to white applicants
  • Applications from minority applicants were allegedly marked with the letter 'C' (for 'colored') so agents could identify and reject them
  • Trump denied the allegations and publicly attacked the DOJ for pursuing the case, calling it a 'reverse discrimination' suit
  • The 1975 consent decree required Trump Management to advertise vacancies in minority publications and stop discriminatory practices — but imposed no fine and required no admission of wrongdoing
  • The Urban League accused Trump Management of violating the consent decree within two years of signing it
  • Trump has called the settlement an 'admission of nothing' and maintained the company did nothing wrong

Overview

In October 1973, the U.S. Department of Justice filed one of its most significant housing discrimination cases of that era against Trump Management Corporation and its leadership — Fred Trump (chairman) and his son Donald Trump, then 27 and serving as president of the company. The complaint alleged systematic racial discrimination across 39 residential buildings in Brooklyn, Queens, and Staten Island.

The allegations were specific. Undercover testers employed by a civil rights organization found that Black applicants were told apartments were unavailable — then white testers for the same units were told apartments were available and shown the properties. Applications from minority applicants were allegedly coded so staff could identify and reject them. Black and Puerto Rican applicants were allegedly steered toward properties in predominantly minority neighborhoods rather than the buildings they sought.

Trump's Response

Rather than respond to the substance of the allegations, Trump hired attorney Roy Cohn — the notorious fixer who had been chief counsel to Senator Joseph McCarthy — and filed a $100 million countersuit alleging the Department of Justice was engaging in "reverse discrimination." The countersuit was dismissed.

Trump gave press interviews characterizing the suit as politically motivated and insisted the company had not discriminated against anyone.

In June 1975, Trump Management signed a consent decree without admitting wrongdoing. The decree required the company to advertise vacancies in newspapers that served Black and Puerto Rican communities, hire a coordinator to facilitate equal access, and provide monthly reports to the Urban League of Greater New York.

Within two years, the Urban League reported that the company was violating the decree's requirements. The DOJ investigated but did not file a second suit.

Historical Significance

The 1973 lawsuit established an early documented record of racial discrimination as an operational practice at Trump's core business. Trump has consistently denied wrongdoing and characterized the settlement as equivalent to a clean record. The case resurfaced prominently during his 2016 presidential campaign, when civil rights advocates drew a direct line from the 1973 practices to his campaign rhetoric targeting minority communities.

International law engaged

InstrumentProvisionWhat it protects or prohibits
International Covenant on Civil and Political RightsArticle 26Prohibition on racial discrimination; equal protection before the law
International Convention on the Elimination of All Forms of Racial DiscriminationArticle 5(e)(iii)Right to housing without racial discrimination

Update log

  1. Updated with 2016 campaign coverage and Trump's contemporary statements.

Sequence of events

  1. DOJ files suit

    The U.S. Department of Justice files one of its largest housing discrimination suits of the era, naming Trump Management Corporation and Fred and Donald Trump. The complaint alleges the company discriminated against Black and Puerto Rican applicants in 39 buildings across Brooklyn, Queens, and Staten Island.

  2. Trump counterattacks

    Donald Trump, then 27 and president of the company, hires attorney Roy Cohn and files a $100 million countersuit alleging the DOJ is engaging in 'reverse discrimination.' The countersuit is dismissed.

  3. Consent decree signed

    Trump Management signs a consent decree agreeing to change its practices — advertising vacancies in minority publications, hiring a housing coordinator, and submitting monthly reports. No fine is imposed; no admission of wrongdoing is made.

  4. Urban League: decree being violated

    The Urban League of Greater New York, which the consent decree required to review Trump Management's practices, reports that the company is violating the terms of the agreement. A DOJ investigation confirms issues but does not bring additional charges.

  5. Suit resurfaces in 2016 campaign

    The New York Times and ProPublica revisit the discrimination case during the 2016 presidential campaign. Trump dismisses it: 'We settled the suit with zero — with no admission of guilt.'

Sources

  1. Major Landlord Accused of Antiblack Bias in City — The New York Times
  2. Long Before Donald Trump Was President, He Faced Claims of Housing Discrimination — The New York Times
  3. Investigation: Trump's Racial Discrimination in Housing — ProPublica
  4. In 1973, Trump was accused of discrimination. Here are the details. — The Washington Post

How this record was published

Related records

Similar by category, grade and tags.

  • Grade 4 of 5: Critical Rights and Rule-of-Law Concern

    1973 DOJ Housing Discrimination: Trump and Father Sued for Refusing to Rent to Black Applicants

    The DOJ suit was based on a year-long investigation by the Fair Housing Division, including undercover testers who posed as prospective renters. Black testers were told no apartments were available or were given discouraging treatment; white testers at the same buildings were shown units and given applications. Trump applications were alleged to contain a 'C' code — interpreted as standing for 'colored' — to flag non-white applicants. Trump hired Roy Cohn, who filed a $100 million countersuit against the DOJ (dismissed). The 1975 consent decree required anti-discriminatory practices but did not require Trump to admit wrongdoing. Three years later, the DOJ found Trump Management had violated the decree.

  • Grade 2 of 5: Major Abuse of Power

    1973 DOJ Housing Discrimination Settlement: Trump's First Civil Rights Case

    Black applicants at Trump apartment buildings were systematically denied housing that was simultaneously offered to white applicants. A Black doorman described being instructed to discourage Black applicants; the government documented instances where the Trumps coded applications with a 'C' (for 'colored') to identify Black applicants for rejection. Trump hired Roy Cohn to fight the lawsuit, countersuing the government for $100 million. He settled without admitting guilt in 1975. Three years later, DOJ filed a second suit alleging violations of the settlement terms.

  • Grade 2 of 5: Major Abuse of Power

    DOJ Housing Discrimination Suit: Trump Refused to Rent to Black Applicants

    The DOJ complaint documented specific evidence including testers — white and Black individuals sent to inquire about the same apartments — where Black applicants were told there were no vacancies while white applicants were offered leases for the same units. An employee named Elyse Goldweber documented that a Trump employee had marked rental applications with the letter 'C' (for 'colored') to identify minority applicants. Trump's response was to hire Roy Cohn, file a $100 million countersuit against the DOJ (which was dismissed), and ultimately settle via consent decree in 1975. The consent decree required Trump Management to place ads in minority newspapers and to notify the Urban League of vacancies; Trump violated the decree within two years and a second agreement had to be negotiated.

  • Grade 2 of 5: Major Abuse of Power

    Documented Racial Discrimination by Trump Organization Against Employees and Tenants

    John O'Donnell's 1991 memoir 'Trumped!' quoted Trump making explicitly racist remarks about a Black accountant: criticizing the employee's work and saying he preferred having 'short guys that wear yarmulkes every day' do his accounting rather than Black men. In a 1997 Playboy interview, Trump was asked about the quotes and replied the book was 'probably true' — then added that he had been 'playing golf' when he said it and denied the remarks were racist. New Jersey Casino Control Commission records documented that supervisors at Trump's Castle were instructed to remove Black dealers from tables when certain high-rolling guests requested it, a discriminatory practice that resulted in regulatory sanctions.