Rent for Sex, Threats for ‘No’: Kentucky Landlord Banned for Life, Must Pay $510K After Decades of Harassment
The U.S. Department of Justice has reached a $510,000 settlement with a Kentucky landlord to resolve allegations that he sexually harassed female tenants in violation of federal housing law.
The agreement with Joseph E. Johnson, who owned and managed residential rental properties in Lexington, resolves a lawsuit filed in December 2024 in federal court in the Eastern District of Kentucky.
According to the complaint, Johnson engaged in a pattern of misconduct spanning decades. Federal officials alleged he offered to forgive rent in exchange for sexual acts, made unwelcome sexual advances and comments, and subjected tenants to unwanted touching. The lawsuit also accused him of entering tenants’ homes without notice and threatening eviction when tenants refused his demands. It further alleged he failed to stop similar behavior by employees.
Under the consent order approved by the court, Johnson must pay $500,000 to individuals affected by the alleged harassment and a $10,000 civil penalty to the United States.
The agreement also permanently bars Johnson from managing residential rental properties and from contacting tenants involved in the case. It requires the implementation of anti-discrimination policies and training aimed at preventing future violations.
16 States Sue HUD: ‘Stop Forcing Us to Gut Anti-Discrimination Laws or Lose Funding
A coalition of 16 state attorneys general has filed a lawsuit challenging actions by the U.S. Department of Housing and Urban Development that they say threaten fair housing enforcement and could lead to increased discrimination.
The lawsuit, announced Monday, alleges that HUD has improperly threatened to withhold funding from state and local agencies unless they scale back enforcement of certain housing protections under state law. The coalition argues the federal agency is also attempting to impose unlawful conditions on funding tied to the Fair Housing Assistance Program, a longstanding partnership between HUD and state agencies.
Connecticut Attorney General William Tong said the administration’s actions could force states to choose between complying with federal funding requirements and enforcing their own anti-discrimination laws. He said the lawsuit seeks to prevent policies that would allow housing discrimination based on factors such as sexual orientation, gender identity, language and source of income, which are protected under many state laws.
“People deserve fair access to safe, affordable housing regardless of who they love, how they identify, the language they speak or the rental assistance they may receive. But the Trump Administration is threatening to defund Connecticut and other states unless we allow landlords to discriminate based on sexual orientation, gender, language, source of income, and a bunch of other practices clearly prohibited under state law. We need housing to be more affordable and more accessible, and we’re suing to stop Donald Trump from making that even harder,” said Connecticut Attorney General Tong.
The Fair Housing Assistance Program, created in 1980, provides federal funding to state and local agencies that investigate and enforce housing discrimination complaints. Those agencies rely on the funding to process cases, train staff and conduct outreach.
According to the complaint, HUD issued guidance in September 2025 warning that agencies could lose certification and funding if they continue enforcing certain protections that go beyond federal requirements. The coalition also alleges the guidance limits the ability of agencies to pursue cases involving policies that appear neutral but have a discriminatory impact on specific groups.
The attorneys general argue the changes would increase enforcement costs for states and create confusion about how fair housing laws should be applied. They also contend the agency’s actions violate the Constitution’s Spending Clause and the Administrative Procedure Act, which governs how federal agencies implement policy changes.
The lawsuit follows what the coalition describes as broader reductions in federal fair housing enforcement, including staffing cuts and fewer discrimination cases pursued by HUD.
“As families struggle to make ends meet in President Trump’s economy, we should be expanding housing stability — not stripping it away,” said California Attorney General Bonta. “This proposal would hit California the hardest, putting tens of thousands at risk of eviction and destabilizing our economy. It is not just a terrible rule — it is fundamentally wrong and unlawful. If the Trump Administration does not withdraw it, we are prepared to take legal action in defense of our residents and their access to housing.”
“The Trump administration is once again attempting to illegally impose restrictions on the use of federal dollars that Congress has already appropriated,” Chicago – Attorney General Kwame Raoul said. “HUD’s proposed rule would leave families who are eligible to receive services faced with a cruel and impossible choice: Break up the family or lose housing access. The rule will increase rates of homelessness at a time of skyrocketing housing costs. I will continue to fight back when the president attempts to break the law at the expense of families in need.”
The legal challenge is being led by the attorneys general of California and Illinois and includes officials from Arizona, Colorado, Delaware, the District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Michigan, New Jersey, Rhode Island, Vermont and Washington.
About the Author
