A federal judge on Wednesday gave three Gunnison landlords who have repeatedly failed to comply with nondiscrimination orders one final chance to show up in court and explain themselves, or else face consequences.

The bizarre saga of David Welch, John Welch and Ruth Welch began in 2020, when the three operators of a Gunnison condominium complex entered into a consent decree in response to allegations that they were denying or discouraging families with children from renting at 1412 W. Gunnison Ave.

Among other things, the Welches agreed to advertise their property with the phrase “families with children welcome to apply” and provide records of rental inquiries and applications to the U.S. Department of Housing and Urban Development (HUD).

But, according to HUD, the Welches ignored the agreement almost entirely.

On May 9, U.S. District Court Judge Daniel D. Domenico issued an order giving the Welches a “last chance” to comply with the original consent decree, or he would impose “large fines, jail time, community service, or all three.”

Again, the Welches did not respond. HUD told Domenico that instead, the trio had run another advertisement for their property without the family-inclusive language that the consent decree, and now Domenico, required.

On Wednesday, Domenico informed the Welches his patience has run out.

“They did not do what I ordered. Now the Welches must come to court and explain themselves,” he wrote on July 26.

If they again fail to show or do not have a “good explanation” for their inaction, Domenico promised to fine them $150 per day until they fulfill their obligations under the consent decree and now the court’s order. From there, Domenico warned of arrest and jail time.

As early as August 2022, U.S. Magistrate Judge N. Reid Neureiter recommended holding the Welches in contempt. Domenico held off as HUD’s attorney told him the department was making progress with the Welches. Recently, however, any move toward compliance evaporated.

“Being held in contempt of court has serious consequences, and the Welches are urged to consult a lawyer to discuss this situation,” Domenico wrote.

Domenico scheduled a hearing for Aug. 18 so the Welches may explain themselves. In contrast to the typical procedure, Domenico elected to hold the hearing where the Welches are, at the Gunnison County Courthouse, rather than at the federal courthouse in Denver. U.S. District Court Judge Gordon P. Gallagher, who is stationed in Grand Junction, will preside over the hearing.