Feds ask judge to install property manager to address Gunnison landlords’ non-compliance
The federal government has asked a judge to appoint an independent property manager to bring a trio of Gunnison landlords into compliance with a non-discrimination consent decree they have largely ignored for over four years.
On Tuesday, U.S. District Court Judge Gordon P. Gallagher called the motion “relatively straightforward” and set a deadline of two weeks for David Welch, John Welch and Ruth Welch to respond.
“The United States believes at this point, there has been a pattern of communicativeness followed by periods of silence,” said Zeyen J. Wu, an attorney representing the U.S. Department of Housing and Urban Development. “We feel that further action is necessary to obtain compliance.”
Wu added that the appointment of a property manager would hopefully be “more effective” than holding the Welches in contempt of court for their actions in the unusual case.
Feds tell judge Gunnison landlords continue to thumb nose at non-discrimination order
In late 2019 and early 2020, the Welches signed a consent order in response to allegations they were denying or discouraging families from renting their property at Westwood Cove Condominiums, which is a violation of the Fair Housing Act. The consent decree required them to pay $800 to the Denver Metro Fair Housing Center, include the language “families with children welcome to apply” when advertising the property, and provide records of rental inquiries and applications to the department.
Since then, the Welches largely ignored the agreement.
“This whole situation was started with untruthes (sic) and absolute lies,” Ruth Welch wrote to Gallagher last month, prior to a hearing in which none of the Welches showed up. She added that her “priorities have changed” and the department is “at the bottom of the list!”
Federal judge to Gunnison landlords: Comply with anti-discrimination measures or 'punishments are going to start'
Originally, after the Welches failed to appear at a hearing in 2022, U.S. Magistrate Judge N. Reid Neureiter recommended holding them in contempt. U.S. District Court Judge Daniel D. Domenico, who initially presided over the case, held off on imposing punishment after the government indicated it may be making progress with the family.
Last summer, Domenico enlisted Gallagher to travel to Gunnison and hold a hearing at the Welches’ local courthouse. He told them that compliance with the consent decree “needs to start now.”
Gunnison landlords escape contempt, but federal judge remains concerned about non-discrimination compliance
“I’ve never seen a court put somebody in jail for this,” Gallagher added. “But at some point, the court’s going to say, ‘Enough is enough,’ and the punishments are going to start happening.”
FILE PHOTO: The Alfred A. Arraj U.S. Courthouse in downtown Denver. (Photo courtesy of United States District Court – Colorado)
Instead, the government continued to report the Welches were ignoring the terms of the consent decree by advertising their property without the family-inclusive language and withholding the required rental records. Recently, Ruth Welch told Gallagher’s staff she “would not come to Court, ever, as she has more important priorities and does not agree with this process,” a docket entry read.
However, near the end of March, Ruth Welch changed her mind and asked for a status conference with Gallagher. She appeared by phone seven minutes late on April 9, only to say she had not seen the government’s motion for an independent property manager because she had not checked her Post Office box.
Federal judge to Gunnison landlords: Comply with anti-discrimination measures or 'punishments are going to start'
“Whether you’ve received it or not because you haven’t gotten your mail, unfortunately, falls on you and not the government,” Gallagher told her.
Wu’s motion proposed that the government and the Welches select candidates to manage the property and fulfill the terms of the consent decree, with Gallagher making the ultimate selection. The family would be responsible for the cost.
Federal judge gives Gunnison landlords final chance to show up, avoid arrest
“Respondents cannot be relied upon to carry out the consent order, or this Court’s orders,” Wu wrote. “An independent property manager could take the steps to carry out those terms and help bring this matter closer to a resolution.”
Ruth Welch told Gallagher the request “doesn’t make sense to me” because all of her units were rented.
“What are they gonna manage?” she asked.
Gallagher responded that the property manager would take over the Welches’ legal obligations to advertise with family-inclusive language and provide the required rental logs to the government.
Judge signals openness to arresting Gunnison landlords over discrimination claims
“Well, I really think the mortgage companies will have something to say here,” Ruth Welch said.
“They’re not part of this case,” Gallagher replied. He added the Welches were free to include any statements they wished in their reaction to the government’s motion.
The Welches have until April 23 to file a response.