Official State of Rhode Island website

State of Rhode Island Attorney General Peter F. Neronha

Attorney General Neronha announces $213,000 settlement with national real estate management corporation

Published on Thursday, April 17, 2025

Attorney General Peter F. Neronha today announced a $213,000 settlement with A.R. Building Company, Inc. (ARBC) which resolves allegations of unfair trade practices targeting prospective tenants and sets a standard for the Rhode Island housing industry.

The settlement requires ARBC to refund $98,250 to affected consumers for illegal application fees and also requires the Company pay $114,750 to the State. Additionally, per the terms of the settlement agreement, ARBC will:

  • stop charging application fees to prospective tenants;
  • allow prospective tenants to avoid screening fees by submitting their own screening documents;
  • provide copies of screening documents to all prospective tenants for whom ARBC obtains such documents;
  • disclose to prospective tenants their rights regarding screening documents;
  • stop inquiring whether prospective tenants have a disability;
  • allow prospective tenants who identify as having a disability to submit housing applications using the same process as applicants who do not identify as having a disability; and
  • change its administrative process for prospective and current tenants who request a reasonable accommodation.

“We will hold accountable any entity that attempts to take advantage of consumers by implementing illegal barriers to finding a home, a practice made all the more egregious by the fact that we are in the midst of a severe housing crisis,” said Attorney General Neronha. “With this settlement, not only are we returning nearly $100,000 to Rhode Island consumers, we are barring this company from further engaging in behaviors that we allege are illegal and discriminatory. We must make it easier, not harder, for people to obtain safe, affordable housing, and that’s why my Office will continue to hold accountable bad actors who place profits over people. Let this settlement serve as a warning to those who may still be engaging in illegal housing practices; we won’t stand for it, and we won’t hesitate to take further action.”

This settlement resolves claims that ARBC charged its prospective tenants application fees, failed to provide a way for prospective tenants to submit their own screening documents, and failed to provide copies of those documents to the prospective tenants who paid ARBC to obtain them, all of which are prohibited by law. The settlement also resolves claims that ARBC subjected applicants with disabilities to a different, more onerous application process than applicants without disabilities in violation of Rhode Island’s Fair Housing Practices Act and the federal Fair Housing Act.

Impacted consumers who paid an application fee or "administrative fee" to ARBC between January 1, 2024 and January 30, 2025 should contact the property manager for the ARBC property where they applied. Unclaimed funds will be donated to the Special Olympics of Rhode Island.

Deceptive Trade Practices Act

In 2021, Attorney General Neronha worked with the General Assembly to pass legislation that restored the authority of the Office of the Attorney General to protect Rhode Island consumers against violations of the Deceptive Trade Practices Act (DTPA). Other efforts led by the Attorney General under the DTPA include a lawsuit against a residential solar company for allegedly scamming Rhode Islanders, a suit against a contractor for alleged unlawful behavior, halting a Certificate of Good Standing scheme, as well as other investigations.

Further, in March 2025, the Office filed a lawsuit against Michael Moccia and Palisade Legal Group, PLLC, a debt-management service provider, alleging they violated the DTPA by charging illegal and excessive fees and damaging consumers’ credit scores.

Additionally, the Office filed a lawsuit against local real estate broker, Kyle Seyboth, and associated defendants in November 2024, alleging they violated the DTPA by deceiving homeowners with limited English proficiency, executing a “foreclosure rescue” scheme where the homeowners believed they were refinancing their mortgage when in fact they were executing paperwork for the sale of their home for significantly less than market value.

And in 2023, the Office sued Pioneer Investments, LLC for allegedly failing to comply with numerous state rental, lead hazard, and consumer protection laws that placed the health and safety of hundreds of renters at risk, and which constituted unfair market practices. 

Special Assistant Attorney General Jordan Mickman, Chief of the Civil Rights Unit and Special Assistant Attorneys General Leonard Giarrano and Kyla Duffy handled the matter on behalf of the Office of the Attorney General.

 

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