The Department of Justice (DOJ) has just announced settling a rental housing discrimination suit that it is touting as the second largest monetary payment ever obtained in a fair housing case.

A Kansas City, Kansas landlord will pay a $2.13 million settlement over allegations it engaged in a pattern of discrimination on the basis of race in violation of the Fair Housing Act. The lawsuit also alleged that the defendants retaliated against an employee for cooperating with HUD investigators.

DOJ presented evidence that the landlord openly displayed racially hostile materials such as hangmans nooses, frequently referred to African Americans with racial epithets and generally treated white residents more favorably than African American residents.

According to Thomas E. Perez, Assistant Attorney General for the Civil Rights Division, “This settlement is designed to send a message to housing providers across the country that we have a zero-tolerance policy for this type of egregious behavior.”

The settlement includes $145,000 paid to settle DOJ’s claim against the former owners last summer.

Actors Posed As Tenants

The Justice Department filed a lawsuit last week against the owner and property manager of a 48-unit apartment complex in Ann Arbor, Mich., for race discrimination.

In this case, “testers” posed as applicants for housing and reported to HUD on their interactions with landlords and leasing agents regarding  compliance with fair housing laws.