The 1991 Fair Housing Act was created to establish national guidelines for building accessibility.

"But for years," Matt Chaban wrote in an article today at observer.com, "developers in the city relied on a provision in the local building code from 1987 that they considered more stringent. The federal government disagreed, filing a lawsuit two years ago against developer AvalonBay, which is headquartered in Arlington, Virginia. The company has seven properties in the city, and one in particular on the Lower East Side was deemed insufficiently accessible. AvalonBay has just settled the suit with the government..."

The settlement between AvalonBay Communities and the U.S. government "has landlords across the city fearing they'll be forced to make changes at tens of thousands of apartments to comply with federal law preventing discrimination against the disabled," according to an article today by Craig Karmin in The Wall Street Journal.

"The settlement with AvalonBay Communities, which will affect seven New York buildings with a total of 2,557 apartments, includes reconfiguring kitchens and bathrooms for wheelchair access and changing floor levels in common areas. The developer also has agreed to put aside $2 million to cover any bias claims made by disabled people," the article said.

In a statement, Manhattan U. S. Attorney Preet Bharara said that "This settlement ensures that thousands of apartments will be made accessible to people with disabilities and that victims of unlawful discrimination will be justly compensated."

The article said that Fred Harris, senior vice president at AvalonBay, said that "We're committed to building accessible buildings. The federal government is requesting we take a number of actions and we are doing it."

"Advocates for the handicapped," the article continued, "say all rental apartments should be wheelchair-accessible even if people without disabilities live there. Otherwise, they warn, landlords will be reluctant to rent to the disabled because it would involve costly upgrades. Real-estate officials say upgrading kitchens, bathrooms and buildings' common areas to comply with the Fair Housing Act could run tens of millions of dollars, if all apartments built since the law took effect in 1991 have to comply. Until recently, New York landlords felt that they were meeting the federal law by complying with a 1987 city ordinance that they felt was tougher."

"But," the article said, "in 2008, the U.S. Attorney's office in Manhattan sued AvalonBay Communities, a large owner, and sent notices to 10 others warning that their buildings were not sufficiently accessible to wheelchairs under the U.S. law....The 10 other developers that got notices are in negotiations with the government, including such big names as Related Cos., the Durst Organization and Silverstein Properties, according to public documents. Two other developers, Larkspur LLC and Friedland Properties, are also close to an agreement, say people familiar with the matter. Officials at those companies declined to comment."

The article said that Steven Spinola, the president of the Real Estate Board of New York, said that "The industry is nervous because the terms of these settlements could affect every rental unit built in New York City since 1991," adding that without clarity about where the city code satisfies federal law, "all new developments will face serious risks and uncertainty."

Developers also fear that settlements on this issue could set a precedent of federal involvement in city building regulation, which is now the responsibility of the city's Department of Buildings.

Industry experts say making the changes required of AvalonBay's building would run about $2,500 per unit on average.