A Portland-based apartment-rental agency that manages property in Bend says it is settling with the U.S. Department of Justice in a five-year-old case alleging unfair and discriminatory rental practices.

The case alleges that Bowen Property Management – which manages four apartment complexes in Bend, including one recently purchased by the Central Oregon Regional Housing Authority (CORHA) for low-income housing – charged extra fees to Russian applicants for apartments in Spokane, Wash.

The company expects to settle with the Justice Department soon and will admit no wrongdoing, said John Ballas, director of operations for Bowen.

Bowen ”absolutely” denies all allegations and has been using its own finances to fund the legal battle, Ballas said.

”This is not a situation where the insurance company is covering us, but we firmly believe that none of us did anything wrong,” Ballas said.

Bowen manages the Ariel South apartment complex recently purchased by CORHA, as well as the Ariel Glen, Summit Park and East Lake Village apartments, all in Northeast Bend near St. Charles Medical Center.

The Ariel South complex is being renovated and will be reserved for low-income families. Units will rent for $550 per month to families that earn 60 percent or less of the average county income. Renovations should be complete by the end of the year.

CORHA is aware of the suit and was working with Bowen before it was filed, said Cyndy Cook, CORHA’s executive director. She doesn’t know the details of the case but said CORHA has had no problems with Bowen and doesn’t foresee any.

”I think you’ll find that most every property management company has a little glitch,” Cook said. ”Some are bigger and some are smaller.”

The case against Bowen stems from allegations by a former Russian employee, Natalya Prach, that the company was engaging in discriminatory practices against certain tenants of the Westfall Village Apartments in Spokane because of their national origins. Bowen allegedly charged Russians extra fees to rent or change units, according to a consent order between the United States, Spokane Housing Authority and Westfall Village Apartments. The fees were not charged to other tenants, according to the consent order.

Russians who paid the alleged extra fees were allegedly given apartments while other non-Russians who inquired about apartments before them remained on the waiting list, according to the consent order.

The case also states that Ballas fired Prach after she informed him off the alleged extra fees. Ballas denies all claims of discrimination or other wrongdoing.

Prach directed The Bulletin’s inquiries to her attorney. A phone call to the attorney was not returned.

Prach, several Russian tenants and the Northwest Fair Housing Alliance filed complaints in July 2000 with the U.S. Department of Housing and Urban Development, according to the consent order.

The department issued a charge of discrimination in September 2002 and referred the case to the U.S. Department of Justice after attempts to settle were unsuccessful, the consent order said. The Justice Department named the Spokane Housing Authority, complex owners Westfall Village Apartments, Bowen Property Management, Ballas and Bowen employees Glenn and Kerrey Lemons as defendants.

Spokane Housing Authority and Westfall Village settled in August 2003, admitting no wrongdoing and agreeing to pay $90,000 to plaintiffs, attend fair-housing training, post fair-housing posters and develop new nondiscrimination policies, according to the consent order.

Ballas said the Spokane Housing Authority and Westfall settled because of the high cost of continuing litigation.

But Bowen continued to fight until a settlement could be reached that was more satisfactory because Bowen representatives are adament they did nothing wrong. Settlement terms are expected to be announced soon.

”They’ve (the Justice Department) been dragging their feet for all this time because they really don’t have much of a case, and they know it,” Ballas said.

CORHA closely watches its property management companies and makes a point to stay informed about daily operations, and the chance of discrimination taking place is slim to none, Cooks said.

”We really know the people that are out in the field,” Cooks said. ”We certainly wouldn’t put up with any discrimination.”