In Smithtown whites were given undue preferences for rent subsidy vouchers because the town comprises of 93 percent white people. Four plaintiffs on behalf of the nonresident minorities filed the lawsuit in 2007 against the town due to this unjust policy .
According to the suit, the town issued Section 8 vouchers to 92 whites, 7 blacks and 2 Hispanics in 2006 even though minorities made up more than half of the waiting list at that time.
The lawsuit was filed by the Lawyers’ Committee for Civil Rights.The settlement was approved unanimously at the town board meeting on 3rd Feb,2009.
The settlement will pay $925,000 from the town’s insurance company , AIG , to the claiming applicants.The 4 plaintiffs will receive their vouchers.The town also agrees to modify the distribution policy of vouchers.New list will alternate residents and non-residents instead of separating them into two groups.