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Appleton landlords settle federal lawsuit over emotional support animal discrimination for $20,000

The DOJ alleges the landlords violated the Fair Housing Act by denying accommodations for their tenant's six prescribed emotional support animals.
Ashlee Crosno
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APPLETON (NBC 26) — A federal housing discrimination case involving emotional support animals has been settled, with Appleton landlords agreeing to pay $20,000 and undergo Fair Housing Act training after being accused of discriminating against a tenant with mental health disabilities.

NBC 26 spoke with both the landlord and her former tenant following the settlement.

Appleton landlords settle federal lawsuit over emotional support animal discrimination for $20,000

The case centered on Ashlee Crosno, who lived in the duplex with her husband and children for eight years. According to federal housing officials, her request for six animals as part of her mental health treatment led to lease notices, fines, and the threat of eviction.

"We had never heard of six emotional support animals as a reasonable accommodation," said the Estradas, the property owners.

Those animals were two cats, three pet rats, and later a dog. Crosno says each one was part of her doctor-approved treatment for anxiety and PTSD.

"And they've been extremely beneficial to me. They help with nighttime wakefulness and anxiety in general. They like to lay on me and everything," Crosno said.

Crosno says that in 2022, her psychiatrist wrote letters recommending the animals to help her cope, prescribing them to reduce anxiety and improve her mood.

On June 29, 2022, Crosno emailed landlord Tammy Estrada, formally asking for a reasonable accommodation under the Fair Housing Act. But nine minutes after she sent a second doctor's letter, Estrada denied the request, claiming the city only allowed three animals and insisting on breed restrictions and extra fees.

Court documents quote Estrada writing, "It's a home, not a farm nor a zoo."

The Estradas say Crosno's request raised questions about safety, property damage, and what the law actually allowed.

"You don't have a problem with accommodation?" I asked.

"No, not at all. We've just never heard of six emotional support animals before, so we were having questions on that," they responded.

Alleged harassment and retaliation

According to federal housing investigators, emails between both sides turned into lease violation notices. The complaint alleges that over the next few days, the Estradas sent multiple emails, called Crosno's psychiatrist to threaten a report, and contacted a local shelter to block her from adopting a dog.

Within three days, Crosno received three "breach of contract" notices—some demanding more than $2,000 in pet rent and fines.

The U.S. Department of Housing and Urban Development says the Estradas restricted Crosno's request, applied pet fees, and retaliated after she filed a complaint. Officials say the landlords ignored federal HUD guidance stating assistance animals are not pets and can't be limited by breed or size or be subject to pet fees.

Case settled through mediation

In November 2024, the U.S. Department of Justice filed the case in federal court, but it did not proceed to a trial.

"We decided to settle it through mediation," the Estradas said.

Terms include a $20,000 payment to Crosno—which the Estradas say they paid a portion of while their insurance paid the rest of it—Fair Housing Act training for the Estradas, a written policy for future accommodation requests, and only neutral rental references.

The Estradas did not admit liability but acknowledged the court outcome and are moving forward.

Meanwhile, Crosno says the money will help her continue training her service dog, and she hopes sharing her story encourages others to stand up for their rights.

"We've settled the case. Our kids are okay with our landlords now, and the relief that I feel after settling everything is magnitudinal," Crosno said.

Under the Fair Housing Act, assistance animals — including emotional support animals — are protected when a disability-related need is documented, unless they pose a specific safety or damage risk.

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