Clippers owner Donald Sterling agreed to pay $2.725 million to settle allegations he discriminated against African- Americans, Hispanics and families with children at apartment buildings he controls in Los Angeles.

The U.S. Justice Department made the announcement Tuesday, but said the settlement must be approved by U.S. District Judge Dale S. Fischer.

"Housing is a basic human need, and yet decades after passage of the Fair Housing Act, far too many still encounter barriers like discrimination. Particularly in times of economic distress and rising foreclosures, we must remain vigilant to ensure all individuals have equal access to housing," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The magnitude of this settlement should send a message to all landlords that we will vigorously pursue violations of the Fair Housing Act."

The Justice Department filed the lawsuit in August 2006 against Sterling, alleging that he, his wife and the Sterling Family Trust engaged in discriminatory rental practices on the basis of race, national origin and familial status.

In court filings, the U.S. presented evidence that employees for the defendants prepared internal reports that identified the race of tenants at properties the Sterling family purchased in Koreatown. The defendants made statements to employees at Koreatown buildings that indicated African- Americans and Hispanics were not desirable tenants. The U.S. also presented analysis in court filings showing that the defendants rented to far fewer Hispanics and African-Americans in Koreatown which than would be expected based on income and other demographics.

In the filing, the Justice Department also said an African-American family and an interracial married couple with biracial children alleged that the defendants demolished the private yards that had been part of their apartment and took other actions against them because of their race.

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