Received Complaint for Not accepting Sec 8, How do i respond?

General Landlording & Rental Properties
6yFollow

Received Complaint for Not accepting Sec 8, How do i respond?

Alex Tokmazeyskiy
Buffalo Grove, IL · Member since 2020 · 25 posts · 9 votes

I posted an ad stating "No Section 8" and received a discrimination complaint for it. Ad has been taken down already a few weeks ago. Due to long process and apartment being vacant i just did not want to deal with long process. How should i Respond in writing? I did not know that in Chicago you are not allowed to state No Sec 8 in the ad. Any suggestions ?

0Reply
51 views

Most Popular Reply

Frank Procopio
Real Estate Agent · Naples, FL · Member since 2016 · 298 posts · 268 votes
6y

I would definately consult an attorney

4Reply
See this reply in the discussion

29 Replies

Jump to latestLatest
  • Frank Procopio
    Real Estate Agent · Naples, FL · Member since 2016 · 298 posts · 268 votes
    6y

    I would definately consult an attorney

    4Reply
  • Taylor L.
    Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    6y
    Originally posted by @Frank Procopio:

    I would definately consult an attorney

    Agreed. It's lawyer time. Fair housing courts generally don't look favorably on "I didn't know." It would be well worth getting educated on the federal and local laws as well, to be sure you're compliant with the other laws as well.

    3Reply
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    6y

    @Alex Tokmazeyskiy the proper response is always that you accept section 8 if you are in Cook County. You also then say you take the first qualified applicant... 

    If you have a fair housing complaint then you definitely need to speak with an attorney. 

    4Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    6y
    Originally posted by @Alex Tokmazeyskiy:

    I posted an ad stating "No Section 8" and received a discrimination complaint for it. Ad has been taken down already a few weeks ago. Due to long process and apartment being vacant i just did not want to deal with long process. How should i Respond in writing? I did not know that in Chicago you are not allowed to state No Sec 8 in the ad. Any suggestions ?

     Section 8 is a protected class in cook county, so that is a fair housing violation.  You are going to need to talk with a lawyer



    https://www.enterpriseesquire.com/blog/2018/12/17/illinois-landlords-cook-source-income-discrimination-fair-housing-chicago


    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    1Reply
  • Dick RosenPro Member
    Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
    6y

    At this point you definatly need an attorney but in the future I recommend that you don't exclude Section 8 but you do consider Section 8 as a portion of their income and they must still meet your income requirements. Also as someone else stated you can still take application but it's first qualified, first served.

    1Reply
  • Johann Jells
    Rental Property Investor · Jersey City, NJ · Member since 2011 · 1k+ posts · 876 votes
    6y

    As stated, lawyer up, you're in for a ride. NEVER EVER tell someone a reason for rejecting them unless you absolutely have to. Never tell someone they're the 1st to see the place, so you can say you have a previous application. Unless you're still on the market weeks from then you're good.

    I'm not absolutely certain of my footing on my usual S8 response, but it a variant of what already said. "I take the first qualified tenant  Since the unit isn't currently inspected by the city and approved for S8, and that can take a long time especially if it fails something, it's unlikely it will still be vacant when approved." Do I have anything wrong here?

    1Reply
  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    6y

    I'm not in Chicago, but I agree with the above. "Never discriminate about legal source of income". If you have made the mistake about pushing away tenants because of it, then consult an attorney. Get someone to protect you. Make a specific criteria for renting your property (Credit score, DIR, No evictions, Criminal convictions etc) and stick with it. 

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    6y

    @Johann Jells - that would be illegal in Chicago.  But as mentioned above it is a protected class here

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    0Reply
  • Johann Jells
    Rental Property Investor · Jersey City, NJ · Member since 2011 · 1k+ posts · 876 votes
    6y
    Originally posted by @Brie Schmidt:

    @Johann Jells - that would be illegal in Chicago.  But as mentioned above it is a protected class here

    Ok. Can you explain how it was go? Assuming the owner is forced to sign a lease, do they move in before the inspections or does the owner need to hold it empty for them till it passes inspections? The only section 8 I ever had was inherited and fortunately they moved out within a reasonably short time.

    0Reply
  • Alex Tokmazeyskiy
    OP
    Buffalo Grove, IL · Member since 2020 · 25 posts · 9 votes
    6y

    I was told that owners have to wait untill it passes an inspection that can take weeks and then lease can be signed.

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    6y

    @Johann Jells - but here it is a protected class, so you are essentially saying that you will not take someone because the program takes too long. That can be perceived as a fair housing violation.  Not all jurisdictions have it as a protected class.

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    0Reply
  • Johann Jells
    Rental Property Investor · Jersey City, NJ · Member since 2011 · 1k+ posts · 876 votes
    6y
    Originally posted by @Brie Schmidt:

    @Johann Jells - but here it is a protected class, so you are essentially saying that you will not take someone because the program takes too long. That can be perceived as a fair housing violation.  Not all jurisdictions have it as a protected class.

    I understand 'protected class', but that doesn't explain how it would go, as I asked. Is the landlord forced to sign a lease in the absence of an approval for the unit? Do they not get paid until it passes? Are they subject to fines if it doesn't pass? Do the S8 tenants move in immediately to a 'unacceptable' unit, or do they wait until it passes? 

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    6y
    Originally posted by @Johann Jells:
    Originally posted by @Brie Schmidt:

    @Johann Jells - but here it is a protected class, so you are essentially saying that you will not take someone because the program takes too long. That can be perceived as a fair housing violation.  Not all jurisdictions have it as a protected class.

    I understand 'protected class', but that doesn't explain how it would go, as I asked. Is the landlord forced to sign a lease in the absence of an approval for the unit? Do they not get paid until it passes? Are they subject to fines if it doesn't pass? Do the S8 tenants move in immediately to a 'unacceptable' unit, or do they wait until it passes? 

    I have no idea, I have never had a section 8 tenant apply before.  But as soon as I post an ad in Chicago I get 3-5 people who immediately ask if I accept section 8 and when I reply "absolutely!" they don't respond anymore

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    2Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    6y
    Originally posted by @John Warren:

    @Alex Tokmazeyskiy the proper response is always that you accept section 8 if you are in Cook County. You also then say you take the first qualified applicant... 

    If you have a fair housing complaint then you definitely need to speak with an attorney. 

    Interesting. Are landlords in Cook County required to accept section 8? 

    0Reply
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    6y

    @Eric James technically we cannot discriminate against source of income, so yes, we have to accept section 8. Where my properties are located in the near western suburbs, I get many inquiries about section 8. I tell them all the same thing which is that of course we accept section 8 but that we screen all tenants the same way. I don't get applications because, to be honest, most of them are not moving as fast as the market rate tenants do. The market rate tenants are normally looking to sign a lease to move in within a few weeks or less, so I have personally never run into issues being "forced" to accept section 8. 

    2Reply
  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6y

    I have one section 8 tenant. When asked, I never say I do not accept section 8, I only tell them the unit is not approved, but I would accept it. I agree with @Brie Schmidt most of them I never here from.  It does take time to go through the process and it’s reliant on the future tenant to work with their case worker.  I then contact the section 8 case worker to confirm that offices process.  Each office should be the same, but there are different procedures from office to office.  If the tenant comes to you in mid July, most likely the lease won’t start until September 1. If it’s early in July or the end of June there is a chance you can start the lease August 1.   Could you find another tenant faster probably.  Still have to screen them. Section 8 only qualifies them for the program.  My section 8 tenant has been fine.  We are heading into our second year.

    0Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    6y
    Originally posted by @John Warren:

    @Eric James technically we cannot discriminate against source of income, so yes, we have to accept section 8. Where my properties are located in the near western suburbs, I get many inquiries about section 8. I tell them all the same thing which is that of course we accept section 8 but that we screen all tenants the same way. I don't get applications because, to be honest, most of them are not moving as fast as the market rate tenants do. The market rate tenants are normally looking to sign a lease to move in within a few weeks or less, so I have personally never run into issues being "forced" to accept section 8. 

    Thanks. I wonder if sect 8 works differently there than where I live. Here landlords don't "accept' section 8. There is a process for the landlord and specific properties be approved for participation in section 8. So if you haven't been approved through that process the issue is that you can't accept section 8. 

    0Reply
  • Johann Jells
    Rental Property Investor · Jersey City, NJ · Member since 2011 · 1k+ posts · 876 votes
    6y
    Originally posted by @Brie Schmidt:

    So you think they're testing you? Why would the authorities do more than one? Or can individuals sue you for this and they're drumming up victims for their lawsuit business? 

    0Reply
  • Johann Jells
    Rental Property Investor · Jersey City, NJ · Member since 2011 · 1k+ posts · 876 votes
    6y
    Originally posted by @Kenneth Garrett:

    I have one section 8 tenant. When asked, I never say I do not accept section 8, I only tell them the unit is not approved, but I would accept it. I agree with @Brie Schmidt most of them I never here from.  It does take time to go through the process and it’s reliant on the future tenant to work with their case worker.  I then contact the section 8 case worker to confirm that offices process.  Each office should be the same, but there are different procedures from office to office.  If the tenant comes to you in mid July, most likely the lease won’t start until September 1. If it’s early in July or the end of June there is a chance you can start the lease August 1.   Could you find another tenant faster probably.  Still have to screen them. Section 8 only qualifies them for the program.  My section 8 tenant has been fine.  We are heading into our second year.

    The question is whether once a S8 applicant qualifies you must rent to them immediately and then get your unit approved, or hold it empty till you get approval. Brie seems to be saying in the latter case if you rent it to someone else during the approval process you are in violation.

    0Reply
  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6y

    @Johann Jells

    It’s all part of the process.  Once all paperwork is in order at the Housing Authority an inspection is conducted to approve the unit/building.  Mine passed the first time.  They will review your lease and make sure it complies with all of there standards.  You need cooperation from the future tenant and housing authority office.  At the end you sign a contract with the HA.  

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    6y

    @Johann Jells - There are fines and penalties associated with it as it is a fair housing violation.


    I don't know about your other comment about the timing of things, I have never had a fair housing violation 

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    0Reply
  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    6y
    Originally posted by @Alex Tokmazeyskiy:

    I posted an ad stating "No Section 8" and received a discrimination complaint for it. Ad has been taken down already a few weeks ago. Due to long process and apartment being vacant i just did not want to deal with long process. How should i Respond in writing? I did not know that in Chicago you are not allowed to state No Sec 8 in the ad. Any suggestions ?

    You're not allowed to discriminate period. It's more than just your ad. Here's what's going to happen. You could take the ad down, maybe succeed against the discrimination complaint but you will forever be on the radar. My suggestion: Establish an objective criterion for accepting tenants in writing. It must apply to everyone the same. Include that criteria in your ads. Let the criteria screen out applicants. One of the criteria can be the move-in date. Regarding the current discrimination complaint, I have no recommendation other than hire an attorney & plead for mercy.

    312-681-7487
    0Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    The OP is in Chicago, but I'd be interested to hear people's take on the following.

    TX Local Government Code Sec. 250.007 (a)

    Except as provided by this section, a municipality or county may not adopt or enforce an ordinance or regulation that prohibits an owner, lessee, sublessee, assignee, managing agent, or other person having the right to lease, sublease, or rent a housing accommodation to a person because the person's lawful source of income to pay rent includes funding from a federal housing assistance program.

    0Reply
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    6y

    You can only be in trouble if you intended to break the law.  Just say you weren't aware you were doing anything wrong and ask what to do.

    Remember, you are still able to deny anyone for not meeting any legal qualifications.  So, even if you made a mistake on this one thing, that doesn't mean you can't disqualify based on other legal reasons.

    0Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    Articles about TX being one of two states that protect landlords from charges of discrimination for not accepting section 8. The statute is the one I posted above. I don't see which is the other state.

    https://www.texastribune.org/2...

    https://texashousers.net/2017/...

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free