Received Discrimination Complaint! Now what?!

[Rob Lehmann]

I own a 3-family property in Massachusetts and use a property manager to handle nearly everything since I am currently out of the country. I've used this particular manager for 2+ years now and haven't received any complaints until now, but this one sounds like it could go poorly for me.

I received a letteryesterday from the MA Commission Against Discrimination. The letter is addressed to both myself and the property management company and alleges that the management company refused to rent the apartment to the complainant based on the fact that she wanted to use a Section 8 voucher. She made a complaint to South Coast Fair Housing, and they arranged independent testing to phone up and pretend to want to rent the property, and allegedly my management company told them that he is not accepting Section 8 vouchers as well. 

I've received the mail as if I am the one discriminating against these potential tenants. I've never told the manager I wouldn't be happy to accept section 8 vouchers, I have no knowledge of any of these tenants, and I haven't even been in touch with management concerning the property's vacancy. Now I am required to write and sign a formal position statement to be submitted to the MA Commission Against Discrimintation. Ugh....

My immediate questions are:

1. How much potential trouble am I personally in here? I didn't have anything to do with any alleged discrimination so can it really come back to me with a penalty?
2. Should I get a lawyer to craft my position statement?
3. Has anyone been through something similar and can provide a bit of insight into the process/procedures?

Beyond those questions, I was under the impression that to rent to Section 8 tenants my property had to qualify for Section 8. I've never gone through any Section 8 vetting, nor have I rented to a Section 8 tenant before. I really don't have any knowledge of housing vouchers or Section 8 tenants because this is my only property that would be considered by someone using a housing voucher so maybe I am just a bit misinformed. 

Any help you guys and gals can give would be much appreciated. I'm just a bit taken aback by this and am not sure the best course of action.

[Charlie MacPherson]

@Rob Lehmann This is (or could be) a very big deal. You need to get an attorney involved ASAP.

Look for someone through the Mass Bar Association who has a track record in defending these kinds of cases. 

https://www.massbar.org/public/lawyer-referral-ser...

My understanding is the same as yours - if a property is not inspected and approved by the local housing administration (the local authority that administers Section 8), then Section 8 renters are not able to rent there.

It's just a guess, but if your PM said something like "we don't rent to section 8", that could be the basis of the complaint.  It could have been that he meant to say "our units are not approved by Section 8", which would probably have been ok.

People who receive any kind of public assistance (Sec. 8, TANF, SSI, AFDC, etc), are a protected class in Mass.  You MUST not discriminate on that basis.

The following is from a handout I prepared for the Boston South REIA that met two nights ago:

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Quick Primer on Mass. Fair Housing Laws



As an investor, fair housing violations are one of the easiest ways to get yourself sued.

You need not even commit an actual violation. Just asking a question about a “protected class” is enough for a complaint to be filed.

For example, “Where are you from?” “Are you a veteran?” “How old are you?” are all lawsuit bait.

BE AWARE - the state employs “testers” who actively try to trap landlords, lenders and others into making discriminatory statements or taking discriminatory actions. 

The courts have already held that this does not constitute entrapment.

The best course of action is to treat all comers exactly the same. The same rental application, the same criteria for selection, the same rents, the same amenities included.

At the federal level there are 7 protected classes:

Race, Color, Religion, Sex, Handicap status, National Origin, Familial Status

Massachusetts has 15 protected classes. In addition to the 7 federal classes, this state adds:

Public Assistance (Sec. 8, welfare, SSI, TANF, etc), Sexual Orientation, Gender Identity and Expression (including transgender), Marital Status, Military or Veteran Status, Age (except 55+ communities) and Ancestry

You can discriminate against non-protected classes, like illegal drug users - but if it has a disparate impact on a protected class, it still may be subject to challenge.

If your unit is not de-leaded, you can still not refuse to rent to a family with kids under 6 years of age. You are required by both state and federal law to remediate any lead-containing products (paint, putty, etc) and obtain a de-leading certificate.

If you have a handicapped tenant or applicant, you may not refuse to rent a unit to him or her. You must also make reasonable accommodations for them. That would include things like wheelchair ramps, grab bars, hand rails, etc. 

The Related Companies, a property management company in Worcester were recently ordered to pay $75,000 in damages for exactly this kind of violation.

The bottom line is this - treat every single individual the same. Assume that every applicant is a “tester”, who is out to trick you into saying something lawsuit-worthy. 

Know the laws and be careful what you say, and you’ll be fine!

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I would ask your PM if they carry E&O. If they do, your attorney needs to talk with the E&O provider immediately.

I hope that's useful.