NJ LANDLORDS MUST ACCEPT SECTION 8

[Erica L.]

This is just something I wanted to post because I think a lot of new investors can benefit from this… I love the BP forums and reading from all their experience. However, I HIGHLY suggest you do your own due diligence before taking ANYONES ADVICE.

I thought I read enough to understand that as long as your property wasn't already approved to accept the HUD vouchers (aka Section 8), you could just say that to prospective applicants and move on. I read countless times, it's your option whether or not you want to undertake the additional inspections that are required from HUD.

Well folks, in NJ THAT IS A FALSE STATEMENT - and now that I told a tenant just like that, I’m sorry this listing isn’t currently approved to accept the HUD vouchers - I have officially received a complaint from the Division of civil right saying that my statement was discriminatory and illegal based on the NJ Law against discrimination, as the HUD vouchers are to be considered lawful income….

You live and you learn, now I have learned and will pay for it… if anyone (IN NJ) has went through the same thing, any insight on how to proceed would be greatly appreciated… it’s already been filed and I have a docket number and all… I will be contacting several lawyers come Monday morning… just want to post and educate others, you REALLY need to know YOUR STATE LAW because they vary widely from state to state. I’ve already developed my plan of attack on all future listings, however, if anyone has anything to add of value, it’d be greatly appreciated…

Thanks in advance…. And NJ buy and hold investors - NEVER EVER say you can’t take the voucher…. Even if your unit isn’t currently qualified under the program - you can get stung if you say it to the wrong person…

🫶

[Clayton Silva]

That is super interesting.  While I do not currently invest in NJ, and I am not surprised, it is still good to know!  How bad was the fine?

[Erica L.]

Quote from @Clayton Silva:

That is super interesting.  While I do not currently invest in NJ, and I am not surprised, it is still good to know!  How bad was the fine?

Didn’t go through yet - max would be 10k but it seems most are 2500 - 5k for 1st offense. 😫 

[Clayton Silva]

Quote from @Erica L.:

Quote from @Clayton Silva:

That is super interesting.  While I do not currently invest in NJ, and I am not surprised, it is still good to know!  How bad was the fine?

Didn’t go through yet - max would be 10k but it seems most are 2500 - 5k for 1st offense. 😫 

 Are you serious? Holy cow that seems steep for a 1st offense!  I'm really sorry to hear that.  Any penalty or fine, can always be challenged, and it may be worthwhile to take that to a local claims court or something.

[Erica L.]

Quote from @Clayton Silva:

Quote from @Erica L.:

Quote from @Clayton Silva:

That is super interesting.  While I do not currently invest in NJ, and I am not surprised, it is still good to know!  How bad was the fine?

Didn’t go through yet - max would be 10k but it seems most are 2500 - 5k for 1st offense. 😫 

 Are you serious? Holy cow that seems steep for a 1st offense!  I'm really sorry to hear that.  Any penalty or fine, can always be challenged, and it may be worthwhile to take that to a local claims court or something.

Yea, today I read over previous cases and their outcomes were quite shocking… but hey, you live and learn. If I pay ~5k and stay optimistic, that’s paid for by the cashflow I get from my tenants (on that one particular property) in less than a year… I DEF wont make that mistake again… but hey, it could be worse. 🤷‍♀️ 😂 

[Mark F.]

I don't lease my own properties for this reason. I have a leasing agent who is an investor as well who's well versed in NJ discrimination laws. He informed me he would present all qualified tenants to me, involving S8, and I could pick the most qualified one. Sorry you have to go through this. Investing in NJ is a different beast.

[Tim J.]

Seems outrageous - since you say that you didn't give a hard "no", just that it is not inspected (yet).

[Erica L.]

Quote from @Mark F.:

I don't lease my own properties for this reason. I have a leasing agent who is an investor as well who's well versed in NJ discrimination laws. He informed me he would present all qualified tenants to me, involving S8, and I could pick the most qualified one. Sorry you have to go through this. Investing in NJ is a different beast.

I lease and manage several of my own properties and have (negligently) said this before (based on reading stuff other investors suggested - who probably aren’t even familiar with Jersey law). I guess I got lucky before, in that no one took it to the next level and reached out to the division of civil rights to formally submit a complaint. However, this lady was super annoying. She messaged me over and over about the property (even after telling her it wasn’t approved for HUD)…. So my last reply was what really got me. In an attempt to explain my rationale (and get her off my back), I said I wouldn’t want to go through the additional inspections and paperwork required from HUD when there was already so much activity on it as it…. And THATS what she filed on the complaint. My thing is, if they’re going to make it mandatory, they shouldn’t impose additional work/inspections for us. If it qualifies for the CO and registration for rental with the township, that should be enough…. I almost feel like it’s discriminatory upon landlords/property managers to make them do more work in order to accept a certain protected class… they want to be equal, let them be equal through and through, right?!?! 😩  

[Clayton Silva]

Quote from @Erica L.:

Quote from @Clayton Silva:

Quote from @Erica L.:

Quote from @Clayton Silva:

That is super interesting.  While I do not currently invest in NJ, and I am not surprised, it is still good to know!  How bad was the fine?

Didn’t go through yet - max would be 10k but it seems most are 2500 - 5k for 1st offense. 😫 

 Are you serious? Holy cow that seems steep for a 1st offense!  I'm really sorry to hear that.  Any penalty or fine, can always be challenged, and it may be worthwhile to take that to a local claims court or something.

Yea, today I read over previous cases and their outcomes were quite shocking… but hey, you live and learn. If I pay ~5k and stay optimistic, that’s paid for by the cashflow I get from my tenants (on that one particular property) in less than a year… I DEF wont make that mistake again… but hey, it could be worse. 🤷‍♀️ 😂 

 True but that seems...what is the term for when the penalty doesn't match the crime.  Like excessive penalty, I think there is a legal term for that. Good outlook and sorry to hear it!

[Arsen Atanasovski]

I always always say everyone is welcome to lease my properties! its the fair housing law. The only thing I can think of for not allowing or approving (section 8) is based on income, that has yet not hit the mainstream media of being discriminatory but nowadays moving more to a socialist path I can see in the future governing officials even pushing that into the law, and telling you how much rent to charge. let them come in and inspect the home, they find anything I revert back to my city inspections approving my property (As a Rental), I also revert back to no obligation to do any repairs to approve the voucher if I do not need or want to. Section 8 is sometimes tricky and you need to know exactly how they process workflow.