Study: Subsidized tenants forced out

RCAP Solutions uncovers illegal tactics on part of landlords

By Owen Boss

GARDNER — The housing foreclosure crisis that has hurt homeowners across the country is also dramatically affecting regional low-income, subsidized housing tenants, according to a study RCAP Solutions conducted at the request of the Department of Housing and Community Development. The study revealed that of the 45 “Section 8” tenants affected in the region, 38 were forced to relocate. According to Kimberly Thomas, communications manager for RCAP, it is not the number of tenants being displaced that shocked her, it was the way in which they were being evicted, which she said included landlord attempts to bribe tenants through offering “cash for keys,” and the discontinuation of utilities such as electricity and water. “I had never heard the term ‘cash for keys’ before; I didn’t even know that was an option,” said Ms. Thomas. “What is happening is a lot of the tactics that these foreclosing entities are using to remove their tenants are actually illegal.” The report also included one instance where after constant harassment, a tenant was forced to file for a restraining order against the mortgage company and was awarded one from local law enforcement. Ms. Thomas said it is important to note that these foreclosures are affecting entire housing complexes, and are not confined to two- or three-family homes. “An important point is that this isn’t just two families, this is affecting four to six families at a time,” said Ms. Thomas. “And the problem is that these foreclosing entities will do anything to get the tenants out of there so that they can turn around and auction off the property.” One way RCAP is trying to help these tenants is through their Housing Consumer Education Center, which is focused on working with tenants living in buildings that have been foreclosed on. The center provides information that helps consumers make informed decisions about their housing situations, assists in housing searches, counseling, and points them in the right direction for legal aid so they will know their legal rights and get through the current crisis with as little stress as possible. Leah Donohoe, a housing counseling specialist for RCAP, said although the foreclosure crisis has greatly affected Section 8 tenants in the region, the implications on a national level could be just as dire. “We cover all of central Massachusetts, and this is definitely a nationwide problem,” said Ms. Donohoe. “We find that Section 8 tenants tend to survive foreclosures because they have a lot of legal protection because of their low incomes.” Ms. Donohoe said the state tends to pay special attention to keeping low-income, subsidized tenants in their homes, because without the support of the state, they would be unable to support themselves. “Putting these people out on the street would create a lot of homelessness in the area, because without the Section 8 support they just would not be able to afford their rent.” The completed regional survey results have been sent to the Office of Housing and Urban Development, and will be compiled so as to provide a comparison against the numbers statewide and on a national level. oboss@thegardnernews.com

Appeared on Page 1 on 7/17/2008 (Vol. 206 No. 168)