Greystar, the largest apartment owner in the United States, has systematically refused to accept Housing Choice vouchers (better known as Section 8) in several states where that is illegal, according to complaints filed with state agencies and attorneys general by a national watchdog group Monday.
According to Housing Rights Initiative, “testers” trained by its organization have been calling Greystar offices around the country since October to inquire about available apartments. The testers posed as prospective tenants and asked if they could use housing vouchers to pay the rent. Time and again, they said, Greystar employees told them that vouchers would not be accepted, or imposed illegal requirements on using them.
Federal law makes participation in Section 8 voluntary, but numerous states require that landlords accept the vouchers. Housing Rights Initiative cataloged more than 100 violations of state fair housing laws by Greystar in Maryland, Hawaiʻi, New Jersey, Michigan, California and Virginia, as well as in Washington, D.C.
“Greystar has been committing mass civil rights violations at a scale unlike anything our organization has ever seen,” said Aaron Carr, executive director of Housing Rights Initiative.
In College Park, Md., a tester called Greystar about studio apartments listed on Knox Road for $1,910 per month. The tester asked about available units and what would be required to apply for them. Toward the end of the call, the tester told the Greystar employee that she had a Section 8 voucher, and asked if she could use that to help pay her rent.
“No, you wouldn’t be able to use it,” the Greystar employee said, according to a recording of the call shared with The New York Times. “We can’t accept any vouchers of any kind.”
In a statement, Greystar said the company provides training to its employees and expects them to comply with all applicable laws. “Greystar remains committed to fair housing practices in everything we do,” the company said.
Last December, Greystar agreed to a $24 million settlement with the Federal Trade Commission and the state of Colorado over deceptive advertising practices that did not include mandatory fees. Greystar said the agreement included no admission of wrongdoing and that its practice of advertising the base rent was fully consistent with long-standing industrywide practice.
Section 8 vouchers help eligible recipients — including low-income families, veterans and people with disabilities — pay their rent, with tenants spending a portion of their income each month and the voucher covering the rest. Many landlords have complained that the program’s paperwork and obligatory inspections are onerous. Legislation passed by Congress this month attempts to address this issue by making participation easier. Carr said that for large companies like Greystar that market themselves as offering luxury rentals, screening out vouchers can also be a way to exclude low-income tenants.
Families can wait for months or even years for a voucher to come through, Carr said, and they have to use them quickly. Unused vouchers generally expire after 120 days, so being rejected from an apartment can be a significant setback in finding an affordable home.
Brian Corman, a partner at Cohen Milstein, who represents the Housing Rights Initiative, said Greystar is not a small landlord unfamiliar with the law — the company manages more than 1 million units, according to the National Multifamily Housing Council, making it a powerful gatekeeper for the country’s housing stock.
“This is not a paperwork issue,” Corman said. “Denying housing because the family intends to use a voucher has real consequences on where families can live, where children can go to school, and whether people can achieve housing stability.”
Corman said the complaints were filed with state fair housing and civil rights agencies or with attorneys general, who have the power to investigate, enforce their states’ fair housing laws and potentially impose fines.
Carr said the buildings his group investigated were primarily in high-income neighborhoods where housing supply tends to be tight, like parts of Los Angeles; Ann Arbor, Mich.; and Arlington, Va. In areas with less competition for each unit, Carr said landlords are more likely to accept voucher tenants.
“We’re an enforcement agency, but enforcement is no panacea,” he said. “Other tools have to be used, and that includes a greater housing supply.”