PHILADELPHIA, PA — Allan R. Posner, a landlord in Philadelphia, and his property management company, ILJOR Properties, LLC, have agreed to pay $570,000 to settle allegations of violating the False Claims Act. The violations occurred during their participation in the U.S. Department of Housing and Urban Development’s (HUD) Housing Choice Voucher Program (HCVP), known as “Section 8.”
The HCVP helps low-income families, elderly individuals, and people with disabilities afford safe housing in the private market. Landlords in the program must certify that they charge assisted tenants the same or less than unassisted tenants for comparable properties. They must also ensure they do not impose extra fees beyond what is specified in the housing contracts.
From January 1, 2017, through December 31, 2020, ILJOR charged Section 8 tenants more than unassisted tenants in similar properties. This included higher rents and additional fees not allowed under the HCVP rules.
One serious allegation involved Posner engaging in a prohibited sexual relationship with an unassisted tenant. He offered to reduce her rent in exchange for sex. The tenant complied out of fear of losing her housing. Consequently, Section 8 tenants paid more than this unassisted tenant, whose rent was regularly reduced.
“Quid pro quo harassment, where a landlord requires a person to submit to an unwelcome sexual request in exchange for housing, is illegal,” said Jacqueline C. Romero, United States Attorney for the Eastern District of Pennsylvania.
ILJOR also charged assisted tenants extra fees that unassisted tenants did not pay. These fees covered storage space, garage access, and laundry services. Such charges were not outlined in the housing assistance payment contracts.
In one case, a tenant identified as JS could only pay $4 a month for rent according to the housing authority. Despite this, Posner charged her $25 a month for a storage locker. When she could not make the payment, he threatened eviction. In another instance, he charged LR, an amputee who used a wheelchair, $125 a month for a storage unit in a basement. This fee was also not included in the housing contract.
Between January 1, 2017, and December 1, 2020, Posner collected over $38,000 in unauthorized fees from Section 8 tenants.
“Exploiting vulnerable individuals through sexual misconduct or overcharging HUD-assisted tenants is both reprehensible and abusive,” said Inspector General Rae Oliver Davis with the U.S. Department of Housing and Urban Development. “We will continue to partner with the United States Attorney to hold these landlords accountable, protect low-income households from sexual and financial predation, and promote the integrity of HUD programs.”
The U.S. Department of Housing and Urban Development Office of Inspector General and Assistant U.S. Attorney Erin Lindgren led the investigation.
The settlement resolves the allegations, but there has been no determination of liability.
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