A significant financial settlement has been reached in Montgomery County between landlord Allan R. Posner, his property management company ILJOR Properties, LLC, and the U.S. Department of Housing and Urban Development (HUD). They have agreed to pay $570,000 to resolve allegations of overcharging Section 8 tenants and engaging in sexually exploitative behavior, the U.S. Attorney's Office for the Eastern District of Pennsylvania announced.
Posner and his company were participants in HUD's Housing Choice Voucher Program, which assists low-income individuals and families in finding affordable private-market housing. They were accused of collecting higher rents from Section 8 tenants compared to unassisted ones, a clear violation of the program's rules. Posner, specifically, was involved in a reprehensible quid pro quo relationship with an unassisted tenant, where he reduced her rent in exchange for sexual favors – some of the Section 8 tenants ended up paying more than this tenant as a result, which formed the basis of the overcharging allegations.
"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. She added that their office is determined to "investigate landlords who take advantage of tenants and who overcharge the government under the Section 8 program."
Beyond the sexual misconduct, ILJOR Properties also demanded additional fees from assisted tenants for amenities like storage and laundry facilities, fees which exceeded those paid by unassisted tenants and were not outlined in the housing assistance payment contracts. In one case, a tenant who was supposed to pay only $4 a month toward her rent under the Section 8 agreement was charged an additional $25 monthly for a storage locker, a charge that later put her at risk of eviction over a $30 payment.
Rae Oliver Davis, Inspector General for HUD, condemned the exploitation of vulnerable individuals through these schemes. "Exploiting vulnerable individuals through sexual misconduct or overcharging HUD-assisted tenants is both reprehensible and abusive," Davis stated, asserting the ongoing commitment to hold such landlords accountable and maintain the integrity of HUD programs. The Inspector General's office has set up a hotline (1-800-347-3735) encouraging anyone who has experienced sexual harassment or illegal financial demands from a landlord as part of the Section 8 program to come forward.
The settlement includes repayment for the overcharged amounts and marks an end to an unethical episode that has highlighted the disturbing abuses some landlords will commit against tenants dependent on government assistance for secure housing. It also underscores the scrutiny required to ensure fairness and legality in the administration of federal housing programs.
