Greystar, the largest corporate landlord in the country, has been accused of refusing to accept Section 8 housing vouchers in California.
In a complaint filed to the California Civil Rights Department, the watchdog group Housing Rights Initiative identified 53 examples of Greystar offices and property managers in California saying they don’t accept the vouchers. The complaint was the result of a months-long investigation in which undercover operators posed as prospective tenants and recorded phone calls with Greystar employees to test their compliance with the law.
“During calls, our investigators asked questions any tenant would ask: utilities, rent, etc.” said Aaron Carr, executive director of Housing Rights Initiative. “Then at the end of the conversation, they asked the million-dollar question: ‘Do you accept rental assistance?’ Time and time again, the answer was no.”
The investigation spanned six states: California, Hawaii, Maryland, Michigan, New Jersey and Virginia, as well as Washington D.C. Nearly half of the violations were found in the Golden State, including 15 in L.A. and six in Pasadena.
“We’ve never uncovered this many violations against a single company,” Carr said, adding that the previous high was roughly 10 violations, while this investigation uncovered 114. “Greystar is the worst offender we’ve ever come across.”
In one instance, an investigator called Jardine Hollywood, an apartment complex located on De Longpre Avenue, asking about availability for two-bedroom apartments and whether Section 8 vouchers could be used to pay rent. In a phone recording shared with The Times, the Greystar employee said, “We don’t take any Section 8 vouchers at this building.”
In another, an investigator called Luxe Pasadena, a complex on Walnut Street, asking if any studios were available. When the conversation turned to Section 8, the employee said, “I was told we do not do that here.”
In a statement, Greystar said that the company “remains committed to fair housing practices in everything we do. Greystar provides training and expects our team members to comply with all applicable laws.”
The complaints center around the Fair Employment and Housing Act, a state law that prohibits landlords from discriminating against potential tenants based on things like race, gender, ancestry, citizenship, etc. In 2020, California added source of income to the list, meaning landlords can’t turn away a tenant if they’re planning to pay rent using a Section 8 voucher.
The Section 8 program is one of the country and state’s most powerful tools for fighting homelessness. Launched in 1974, it subsidizes rent for more than 2.3 million people nationwide, including more than 600,000 in California and 78,000 in L.A. Voucher holders typically pay around 30% of their adjusted income, and government agencies cover the rest of the rent.
Vouchers are extremely valuable, and the waiting list to get them is years-long. Carr said the discrimination is felt more acutely in places like L.A., where an ongoing housing crunch raises the stakes of finding a home.
“We find discrimination everywhere, but the highest rates of discrimination tend to be in the tightest markets,” Carr said, adding that the city’s lack of housing supply contributes to the problem as well.
Carr said he hopes the complaint leads to three things: Greystar abandoning the alleged discrimination; enforcement to ensure continued compliance; and reporting that identifies how many voucher holders are applying and accepted at Greystar properties.
Section 8 discrimination has become an ongoing battle since California made it illegal.
The law has led to hundreds of legal battles, including one woman who filed dozens of $100,000 lawsuits over the last year based on brief exchanges over Zillow, according to an L.A. Times review. In those cases, many defendants told The Times they didn’t understand the law.
However, Carr said Greystar doesn’t get the same excuse.
“They know better,” he said. “This is one of the most powerful, well-resourced real estate companies on earth. They have the best employees and the best lawyers, and they’re just choosing not to accept housing vouchers.”
Last year, Greystar settled a lawsuit accusing the housing giant of colluding to keep rents artificially high, agreeing to pay $7 million in fees and penalties.
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