SF Court Order Affects Low Income Housing

SAN FRANCISCO, CA - A San Francisco Superior Court judge has granted an injunction against a landlord and real estate agent ordering them to accept federal housing vouchers in a case testing a city housing discrimination law.

Judge Ronald Quidachay last Friday granted a motion for an injunction ordering Lem-Ray Properties and agent Chuck Post to comply with a city ordinance prohibiting discrimination against tenants who use Section 8 housing vouchers.

City Attorney Dennis Herrera sued Lem-Ray Properties and Post in October, alleging that they were violating a 1998 city law making it illegal for property owners to refuse to accept federal, state or local subsidies to pay rent or to indicate in advertisements that they will not accept them.

Quidachay indicated in the injunction that Herrera appears likely to prevail in the lawsuit.

"Judge Quidachay's ruling should remove all doubt about the validity of San Francisco housing laws, and send a strong message to other would-be scofflaws from engaging in similar illegal conduct," Herrera said in a statement. "In the midst of a severe housing crisis, it is critical that we protect programs that offer San Francisco renters a fighting chance to stay in San Francisco."

Attorney Edward Singer, who represents Lem-Ray and Post, today said the lawsuit is about whether San Francisco has the right to require local landlords to accept the vouchers. "The state law specifically states that local governments are not allowed to regulate housing discrimination," Singer said.

"San Francisco has taken the position that they are and this is kind of a test case of that." Singer said his clients have already agreed they will not single out Section 8 tenants, but he plans to appeal the injunction. Section 8 vouchers, authorized by Section 8 of the Federal Housing Act and provided by the U.S. Department of Housing and Urban Development, subsidize private rentals for low-income people.

Qualifying families must pay 30 percent of the rent and the vouchers generally pay the rest. Singer said vouchers could be a good way to address housing affordability, but said the Section 8 program is designed in a way that requires landlords to sign restrictive contracts that can limit the rent they can charge or even cause rent payments to be suspended with little recourse.

In the lawsuit, Herrera alleges that Lem-Ray and Post, who was acting on Lem-Ray's behalf, refused to accept subsidies for properties at 935 Geary St. and 81 Ninth St. for at least a year between May 2013 and May 2014.

It lists 10 examples of online advertisements during that period stating that Section 8 vouchers would not be accepted.

The lawsuit also alleges violations of the state's unfair business practices law and a 2006 Superior Court injunction prohibiting Lem-Ray from violating any state or local laws. According to Herrera, Lem-Ray is part of the Lembi family real estate empire, which included CitiApartments and Skyline Realty.

Herrera filed suit against the family's businesses in 2006 alleging illegal business practices and tenant harassment at 30 different locations.

The city won a civil injunction in the lawsuit in 2011.

--Bay City News