Military Charged Lease Fees At Joint Base To Receive Refunds

NEWARK, NJ – The company that manages military housing at Joint Base McGuire-Dix-Lakehurst agreed to pay more than $62,000 to settle claims it illegally imposed early termination charges on servicemembers who terminated leases early because they were being deployed or transferred to another base, the Justice Department announced.

United Communities, LLC, a private company that manages the housing, has agreed to pay $62,501.78, a news release from the Justice Department said, in connection with the fees charged to 13 servicemembers who had been stationed at the base. The early termination charges ranged from $138 to $3,100.

Under the Servicemembers Civil Relief Act, servicemembers who have military orders transferring them to another location or deploying them overseas have the right to terminate residential leases without paying an early termination fee.

The Department launched an investigation into United Communities’ leasing practices after receiving a referral from Air Force Community Legal Services. U.S. Army Capt. Gregory Funk had sought to terminate his lease with United Communities after he received military orders to deploy to Qatar for up to 365 days as a part of Operation Inherent Resolve. United Communities agreed to release Funk from the remainder of his lease term, but required him to pay back the $899.20 lease incentive that he had received when he signed the lease because he had not completed the 24-month term of the lease.

The investigation revealed 12 other instances where SCRA-protected servicemembers were required to pay back their lease incentives.

Under the terms of the settlement, United Communities must pay a total of $45,001.78 in damages to 13 servicemembers. United Communities will also pay a civil penalty of $17,500 to the United States. In addition, United Communities must develop policies to ensure it complies with the SCRA, train its employees on the protections afforded by the SCRA, and report future SCRA-related complaints to the government.

"Members of the Army, Navy, and Air Force at Joint Base McGuire-Dix-Lakehurst, and servicemembers nationwide, have the right to terminate their leases without penalty when their military orders send them elsewhere," Acting Assistant Attorney General John Gore said.

"When the brave men and women of our armed services answer the call of duty, they should be confident that they and their families will receive every protection the SCRA offers," U.S. Attorney Craig Carpenito said.

The SCRA extends various protections to servicemembers to allow them to devote their entire energy to the national defense, in areas such as evictions, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments.

The SCRA also allows servicemembers to terminate their residential leases after entering military service or receiving military orders for a permanent change of station, deployment, or retirement. Landlords are prohibited from imposing an early termination charge on servicemembers who terminate their leases under the SCRA.

The agreement resolves a suit filed by the United States in the United States District Court for the District of New Jersey.

Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.

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