It’s unclear whether landlords face any penalties from state agencies for improperly evicting tenants while receiving rent relief dollars intended to help those tenants stay housed during the COVID-19 pandemic.
— alerted TDHCA this week that they have seen “alarming calls from constituents” whose rent relief money went to the wrong address, and called on the agency to fix the problem. Those constituents were told “they were unable to receive their eligible assistance” while the agency recouped the funds, the lawmakers wrote Thursday to TDHCA board Chair Leo Vasquez.
A collection of state and federal agencies — including the TDHCA — are tasked with looking into allegations of fraud, waste and abuse in rent relief programs. But none of the agencies contacted by the Tribune would say whether any landlord has been credibly accused of taking rent relief money and improperly ousting their tenants, or whether they have imposed penalties on landlords for doing so.
At the height of the pandemic in 2020, Gates, a 42-year-old Round Rock resident, saw her hours as a temp working in guest services at Austin-Bergstrom International Airport cut in half, and by January 2021 she was behind on rent for her two-bedroom apartment. In June, Gates said she lost her job after she missed a week of work because of a medical problem.
Despite that, the property manager told Musselman they wanted to proceed with the case, Gates said. Musselman sided with Gates’ landlord and granted the eviction. “In our view, the judge made a mistake letting the trial proceed as soon as [the property manager] confirmed that the owner had a pending application for rental assistance,” Stamm said in an email.
Attempts to reach the property owner — RDRH Holdings Inc., an Austin-based corporation — and its president were unsuccessful. Lee Reznicek, a property manager who oversees Gates’ former home for Austin-based Hill Country Property Management, declined to comment when reached by email. According to the program rules laid out in the agreement Gates’ landlord signed July 13 to receive the funds, if a landlord receives rent relief money after evicting the tenant, they’re supposed to send the money back to TDHCA within 10 days. As of Feb. 17, Gates’ former landlord hadn’t done so, Stamm said.
TDHCA operates the state hotline where complaints originate. If the agency finds the allegations are credible, it can refer the cases to the state auditor’s office, the Treasury’s inspector general or local law enforcement agencies. “TDHCA has taken very seriously the responsibility of helping Texas renters and landlords overcome the financial burden brought on by the pandemic,” Tirloni said.
Johnson’s landlord — a partnership owned by Mark Musemeche, a Houston developer — had already accepted more than $4,200 in federal money in August to pay four months of rent, according to a copy of Johnson’s rent ledger she provided to the Tribune. Around that time, Johnson said she caught COVID-19 and had to miss a month of work.
But Johnson’s victory was short-lived. The same day, her landlord told Johnson her lease wouldn’t be renewed when it expired the following week, she said. She said the past few months have been hard. Around the time of the eviction, Scott and her husband separated. He took the car, which made it difficult for Scott to hunt for work and shelter. Then she gave up her job at the Katy hospital to care once more for her youngest daughter.