Some landlords got a piece of Texas’ $2 billion in rent relief money — and evicted their struggling tenants anyway

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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.

 

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They need to go to jail, pay damages to the renters and pay back every dime they got.

How is that not fraud? Prosecute these landlords up to jail time

par for the course, just like RogerW_CDJR gobbled up $1-2m in PPP relief

When GenocidistsOnParade are in charge, it's all about the money grab and telling those in need that they didn't do enough to pull themselves out of the hole. Even though THEY are the ones who dug it. LiarsCheatersThievesTraitors

Failed state operation - referring to entire USA. I bet the “wrong address” was part of the scam.

I hope y’all included Streetlane Homes and Roofstock in your investigation. They defrauded many residents in Houston Sunnyside. Including the state. Overcharged for move out expenses and kept overage from funds. Some tenants were due that money and never received it.

'COULD'?!

WealthySocialism the Republicans love Socialist $$ when it’s free handouts or bailouts for banks, WallStreet, businesses, & their mortgages & tax breaks & COVID business relief. Of course they won’t penalize those who took the money, kicked out tenants & raised the rents.

Blazer Real Estate Services is evil.

And this is surprising because

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