Beware the Section 8 Housing Lawsuit Scam – Maine & Massachusetts Take Note

Since 1937, the Section 8 Housing Program has helped millions of Americans pay for rent and mortgage.

Yes, the program has helped millions of pay stay in an apartment or a home, but now the program is being weaponized by some.

The Section 8 Housing Program Lawsuit Scam

According to several real estate lawyers and podcasters, including the Iced Coffee Hour, some resourceful people are weaponizing the program through a new "scam".

How does the scam work?  Scammers look for home owners that are trying to sell their homes on real estate websites, like Zillow or Craigslist.  The scammer then calls or messages the homeowner/seller and asks if they accept Section 8.  If they say anything other than "yes" the scammer brings a lawsuit for discrimination against the seller.

While there are no federal regulations against refusing Section 8 funds, 19 states do have rules against refusing Section 8.  According to Nolo.com, two of these states are Maine and Massachusetts.

How do you protect yourself?  When you get a message or call like this, simply say "yes" and nothing more.  Saying "no" or anything else could lead to the scammers bringing a lawsuit against you.

The History of Section 8 Housing

According to the US Department of Housing and Urban Development, the federal housing assistance programs in the U.S. first began during the Great Depression as the government tried to help families struggling to find affordable places to live.

By the 1960s and 1970s, new programs were created to build more low-income housing and help people cover rising rent costs, including the early Section 236 program, where the people in charge of housing worked directly with landlords and tenants.

In 1974, Congress created the Section 8 Program after studies showed that many families were spending far too much of their income on housing, with renters typically paying about 30 percent of their income while the federal government covered the rest.

Over the years, Section 8 evolved through different voucher and rehabilitation programs before being streamlined into the Housing Choice Voucher system in 1998, which is still widely used today.

More recent updates expanded assistance for homeless veterans through the HUD-VASH program and modernized housing rules through the 2016 HOTMA law, which changed how income and eligibility are calculated.