Albuquerque and Roswell landlords accused of overcharging Section 8 tenants reach settlement

by Fulton Watch News Feed

NEW MEXICO (KRQE) – Two landlords of properties located in Albuquerque and Roswell paid more than $10,000 each to settle allegations that they charged low-income tenants more than the amount permitted under HUD’s Housing Choice Voucher Program, commonly known as Section 8.

The Section 8 program, which is administered by local housing authorities throughout New Mexico and the country, provides a government subsidy to help low-income individuals secure housing. The tenant’s share of the rent is determined based on their ability to pay.

In the Albuquerque case, landlord Santana Ortiz allegedly demanded excess rent payments from his tenant for more than four years, totaling $5,217. As a result of the lawsuit, Ortiz paid $12,000 to settle the allegations.

In the Roswell case, the government alleges that apartment complex operator Turnaround Properties overcharged a low-income Section 8 tenant for twelve months, collecting $832 in excess rent. Turnaround did this despite notices from the Eastern Regional Housing Authority about lawful rental levels, according to the Department of Justice. As part of the settlement, Turnaround paid $30,000.

“Low-income families, the elderly, and the disabled deserve dignity in housing,” U.S. Attorney for the District of New Mexico, Alexander Uballez, stated in a news release. “That is why Section 8 secures for them the right to decent, safe, and sanitary dwellings. When predatory landlords steal from both the taxpayers and the most vulnerable, we will stand with low-income New Mexican tenants to levy substantial sanctions against those who prioritize profit over people.”

In these cases, the nonprofit organization New Mexico Legal Aid filed whistleblower suits in federal court. The U.S. Attorney’s Office then took over the cases, conducted investigations, and negotiated settlements with the landlords. “The results…

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