Monday, April 12, 2021
Landlords

Landlord fined for renting subsidized apartment

Landlord

The settlement resolves allegations that Dmitry Royzman rented a subsidized apartment to his mother-in-law in violation of the HCVP requirements

A Bucks County landlord is expected to pay $128,000 to the federal government for allegedly renting a subsidized Section 8 apartment to his mother-in-law for 12 years, authorities said.

According to Acting United States Attorney Jennifer Arbittier Williams, the settlement resolves allegations that Dmitry Royzman rented a subsidized apartment to his mother-in-law between December 2008 and August 2020 in violation of the Housing Choice Voucher Program’s (“HCVP”) requirements.

In the settlement agreement, federal authorities allege that Royzman was a landlord in the HCVP, a program whereby HUD provides rental subsidies for eligible low-income tenants, Williams said.

Royzman allegedly submitted documents to the Bucks County Housing Authority, falsely certifying that the assisted tenant in Royzman’s rental property was not an immediate relative of the property’s owners, she said.

Royzman’s mother-in-law was the sole tenant, which precluded Royzman’s receipt of HCVP rental subsidies, Williams said. HUD instituted the HCVP program to help low-income residents without other options obtain decent housing.

Landlords who agree to participate in this program cannot manipulate it to give subsidized housing to their relatives. By investigating this case, we have put all landlords participating in the Section 8 program on notice that they cannot put relatives in apartments for which they are receiving HCVP funds.

The U.S. Department of Housing and Urban Development, Office of Inspector General is committed to working with the Department of Justice and community stakeholders to ensure that Federal funds intended to help low-income families are not wasted or misapplied, said Acting Special Agent in Charge Shawn Rice.

Today’s settlement underscores the government’s commitment to protecting the integrity of HUD programs against fraud, waste, or abuse, Rice said.

This case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General, and by the Bucks County Housing Authority. For the United States Attorney’s Office, Assistant United States Attorney Colin Cherico handled the investigation and settlement.

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