Imagine being a Section 8 real estate investor who purchased a promising property, only to have it overrun by squatters who refuse to leave. In this shocking real-life story, two landlords in Brooklyn, New York found themselves in a bewildering situation when squatters took over their Section 8 property. This tale serves as a stark reminder of the importance of understanding squatters’ rights and local property laws for Section 8 investors.
Squatters’ Rights in the Big Apple:
Squatters’ rights, which vary across states, can grant squatters similar legal standing as paying tenants if they have resided on a property for a specific duration, often exceeding 30 days. This transition, from trespassers to legal tenants, represents a significant shift in the legal process, and New York is an example of a state with stringent regulations regarding squatters’ rights.
The Unfortunate Tale of Two Section 8 Landlords:
Mohammed Chowdhury and Boyce Laurie, Section 8 real estate investors, purchased a multi-family property in Brooklyn, New York, with the intention of renovating it and renting it out to Section 8 tenants. However, their plans were thwarted by unforeseen circumstances, including the COVID-19 pandemic, which left them unable to attend to their Section 8 property for an extended period. During their absence, squatters invaded the property, and their numbers eventually grew to around 10 individuals.
Squatters’ Refusal to Vacate:
Upon their return to their Section 8 property, Chowdhury and Laurie were confronted with a disturbing situation. Squatters had taken over the premises and were living there illegally. The situation escalated as these squatters became hostile, refusing to vacate the property and even resorting to physical aggression when confronted by the property owners.
Astonishing Police Response:
Chowdhury and Laurie, understandably, called the police for assistance. To their bewilderment, the NYPD refused to remove the squatters and advised the owners to address the matter in civil court. The NYPD’s refusal stemmed from the 30-day threshold that granted squatters legal tenant status in New York. This legal status necessitated a formal eviction process, leaving the property owners in a nightmarish situation.
Financial Woes for Section 8 Property Owners:
As squatters occupied their Section 8 property, Chowdhury and Laurie faced a mounting issue of fines imposed by the Department of Buildings. These fines continued to accrue, despite the property being occupied by squatters who hindered essential maintenance. By the time the legal eviction process commenced, the property owners were burdened with over $400,000 in fines.
Long and Grueling Eviction Process:
The property owners embarked on the lengthy eviction process, which included serving squatters with a 30-day notice of termination. Subsequently, a summary eviction proceeding and a formal eviction proceeding were initiated. Squatters were well-versed in exploiting the system to their advantage, prolonging the process.
A Final Blow:
As the squatters were finally removed, the Department of Buildings issued another $5,000 fine. Their reason: one of the squatters had illegally converted the garage into a bedroom. Incredibly, the property owners continued to be penalized despite their best efforts to reclaim their Section 8 property.
The Heavy Financial Toll:
Ultimately, the property owners found themselves in dire financial straits, owing over $500,000, including fines and outstanding taxes and utilities. They decided to sue the city in an attempt to alleviate this staggering burden.
Conclusion:
The shocking saga of these two landlords serves as a cautionary tale, emphasizing the need for Section 8 real estate investors to familiarize themselves with local squatters’ rights and property laws. While squatters’ rights are designed to protect tenants, their exploitation can lead to grave consequences for property owners, including Section 8 landlords. As this story shows, ignorance of these rights can result in financial and legal nightmares.
Understanding the local laws governing squatters’ rights in the areas where you plan to invest as a Section 8 landlord is crucial. It may even influence your choice of investment locations. To avoid experiencing a situation like that of Mohammed Chowdhury and Boyce Laurie, thorough research and knowledge of property laws are essential prerequisites for any Section 8 real estate venture.