Leaseholds

Landlords in Virginia have no duty to maintain in a safe condition premises under the tenant’s exclusive control

/ Leaseholds

Most states find landlords liable to tenants injured in leased premises if the landlord acted negligently. That rule impose a duty on the landlord to act reasonably to avoid dangerous conditions in the premises that are leased. State housing codes and the implied warranty of habitability also place duties of repair and maintenance on landlords whose breach can result in tort liability to the tenant if the landlord acted unreasonably and cause an unreasonable risk of harm. The Virginia Supreme Court however, held that state statutes that impose maintenance obligations on landlords did not intend to alter the common law immunity landlords previously enjoyed from negligence claims by tenants. Isbell v. Commercial Inv. Assocs., Inc., 644 S.E.2d 72 (Va. 2007). In contrast, innkeepers do have such duties since they have greater access to and control over the premises.

To avoid engaging in discrimination, Facebook changes its policy that had allowed advertisers for housing, employment, and credit to select which users could see their ads

/ Antidiscrimination Law, Fair Housing Act, Leaseholds, Mortgages, Real Estate Transactions

Responding to a lawsuit filed by the National Fair Housing Alliance and others that alleged discrimination against families with children, women, persons with disabilities, and on the basis of national origin, Facebook announced changes in its policies to avoid engaging in discriminatory advertisements. Brakkton Booker, After Lawsuits, Facebook Announces Changes to Alleged Discriminatory Ad Targeting, Mar. 19, 2019. See also Tracy Jan & Elizabeth Dwoskin, HUD is reviewing Twitter’s and Google’s ad practices as part of housing discrimination probe, Wash. Post, Mar. 28, 2019.

Fifth Circuit rules that landlord rejection of Section 8 housing voucher recipients does not violate the Fair Housing Act by imposing a disparate impact on the basis of race

/ Antidiscrimination Law, Fair Housing Act, Leaseholds

Persons in need of financial assistance to afford housing are in a variety of categories of persons protected by the Fair Housing Act. African Americans are more likely than white persons to be poor; women of all races are more likely to be poor than men; persons with disabilities are more likely to need government assistance than those who are temporarily abled; and children are much more likely to be poor than adults. It would seem easy to show that refusing to rent to persons who are eligible for and who receive housing vouchers from the federal government (so-called Section 8 certificates) causes a disparate impact based on race, disability, sex, and familial status that may be unlawful under the Fair Housing Act unless the impact can be justified by a sufficient strong business objective that cannot be achieved in a less discriminatory way. However, the 5th Circuit rejected a …

Fifth Circuit rules that landlord rejection of Section 8 housing voucher recipients does not violate the Fair Housing Act by imposing a disparate impact on the basis of race Read More »

Town can alter zoning law retroactively to prohibit Airbnb use

/ Leaseholds, Takings, Zoning

The Massachusetts Land Court has ruled that a town may amend its zoning ordinance to prohibit Airbnb use and that retroactive application of the new law to those who established Airbnb use before it was passed is lawful. The owner had no right to have the prior Airbnb use “grandfathered in” as a prior nonconforming use under state statutes. Styller v. Aylward, 2018 Mass. LCR LEXIS 194 (Mass. Land Ct. 2018).

City has no sovereign immunity from suit by its tenants when it leases land in a “proprietary capacity”

/ Leaseholds, Real Estate Transactions, Title Issues

Although cities enjoy sovereign immunity from suit when they act in a sovereign capacity, they can be sued by tenants of land they have leased when they act in a “proprietary” capacity. Wasson Interests, Ltd. V. City of Jacksonville, 2018 Tex. LEXIS 999 (Tex. 2018). Cities act in a governmental capacity (and are immune from suit) when they perform traditional government functions for the benefit of the public or when they act at the direction of the state. Here the court found that the leases were made  in a proprietary fashion (a) when they engage in acts solely for the benefit of those in the cities; and (b) when it had no obligation to lease the lots to private parties; and (c) it was not acting as a branch of the state when it leased the property.

Tenant can be evicted for allowing adult son to live with her

/ Leaseholds

A court has held that a tenant can be evicted for allowing her adult son to live with her when his name was not on the lease along with hers, making him an unlawful occupant. Atlantic Tambone Mgmt. v. Mejia, 2017 WL 4181374 (Mass. Dist. Ct. App. Div. 2017). The reason for the eviction also rested on the fact that the son had stolen a television that had been delivered to the building for another tenant, thus violating a lease provision that prohibited interfering with the quiet enjoyment of neighboring tenants.

Section 8 (housing voucher) tenants cannot be evicted without cause even if their lease term has expired and the landlord has opted out of the housing assistance program

/ Consumer Protection, Homelessness, Leaseholds, Real Estate Transactions, Restraints on Alienation

The Third Circuit has ruled that the federal statute, 42 U.S.C. §1437f(t)(1)(B), that gives Section 8 (housing voucher) tenants the right to “remain in their housing developments, even after their landlord has opted out of the federal housing assistance program,” gives them the right to stay unless just cause can be shown to evict have the right to remain even if the lease term has expired. Hayes v. Harvey, 2018 U.S. App. LEXIS 24848 (3d Cir. 2018).

Lease cannot transfer landlord’s right to receive rents to his daughter after his death because it is a testamentary transfer that does not comply with the formalities needed to create a will

/ Leaseholds, Wills and Inheritance

The MIssissippi Supreme Court held that a lease provision cannot transfer the landlord’s power to receive rents to his daughter after his death because that effectuates a testamentary transfer that must comply with the statute of wills to be valid, including all formalities such as two witnesses. Estate of Greer v. Ball, 218 So. 3d 1136 (Miss. 2017).

Commercial landlord can mitigate damages by selling the property rather than reletting it

/ Leaseholds

When the tenant breached the lease, the landlord had a duty to mitigate damages. That usually means making reasonable efforts to find a replacement tenant. However, the Nebraska Supreme Court has held that a commerical landlord fulfilled the duty to mitigate damages by seeking to sell the property rather than re-rent it. Hand Cut Steaks Acquisitions, Inc. v. Lone Star Steakhouse & Saloon of Nebraska, Inc., 905 N.W.2d 644 (Neb. 2018). The landlord’s rejection of offers to rent the property did not violate his duty to mitigate damages given his reasonable efforts to sell the property. That meant the old tenant was liable for the rents up until the property was sold.

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