While applying for a commercial loan for a multi-family housing property I was turned down and one of the reasons given was that the property houses Sec. 8 tenants. Is this not redlining? With which agency should I lodge a complaint about this?

-- Lalitha Locker (lali@erinet.com), December 04, 2001

Answers

I'm not an attorney, and you ask a legal question, but two thoughts: (1) The rent that tenants pay seems like a reasonable consideration for anyone making a commercial loan; and (2) you should ask your local HUD office whether you have the basis for a Fair Housing Act complaint.

-- Bill Dedman (Bill@PowerReporting.com), December 04, 2001.

If you want to obtain multi-family housing, why are you applying for a "commercial" loan, this makes it difficult for you to file a complaint under the fair housing act. Try a residential loan. But you should contact your local fair housing council and explain your situation.

-- Lyonel LaGrone (lyonel65@hotmail.com), December 20, 2001.