fbpx

Oklahoma Bar Journal

A Home for the Brave in the Land of the Free: A Discussion About Unique Housing Challenges and Resolutions for Service Members and Veterans

By Teressa L. Webster

Abraham Maslow introduced the world to his “hierarchy of needs.” It is a pyramid that illustrates basic human needs, with the most important needs forming the base of the pyramid. Dr. Maslow identified shelter as a physiological need. Physiological needs are essential to human survival. When basic survival needs are unmet, most other human needs are unfulfilled.

As of September 2023, the population of the United States consisted of 2.86 million service members.[1] In 2020, roughly 18 million veterans lived in the U.S.[2] As of 2022, 244,334 veterans lived in Oklahoma.[3] As of December 2023, 18,737 active-duty service members and 20,300 National Guard and Reserve members call Oklahoma home. Excluded from those numbers are thousands of spouses and children who share in the sacrifices of the service members.

Undeniably, heroes live among us in large numbers and in plain sight. They beat insurmountable odds, and many bear visible and invisible scars from those victories. Yet, many battle housing challenges, including homelessness or the threat of homelessness. This is such an unequal return for their great sacrifices. “No person who has served this country should ever experience homelessness,” said U.S. Department of Veterans Affairs Secretary Denis McDonough.[4] Although they “should never have that experience,” unfortunately, many do.

THE SERVICEMEMBERS CIVIL RELIEF ACT (SCRA)

50 U.S.C.A. §3901, et. seq.

In 2003, President George W. Bush signed into law the Servicemembers Civil Relief Act (SCRA). The SCRA is an extension of the Sailors’ and Soldiers’ Civil Relief Act, which Congress enacted in 1940. The stated purpose of the SCRA is:

1) to provide for, strengthen, and expedite the national defense through protection extended by this chapter to servicemembers of the United States to enable such persons to devote their entire energy to the defense needs of the Nation; and 2) to provide for the temporary suspension of judicial and administrative proceedings and transactions that may adversely affect the civil rights of servicemembers during their military service.

50 U.S.C.A. §3902 (1)-(2)

The SCRA protects service members[5] and their dependents. Service members are individuals who are currently enlisted for service, reservists and veterans who are called to active duty and citizens who are serving with allied forces. The SCRA provides protections for mortgages and leases (as well as other contracts). The protections extend to obligations incurred before the service member entered active-duty military service and for a brief period after the active-duty service ends.

For mortgages, the SCRA requires courts to stay foreclosure proceedings in the interest of justice when a service member applies to the court and informs the court that the “servicemember’s ability to comply with the obligation is materially affected by military service.”[6] The SCRA also authorizes the court to adjust the mortgage obligation “to preserve the interests of all parties.”[7] Additionally, during military service, for mortgage obligations, the service member may request that a creditor limit the interest rate on the loan to 6% for all periods of military service and for one year after military service ends. When this occurs, the creditor must forgive any annual interest that exceeds 6% for all covered periods.[8] The creditor may not accelerate the loan for the forgiven interest.

For leases, the SCRA permits service members to terminate leases into which they entered before entering military service or after military service if there is a permanent change of station (PCS) order in effect. The SCRA also prohibits landlords from evicting service members and their dependents from their primary residences if the monthly rent does not exceed the housing price inflation adjustment, as established by the U.S. Department of Defense.[9] The SCRA also authorizes the court to adjust rental rates during covered periods to preserve the interests of all parties involved.

The U.S. attorney general and private individuals may enforce the rights guaranteed by the SCRA. Additionally, violators of the SCRA could be subject to misdemeanor consequences, including imprisonment and/or fines.

THE CHALLENGES

In her article, “The Financial Impact of Military Service,” Susan Keating wrote:

For veterans, there is a significant connection between financial problems and post-deployment adjustment issues including homelessness, incarceration, drug or alcohol abuse, physical aggression, and suicidal ideation. Money mismanagement (e.g. writing bad checks) is strongly associated with homelessness. Lack of resources to cover basic needs, as well as diagnoses of PTSD, MDD, or TBI can exacerbate these challenges.[10]

For many service members and veterans, housing problems are not always the result of money management problems. Consider the operation of the SCRA with respect to the cancellation of a residential lease. Under the SCRA, a service member may terminate a residential lease when that service member receives a PCS order or a deployment order for at least 90 days. However, the written notice is effective 30 days after the first date after the next rent due date. Depending on when the service member receives the order, they could be trapped in a residential lease with a rent obligation for 30 days longer than they can afford. Further complicating the situation are landlords who require waivers of SCRA rights. If enforceable, the waiver could trap a service member in a residential lease for months beyond their change order or deployment. This could impact the ability to obtain housing in their new location.[11] There are also landlords who refuse to honor SCRA lease terminations.

Similarly, many veterans face unique challenges with their housing resulting from service-related disabilities. Housing choices may be limited based on their disability-related needs. They are often victims of pretextual denials and evictions simply because landlords are unwilling to grant necessary accommodations – such as adjusting rent due dates to correspond with the receipt of disability benefits or adjusting pet policies to permit service and assistance animals.

Foreclosures equally present challenges for veterans. In her article, “Foreclosures Rates for All 50 States in March 2024,” Nora Epstein identified Nowata, Caddo, Garfield, Custer and Murray as the counties with the highest eviction rates in Oklahoma as of March 2024.[12] A combined total of 7,875 veterans are projected to live in these five counties.[13] In the article “Thousands of veterans face foreclosure and it’s not their fault,” Chris Arnold and Robert Benincasa reported about the Queens, an Oklahoma veteran family who was threatened with foreclosure after accepting a COVID forbearance for their VA-backed loan.[14] The report cited Kristi Kelly, a Virginia consumer lawyer, who stated, “The Department of Veterans Affairs has really let people down. The homeowners entered into COVID forbearances, they were made certain promises, and there were certain representations that were made, [a]nd the VA essentially pulled the rug out from under everybody.”[15] This is not just a national problem. It is an Oklahoma problem.

THE RESOLUTIONS

Education Is Key

Sometimes, landlords do not follow the law because they do not know it. Each year, Legal Aid Services of Oklahoma Inc. partners with one of the military bases in Oklahoma to provide training to private landlords about their duties arising under the SCRA, the Oklahoma Residential Landlord and Tenant Act (ORLTA)[16] and the Fair Housing Act (FHA),[17] 42 U.S.C.A. §3601, et seq. Some of the topics discussed include lease terminations under the SCRA, returning security deposits for service-related lease terminations and granting reasonable accommodations for disabled veterans. Knowledge is power, and these trainings equip landlords with the information they need to avoid costly penalties for violating these laws. Many Oklahoma housing advocacy organizations offer comparable free training.

Mortgage professionals should equally be aware of their duties arising under the SCRA. The SCRA applies to preservice mortgage obligations. Mortgage professionals should be trained to recognize to whom the SCRA applies, how to recognize a request made pursuant to the SCRA and the procedures of their organizations for processing SCRA requests. For example, when an active-duty service member requests an in-service interest rate reduction, a mortgage professional should recognize that the request is an SCRA request and know what steps to instruct the borrower to take to accomplish the goal.

Efforts by the Department of Veterans Affairs

In response to the veteran foreclosure crisis, the VA extended its moratorium on foreclosures through Dec. 31, 2024, to implement the Veterans Affairs Servicing Purchase (VASP) program. The VA estimates the VASP program will assist 40,000 veterans with avoiding homelessness. According to the VA:

Through VASP, VA will purchase defaulted VA loans from mortgage servicers, modify the loans, and then place them in the VA-owned portfolio as direct loans. This will empower VA to work directly with eligible Veterans to adjust their loans – and their monthly payments – so they can keep their homes. With VASP, these borrowers will have a fixed 2.5% interest rate, which will provide a consistent, affordable payment for the remainder of their loan.[18]

Legal practitioners who advocate for veterans facing foreclosure can assist their clients with accessing the VASP program.

The VA is also taking steps to assist homeless veterans with obtaining housing. The VA’s National Call Center for Homeless Veterans assists homeless and at-risk for homelessness veterans and provides solutions and agency connections to prevent veteran homelessness.[19] The VA, working with the U.S. Department of Housing and Urban Development (HUD), administers the HUD-Veterans Affairs Supportive Housing (HUD-VASH) program – a voucher program exclusively for veterans who are low income and at risk for homelessness. The HUD provides vouchers, while the VA provides supportive services and case management. The VA has a threefold mission statement for ending veteran homelessness:

  • Conducting coordinated outreach to proactively seek out Veterans in need of
  • Connecting homeless and at-risk Veterans with housing solutions, health care, community employment services and other required supports.
  • Collaborating with federal, state and local agencies; employers; housing providers, faith-based and community nonprofits; and others to expand employment and affordable housing options for Veterans exiting homelessness.[20]

These are the beginning of efforts.

Enforcement

The Department of Justice (DOJ) has embarked upon enforcing the SCRA against noncompliant housing providers. The DOJ is committed to ensuring that service members may exercise their rights guaranteed by the SCRA without undue burdens.

In January 2024, the DOJ initiated United States v. McGowan Realty, LLC, d/b/a RedSail Property Management (E.D. Va.).[21] In that case, the U.S. alleged that the landlord violated the SCRA by refusing to honor the service member’s residential lease termination notice, charging him early lease termination fees and additional rent. The consent order, which must be approved by the court, requires the landlord to pay the service member $10,225.65, a civil penalty of $3,000 and to provide SCRA training to all of its employees.

In October 2023, the DOJ initiated United States v. JAG Management Company LLC (D.N.J.) to enforce the SCRA for nine service members whose landlord required them to repay rent concessions they received at the initiation of their rentals.[22] The consent order requires the landlord to pay $41,581.95 to the service members and a $20,000 civil penalty, to adopt new SCRA policies and to obtain SCRA training.

In 2019, the DOJ initiated United States v. PRG Real Estate Management (E.D. Va.), asserting that the landlord violated the SCRA by obtaining default judgments against 127 service members without filing affidavits of military service and charging early termination fees for SCRA-related lease terminations to 10 service members.[23] The resulting settlement required the landlord to pay $1,490,000 to 127 service members as compensation for the unlawfully obtained default judgments and $34,920 to 10 service members who were charged early termination fees. The settlement agreement also required credit repair for the aggrieved service members, policy changes for the landlord and monitoring by the DOJ to ensure the landlord complied with the requirements of the SCRA.

In 2021, the DOJ and the Consumer Financial Protection Bureau made a joint statement. Assistant Attorney General Kristen Clarke of the DOJ Civil Rights Division stated: “The Department of Justice takes seriously its responsibility to safeguard the rights of servicemembers and veterans. While servicemembers carry the great burdens of this nation, they should not have to worry that their sacrifices will result in economic harm to their families. Mortgage servicers and landlords must ensure that they are in full compliance with federal laws intended to protect servicemembers and their families during military service.”[24]

The joint statement reminds mortgage professionals of their duties to comply with the requirements of the SCRA.

The HUD enforces the FHA, which protects disabled veterans (among others) from housing discriminatory practices related to their disabilities. The HUD administratively investigates complaints of housing discrimination and may work with the DOJ to judicially enforce the rights of disabled veterans to fair rental and lending opportunities.

PRACTICE TIPS FOR ASSISTING VETERANS WITH HOUSING DEFENSES

Always Do an SCRA Analysis

If the case involves a financial claim, find out if the veteran qualifies for protection under the SCRA for their own active-duty military service or as a dependent of a service member. Military service is often multigenerational. “Veterans are more than twice as likely as members of the general public to say they have a son or daughter who has served (21% vs. 9%).”[25] Also, do an SCRA analysis to determine if the veteran has tried to exercise rights under the SCRA without success. This analysis may result in a voluntary change in the housing provider’s position or judicial enforcement.

Analyze Rental Cases Under the ORLTA

The ORLTA has specific notice requirements that are conditions precedent to the termination of a lease. Regardless of whether the SCRA applies, the ORLTA applies to every lease in Oklahoma. The ORLTA requires all parties to act in good faith and mitigate their damages. Counterclaims that arise under the ORLTA are among the very few claims that may be raised in a forcible entry and detainer action.

Analyze All Housing Cases for Discrimination

The fair housing laws regulate most housing transactions. Disability housing discrimination has been unlawful since 1988 under federal law. Therefore, it is important for housing advocates to have a good grasp of these laws. Advocates should analyze cases to determine when to request reasonable accommodations, when to file an administrative complaint and when to file judicial actions.[26]

Be Aware of Other Resources

Know who your community allies are. If the veteran does not have a defense against nonpayment of rent, where in the community can you turn to assist the veteran with obtaining funds? The Department of Veterans Affairs may be a great resource for making good community connections to resolve rental and mortgage challenges.

CONCLUSION

Those who fight abroad for our freedoms should not fight at home for their homes. As legal professionals, we should work together to ensure that our bravest heroes have access to homes where they can peacefully access the freedom they sacrifice for all of us to enjoy.


ABOUT THE AUTHOR

Teressa L. Webster is the director of litigation for Legal Aid Services of Oklahoma Inc. (LASO). She received her J.D. from the Regent University School of Law in 2010 and her LL.M. from the Temple University Beasley School of Law in 2018. As a LASO attorney, Ms. Webster has devoted more than a decade to civil rights enforcement and housing defense. She also educates the public about housing rights and responsibilities.

 

 


ENDNOTES 

[1] https://bit.ly/3Pmc1yQ.

[2] https://bit.ly/3BOBhuB.

[3] https://bit.ly/3W3Jn9q.

[4] https://bit.ly/4gXO90i.

[5] The SCRA defines service member as “a member of the uniformed services, as that term is defined in section 101(a)(5) of Title 10 ... (Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard).” 50 U.S.C.A. §3911.

[6] 50 U.S.C.A. §3953 (b) (1)-(2).

[7] Id.

[8] 50 U.S.C.A. §3937 (a) (1)-(2).

[9] This information is available at https://bit.ly/3PlUSFx. For 2024, the monthly rental rate is $9,812.12.

[10] https://bit.ly/40j76VG.

[11] https://bit.ly/3VZey5V.

[12] https://bit.ly/3BUxyeU.

[13] https://bit.ly/3W5bfKx.

[14] https://bit.ly/4fP5EPf.

[15] Id.

[16] 41 Okla. Stat. §101, et seq.

[17] 42 U.S.C.A. §3601, et seq.

[18] https://bit.ly/3BRJ3Uw.

[19] 877-4AID-VET (877-424-3838).

[20] www.va.gov/homeless.

[21] United States v. McGowan Realty, LLC, d/b/a RedSail Property Management, Case 2:24-cv-00016 (E.D. Va.).

[22] United States v. JAG Management Company LLC, Case 1:23-cv-20809 (D.N.J.).

[23] United States v. PRG Real Estate Management, 2:19-cv-00125 (E.D. Va.).

[24] https://bit.ly/3BVlvhw.

[25] https://bit.ly/3W2FYrm.

[26] The federal Fair Housing Act, 42 U.S.C.A. §3601, et seq., prohibits discrimination in housing on the basis of race, color, national origin, religion, sex, familial status and handicap (disability). Oklahoma’s Discrimination in Housing Act, 25 Okla. Stat. §1451, et seq., protects individuals on all bases provided for in the federal law but additionally protects individuals on the basis of age, beginning at age 18. Both laws provide a private right of enforcement for aggrieved persons and also prohibit acts of retaliation for exercising protected rights.


Originally published in the Oklahoma Bar JournalOBJ 96 No. 2 (February 2025)

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.