Highland Park Landlord Faces Discrimination Finding Over Income Rules for Section 8 Applicants

State civil rights investigators allege Highland Living LLC's minimum-income policy unlawfully excluded tenants using federal housing assistance.

The New Jersey Division on Civil Rights (DCR) has issued a Finding of Probable Cause against Highland Living LLC, alleging the property owner enforced a discriminatory income policy that effectively barred Section 8 voucher recipients from renting units at its Highland Park apartment complex, Attorney General Matthew J. Platkin announced Thursday.

The DCR’s investigation centers on claims that Highland Living violated the New Jersey Law Against Discrimination (LAD) by requiring prospective tenants to show monthly incomes equal to at least twice the rent amount, without properly accounting for federal rental assistance under the Section 8 Housing Choice Voucher Program.

“New Jersey’s strong civil rights laws protect every resident’s right to obtain safe, affordable housing without facing discrimination. Now more than ever, it’s imperative that we hold firm on our commitment to safeguard that right,” said Attorney General Platkin. “The enforcement actions announced today reflect our continued commitment to ensuring that no one is denied the chance to obtain an affordable place to live because of unlawful housing discrimination.”

According to the findings, Highland Living and its leasing agent rejected an applicant whose after-tax income of $1,232 per month did not meet the stated $3,800 income threshold for a unit renting at $1,900 per month. Although Section 8 assistance would have subsidized a significant portion of the applicant's rent, the landlord applied the same income standard across all applicants, which DCR alleges had a “disparate impact” on low-income renters reliant on government assistance.

The LAD prohibits housing discrimination based on lawful sources of income, which includes federal subsidies such as Section 8. DCR's analysis found that no Section 8 applicants at Highland Living Apartments between 2022 and 2024 were able to meet the minimum income criteria, reinforcing the agency’s conclusion that the policy had an exclusionary effect.

Furthermore, DCR concluded that Highland Living’s policy was not necessary to serve a substantial or legitimate business interest. Under Section 8 rules, recipients typically pay no more than 30% of their income toward rent, with the government covering the remainder. If a recipient's income decreases, the government contribution increases to ensure rent is still paid. DCR found that Highland Living had less discriminatory options available, such as applying income requirements only to the tenant's portion of the rent.

Although Highland Living reportedly credited the value of the Section 8 voucher as income during its calculations, DCR said this practice still failed to eliminate the discriminatory impact of the policy.

“For many New Jerseyans, rental assistance programs like Section 8 open critical pathways to finding affordable housing. But when housing providers apply minimum-income requirements to renters who receive rental assistance and fail to properly account for that rental assistance, their policies have the effect of denying New Jerseyans the chance to find safe, stable housing,” said Yolanda N. Melville, Director of the Division on Civil Rights. “Our civil rights laws prohibit discrimination against renters who receive government rental assistance, and we will continue our work to enforce this prohibition and combat unlawful minimum-income requirements that harm our residents.”

The Finding of Probable Cause does not constitute a final ruling on the merits of the case. Rather, it indicates that DCR has concluded its preliminary investigation and found sufficient evidence to suggest a violation of the LAD may have occurred. The next step is conciliation, where both parties may seek a voluntary resolution. If no agreement is reached, the case may proceed to a hearing before the Office of Administrative Law or be pursued in court by a Deputy Attorney General.