Court Vacates DOF Decision to Retroactively Recoup DRIE Credits from Landlord

NYC Department of Finance (DOF) issued a ruling in February 2016 that tenants' household improperly received both SCRIE and DRIE benefits and that DRIE benefits credited to landlord therefore must be retroactively refunded to DOF. Once the DRIE benefits were revoked, landlord sued to evict tenants for nonpayment of rent. Tenants then sued DOF to challenge the benefit revocation. The court ruled for tenants. One tenant had applied for and received SCRIE benefits. His wife applied for and received DRIE benefits. They were unaware that one household couldn't receive both benefits simultaneously. The court found it would be unfair to retroactively recoup DRIE benefits since tenants weren't informed by DOF of the prohibition against both benefits and weren't accused of wrongdoing. So the court vacated the portion of DOF's order that directed retroactive denial of the DRIE benefits.

Sung v. Jiha: Index No 100807/2016, NYLJ No. 1528718751 (Sup. Ct. NY; 5/16/18; James, J)