Family Member in HUD Section 8 Building Had Succession Rights to Tenant's Apartment

Apartment occupant complained to the DHCR that landlord refused to give him a renewal lease and that he had succession rights to tenant's apartment. The DRA ruled against occupant, finding he had failed to provide adequate proof that he was entitled to take over the apartment. Occupant appealed, and the DHCR revoked the DRA's decision. Landlord had filed an eviction proceeding against occupant, claiming that the apartment wasn't subject to rent control or rent stabilization because the building was financed by HUD with a mortgage held by HUD under the National Housing Act. The court agreed that the building therefore was exempt from rent stabilization under RSL Section 26-504(a)(1)(7a). The building's rents also were set under a Section 8 Housing Assistance Payments (HAP) assistance program. The court had so-ordered a settlement stipulation between landlord and tenant dated March 21, 2022, granting occupant "remaining family member" status, qualifying him for succession rights. Since the court had determined that occupant had succession rights, the DRA's order denying succession was reversed and revoked. 

Pridgen: DHCR Adm. Rev. Docket No. LU410015RT (11/21/23)[2-pg. document]