HPD Improperly Terminated Tenant's Section 8 Rent Subsidy

In 2005, tenant was arrested in his apartment after a police search. He was indicted, but the charges were later dismissed and the record sealed. In the meantime, landlord had obtained copies of the record and sent them to HPD. Landlord asked HPD to terminate tenant's Section 8 rent subsidy. HPD did so. Tenant submitted to HPD a timely request for a hearing, but no action was taken. Landlord then sued to evict tenant for nonpayment of rent. Tenant sued HPD and landlord to stop the eviction proceeding.
The court ruled for tenant. There was no reasonable grounds for HPD to terminate tenant's rent subsidy solely because he was once indicted for a crime and the charges were later dismissed. HPD violated its own procedures by basing its actions on a sealed record and not giving tenant a hearing. The case was dismissed, tenant's Section benefits were reinstated retroactively, and HPD was ordered to hold a hearing to give tenant a chance to contest the reasons stated in the notice of termination of his benefits.

Diaz v. Donovan: NYLJ, 7/15/08, p. 26, col. 1 (Sup. Ct. NY; Tingling, J)