HUD Handbook Is Binding

Landlord of HUD housing sued to evict Section 8 tenant for breaching her lease, after sending tenant a 10-day termination notice. Landlord claimed fraud because tenant supplied false income information that was used to determine her rent. Tenant asked the court to dismiss the case. She claimed that landlord didn't follow the HUD Handbook procedures to be used when fraud was suspected. Landlord argued that the HUD Handbook supplied guidelines but wasn't binding. The court ruled for tenant and dismissed the case. The court found that the HUD Handbook was binding. The handbook gave steps for investigating and resolving cases of suspected fraud before terminating a subsidized tenancy. Landlord was required to first investigate and then either confront tenant or get additional information from elsewhere for verification. Once the investigation was completed, landlord was required to notify tenant in writing and give tenant 10 days to meet with landlord to discuss landlord's claim. If the matter remained unresolved, landlord could terminate the tenancy. Once landlord complied with the above steps in the handbook, it could start a new case against tenant.

IMPAC Assocs. Redevelopment Co. v. Robinson, NYLJ, 8/17/05, p. 19, col. 1 (Civ. Ct. NY: Martino, J)