HUD HODAG Apartments Are Rent Stabilized

Tenant complained of a rent overcharge and of landlord's failure to offer her a rent-stabilized renewal lease. Landlord claimed that tenant's apartment wasn't rent stabilized. In the late 1980s the building was rehabilitated with funding through the HUD Housing Development Grant (HODAG) program. Under the program, 20 percent of the building's apartments were reserved for lower-income tenants, with rents set by HUD. Landlord said that tenant's rent therefore should be calculated by Federal Housing Act requirements. The DRA ruled against landlord. Landlord appealed and lost. Landlord's participation in the HODAG program didn't exempt from rent stabilization apartments that would otherwise be stabilized. The building was subject to rent stabilization in 1969. The HODAG law became effective in 1983. Since the building already was rent stabilized, tenant was subject to rent stabilization. And there was an overcharge based on landlord's disregard of a DHCR rent reduction order that had frozen tenant's rent, which landlord ignored while continuing to collect rent increases from tenant.

1290 Grand Concourse: DHCR Adm. Rev. Docket No. WG610024RO (2/18/09) [3-pg. doc.]