Judgment Against Subsidized Tenant Set Aside Based on Fraud

June 30, 1997

LVT Number: 11565

Landlord sued to evict tenant for nonpayment of rent. Landlord claimed that tenant didn't pay rent after tenant's HUD rent subsidy was terminated. Tenant claimed his subsidy was improperly terminated. The court ruled for landlord, and tenant appealed, claiming fraud and misrepresentation on landlord's part. Landlord had stated in court that tenant had made false statements to HUD to get rent subsidy. Tenant showed that HUD had only investigated tenant but had never made a finding that tenant's actions were fraudulent. The appeals court ruled for tenant and dismissed landlord's petition.

Landlord sued to evict tenant for nonpayment of rent. Landlord claimed that tenant didn't pay rent after tenant's HUD rent subsidy was terminated. Tenant claimed his subsidy was improperly terminated. The court ruled for landlord, and tenant appealed, claiming fraud and misrepresentation on landlord's part. Landlord had stated in court that tenant had made false statements to HUD to get rent subsidy. Tenant showed that HUD had only investigated tenant but had never made a finding that tenant's actions were fraudulent. The appeals court ruled for tenant and dismissed landlord's petition. Tenant showed that landlord had misrepresented facts, resulting in an erroneous ruling that tenant's HUD subsidy was properly terminated.

Bedford Gardens Co. v. Ausch: NYLJ, p. 27, col. 4 (6/17/97) (App. T. 2 Dept.; Kassoff, PJ, Chetta, Patterson, JJ)

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