Landlord Challenges Change in Section 8 Inspection Standards

Landlord of project-based Section 8 building under contract with HUD sued HUD after HUD changed its building inspection standards and the building failed HUD inspection. Landlord claimed that HUD arbitrarily adopted different definitions of "decent, safe and sanitary" depending on the Section 8 contract involved. Landlord also argued that HUD's application of new inspection standards to terminate pre-1980 contracts violated HUD regulations. The court ruled for HUD and dismissed the case. The new regulations created two sets of inspection criteria for use in different circumstances and didn't differently define "decent, safe and sanitary." And it wasn't arbitrary for HUD to continue housing quality inspections in tenant-based Section 8 projects. Landlord's claim that HUD violated the regulatory Flexibility Act by misrepresenting that the new standards wouldn't have a significant impact on a substantial number of small Section 8 projects was untimely.

Valentine Props. Assocs. LP v. HUD: Index No. 05CV2033, NYLJ No. 1202489808456 (SDNY; 4/5/11; Sweet, J)