Landlord Must Continue to Accept Section 8 Subsidy After Lease Renewal

Rent-stabilized tenant sued landlord when landlord opted out of the Section 8 rent subsidy program after renewing tenant's lease. Landlord claimed that it was entitled to end its participation in the Section 8 program under federal law. The court ruled for tenant. Landlord appealed and lost. Federal limits on Section 8 participation are designed only to prevent endless leases. Tenant's lease otherwise was subject to rent stabilization and J-51 tax benefit laws. J-51 rules bar discrimination against tenants. In addition, a rent-stabilized lease must be renewed on the same terms and conditions as tenant's first lease. Tenant's first lease included a rider describing the Housing Assistance Program (HAP) agreement that landlord signed with HUD accepting Section 8 benefits. This provision became part of the terms of tenant's rent-stabilized lease.

Rosario v. Diagonal Realty LLC: NYLJ, 9/21/06, p. 34, col. 1 (App. Div. 1 Dept.; Mazzarelli, JP, Sweeny, Catterson, McGuire, Malone, JJ)