Landlord Must File Article 78 Petition to Challenge Unpaid Subsidies

Landlord sued NYCHA in Civil Court for breach of contract, seeking the recovery of unpaid federally funded Section 8 rent subsidies and consequential damages. NYCHA asked the court to dismiss the case, arguing that any challenge to a NYCHA decision must be made through an Article 78 proceeding in State Supreme Court. The court ruled for NYCHA, in part. In this case, NYCHA had suspended landlord's subsidies based on landlord's alleged failure to correct non-life-threatening violations of federal housing quality standards. Landlord basically claimed that NYCHA acted in an arbitrary and capricious manner by sending out an untimely notice of defects. As a result, landlord had no time to cure the defects and avoid suspension of housing assistance payments. But instead of dismissing the case, the court ordered that it be transferred to Supreme Court and that landlord purchase index number and "request for judicial intervention" forms at that court.

93 Ralph LLC v. NYCHA: 2013 NY Slip Op 23308, 2013 WL 5058735 (Civ. Ct. Kings; 9/3/13; Levine, J)