Landlord Must Pay Back Rental Assistance Issued in Error by OTDA LRAP Program

Landlord applied to the state's Office of Temporary & Disability Assistance (OTDA) in 2021 for rent payment covering tenant's apartment under the Landlord Rental Assistance Program (LRAP). This program was set up by the state to provide rental assistance during the COVID-19 pandemic. OTDA granted landlord $31,271 to cover back rent owed by tenant. But later, in 2023, OTDA issued a notice stating that an overpayment equal to the full amount of the benefits had been paid. OTDA asked landlord to return the money. Landlord appealed OTDA's initial decision and lost. Landlord then filed an Article 78 court appeal of the decision.

Meanwhile, later in 2023, OTDA issued a new notice stating that the LRAP grant had been issued in error and was rescinded. The reason for this was that the apartment rent amount exceeded 150 percent of the fair market rent for that unit size, in violation of LRAP's eligibility requirements. Landlord didn't file an administrative appeal of OTDA's second decision but continued to contest the first decision in its Article 78 appeal.

The court ruled against landlord. Because OTDA had issued a second, superseding determination, the Article 78 appeal of OTDA's first decision became a moot point. 

Vill. Ventura Assocs. LLC v. State of NY Office of Temporary & Disability Assistance: Index No. 157545/2023, 2025 NY Slip Op 30438(U)(Sup. Ct. NY; 2/4/25; Ally, J)