Landlord Who Had Children with Tenant Must Refund HAP Benefits

Landlord owned a two-family house and lived on the first floor. In 2001, landlord signed a housing assistance payment (HAP) contract with NYCHA based on the tenancy of a woman who lived with her two children on the second floor of the house. Starting in  2003, landlord and tenant had three additional children together, who also lived with tenant. Landlord received HAP payments for the tenancy until 2014. In 2015, NYCHA sued landlord for breach of the HAP contract based on his receipt of HAP payments. NYCHA argued that because of his parental relationship with three of tenant's children, landlord wasn't eligible to receive the HAP payments. 

The court ruled for NYCHA without a trial. Landlord appealed and lost. Landlord had a continuing obligation under the HAP contract to inform NYCHA of changes in his family composition that affected his eligibility for the HAP payments. He never certified that the family receiving the HAP benefits didn't include his children. And it was clear from the HAP contract that this obligation was continuing. So landlord was incorrect that this restriction applied only when tenant first moved into the house and had no relationship with landlord. And there was no mistake or delay by NYCHA that barred it from suing landlord to correct his error.

NYCHA v. Oakman: Index Nos. 452706/15, 11622A, 11622, 2020 NY Slip Op 03201 (App. Div. 1 Dept.; 6/4/20; Renwick, JP, Gische, Webber, Oing, Moulton, JJ)