Landlords Can Sue NYCHA for Failing to Increase Subsidies

Four landlords who participated in the Section 8 rent subsidy program sued NYCHA for breach of contract, and sought payment of increased rent subsidies they claimed were unpaid for apartments located in several Bronx buildings. Landlords claimed that NYCHA refused to pay rent increases that were authorized for 26 tenants under the Rent Stabilization Law and Rent Guidelines Board. They also claimed improper suspension of Section 8 subsidies for some other tenants. NYCHA didn't answer landlords' complaint, but asked the court to dismiss the case because landlords didn't commence any Article 78 proceedings against NYCHA decisions. Landlords pointed out that NYCHA hadn't issued any decisions that it could appeal. The court found that the claims must be brought in the context of an Article 78 proceeding to challenge NYCHA's actions and converted the case to an Article 78 petition. Contrary to NYCHA's claim, landlords' case wasn't time-barred because the right to receive increased rent subsidies was ongoing and landlords could assert an Article 78 mandamus claim based on NYCHA's alleged failure to perform its duty to decide their claims for increased rents.  NYCHA must answer the court complaint.

Citadel Estates LLC v. NYCHA: 2013 NY Slip Op 23029, 2013 WL 402913 (Sup. Ct. Kings; 1/30/13; Schmidt, J)