Landlords Can Sue NYCHA for Failing to Process Rent Increase Applications

Nineteen landlords sued NYCHA. In their Article 78 mandamus proceeding, they claimed that NYCHA arbitrarily delayed or refused to even acknowledge receipt of, routine requests for rent increases available under the Section 8 rent subsidy program. The court ruled against landlords and dismissed the case, finding that NYCHA's management of Section 8 rent increases was a discretionary act and not subject to mandamus relief.

Landlords appealed and won. The court ruled that landlords stated a claim to the extent that they sought to compel NYCHA to make rulings on their applications. NYCHA doesn't have the discretion to not process landlords' requests. Landlords claimed that some rent increase applications dated back to 2008, and NYCHA hadn't even responded. They claimed $350,000 in damages for 175 Section 8 apartments over a four-year period. Landlords also claimed that NYCHA withheld rents for failing to make repairs long after the repairs had been completed. The court reinstated the case, which landlords could pursue.

Flosar Realty LLC v. NYCHA: Index No. 102799/12, NYLJ No. 1202720371367 (App. Div. 1 Dept.; 3/10/15; Friedman, JP, Renwick, Moskowitz, Richter, Manzanet-Daniels, JJ)