Landlords Can't Sue HUD for Claimed Violations of Housing Act

Landlords of Flatbush Gardens housing complex sued HUD. They claimed that they entered into separate but identical HAP contracts with NYCHA providing for their participation in the Section 8 program for certain apartments in the building complex, that they provided Section 8 housing according to the terms of their HAP contracts, but didn't receive corresponding Section 8 rent subsidy payments. They said that if certain units didn't meet HUD's housing quality standards (HQS), they weren't notified in a timely manner, and where units were repaired to meet HQS, the units weren't reinspected as required for reinstatement of Section 8 subsidies. Landlords claimed that HUD's failures caused NYCHA to be unable to properly administer the program and cost landlords more than $700,000 in back rent.

The court granted HUD's request to dismiss the case. Although the court had subject matter jurisdiction and landlords had standing to sue, they failed to state a claim. There is no private right of action under the federal Housing Act against HUD for claimed violations of the law. Landlords could pursue claims against NYCHA in state court for breach of contract, which they were doing.

Renaissance Equity Holdings LLC v. Donovan: No. 12-CV-1639, 2013 WL 2237547 (EDNY; 5/21/13; Block, SDJ)