Landlords Must Accept Section 8 Vouchers from Current Tenants

July 31, 2009

LVT Number: #22071

Two groups of existing rent-stabilized tenants sued landlords who refused to accept Section 8 vouchers. The first group argued that landlord violated Local Law 10 of 2008, which bars landlords from discriminating against tenants based on their lawful income source. The other tenant group argued that landlords’ actions violated the antidiscrimination language of the J-51 tax benefit program that gave landlords tax breaks. Landlord argued that Local Law 10 applied only to future tenants, and was otherwise preempted by federal and state law.

Two groups of existing rent-stabilized tenants sued landlords who refused to accept Section 8 vouchers. The first group argued that landlord violated Local Law 10 of 2008, which bars landlords from discriminating against tenants based on their lawful income source. The other tenant group argued that landlords’ actions violated the antidiscrimination language of the J-51 tax benefit program that gave landlords tax breaks. Landlord argued that Local Law 10 applied only to future tenants, and was otherwise preempted by federal and state law. Requiring landlords to accept Section 8 subsidies from current tenants who didn’t participate in the Section 8 program at the start of their tenancies would force landlords to change the terms and conditions of existing leases by requiring them to add a HAP contract. Landlords similarly claimed that J-51 didn’t apply to existing tenants that didn’t currently use Section 8 vouchers.

The court combined the cases and ruled for tenants. The court found that excluding current tenants violated both Local Law 10 and J-51 requirements against discrimination. The court said that it would be absurd to protect new tenants and not existing tenants.

Tapia v. Successful Management Corp.: NYLJ, 7/28/09, p. 34, col. 1 (Sup. Ct. NY; Friedman, J)

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