NYCHA Didn't Notify Receiver of Suspension of Rent Subsidies

October 10, 2012

LVT Number: #24376

NYCHA suspended Section 8 rent subsidies for 30 apartments in landlord's building. Landlord's receiver later sued NYCHA to recover $244,000 in unpaid subsidies, claiming that they were wrongfully suspended. The receiver never got notice of the subsidy suspension from NYCHA even though NYCHA was notified that the receiver had been appointed. NYCHA claimed that the receiver wasn't entitled to a portion of the restored subsidies based on failure to repair Housing Quality Standards violations in a timely manner.

NYCHA suspended Section 8 rent subsidies for 30 apartments in landlord's building. Landlord's receiver later sued NYCHA to recover $244,000 in unpaid subsidies, claiming that they were wrongfully suspended. The receiver never got notice of the subsidy suspension from NYCHA even though NYCHA was notified that the receiver had been appointed. NYCHA claimed that the receiver wasn't entitled to a portion of the restored subsidies based on failure to repair Housing Quality Standards violations in a timely manner. But NYCHA sent notice of the violations only to landlord, and not to the receiver. So NYCHA must pay the receiver the outstanding portion of the withheld Section 8 subsidies.

Coyle v. Rhea: Index No. 106555/201, NYLJ No. 1202569849913 (Sup. Ct. NY; 8/13/12; Schlesinger, J)

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