Premises Subject to HUD Program Are Covered

The DHCR determined that landlord's building was subject to rent stabilization. Landlord appealed, claiming that the building became exempt from stabilization because of its participation in the HUD Section 8 Moderate Rehabilitation Program. The court sent the case back to the DHCR for reconsideration. The DHCR reviewed all possible government housing laws and again ruled against landlord. Federal law on Section 8 housing didn't pre-empt local rent regulation. The building wasn't subject to a HUD-insured or HUD-held mortgage, so federal law didn't bar rent stabilization coverage. There was no ETPA provision exempting Section 8 housing from rent stabilization. Although landlord pointed out a prior civil court decision finding another apartment exempt, that decision didn't apply to tenant's apartment and appeared to be incorrect.

Cosmopolitan Assocs.: DHCR Adm. Rev. Dckt. No. LC110036RP (10/23/97) [3-page document]