Project-Based Section 8 Building Wasn't Subject to Rent Stabilization

Landlord sued to evict project-based Section 8 tenant for violating her lease because she continually refused to supply information concerning her household composition and eligibility factors. Tenant claimed that she was rent stabilized and therefore couldn't be evicted for noncompliance with income and household certification requirements. The court ruled against tenant and awarded a judgment of possession to landlord.

Tenant appealed and lost. Although landlord's regulatory agreement with HPD required it to register each building apartment in accordance with the Rent Stabilization Code, the agreement also specified that HUD preempted the entire field of rent regulation as it applied to the building project and that, as long as the Housing Assistance Payments (HAP) contract for the building remained in effect, the building was exempt from rent stabilization. The building was subject to a mortgage insured or held by HUD, and landlord received Section 8 housing assistance for the apartment. The building wasn't subject to rent stabilization even if registered with the DHCR. The DHCR agreed with the court's opinion.

5th & 106th St. Assoc., LP v. Hunt: Index No. 570641/19, 2020 NY Slip Op 20286 (App. T. 1 Dept.; 11/2/20; Edmead, PJ, Higgitt, McShan, JJ)