Tenant of Formerly HUD-Subsidized Unit in Yonkers Claims Overcharge

Landlord of a Yonkers building sought permission to proceed with the eviction of tenant who claimed she was overcharged. Tenant had filed a separate overcharge claim with the DHCR, which was pending before the DRA. The DRA terminated the eviction case for as long as the overcharge proceeding remained undecided.

Tenant appealed and lost. Tenant pointed out that she was a senior citizen whose monthly rent was increased by $700 after HUD decided to initiate a foreclosure sale of the building. HUD had advised tenants in 2008 that the building must be maintained as affordable rental housing for 20 years, that the building would be sold with the continuation of a project-based Section 8 Housing Assistance Payments contract, and that any buyer would have to make building repairs and, if needed, relocate tenants. In addition, a 2019 letter from landlord advised tenant that neither HUD nor the City of Yonkers subsidized the apartment any longer, that tenant had no current lease, and that landlord extended tenant a courtesy in the form of a below-market affordable housing monthly rent of $1,550. The DHCR noted that the issues raised in the underlying eviction proceeding were the same as those raised in the pending rent overcharge proceeding. Tenant and landlord would have a full opportunity to present all their claims and defenses in the overcharge case.

Butler: DHCR Adm. Rev. Docket No. KM910037RT (3/15/22)[2-pg. document]