Tenant Must Comply with Amended LIHTC Income Recertification Requirements

Landlord sued to evict rent-stabilized tenant based on a claimed violation of a substantial obligation of her tenancy. Landlord claimed that tenant failed to certify under the requirements of the Low Income Housing Tax Credit (LIHTC) program. Tenant was required to provide proof of income when she moved into the apartment in 1990. In 2016, landlord signed a new Regulatory Agreement with the NY State Housing Finance Agency, providing that landlord would receive federal low-income tax credits in exchange for restricting occupancy of the building to low-income families for reduced rents for the next 15 years. Tenant didn't provide income certification requested by landlord in connection with the Regulatory Agreement. Tenant argued that landlord couldn't, in effect, change the terms of her rent-stabilized tenancy.

But the court ruled for landlord. Tenant commenced her tenancy under a regulatory agreement and hasn't opted out of the benefits of the LIHTC program. In fact, she couldn't do so without submitting the very income certification information she was withholding. Tenant failed to cure a substantial obligation of her tenancy in a timely manner, and landlord was entitled to a judgment of possession. Tenant was given 30 days to avoid eviction by complying with the income recertification.

NSA 2015 Owner LLC v. Brown: 65 Misc.3d 1204(A), 2019 NY Slip Op 51499(U) (Civ. Ct. Bronx; 9/13/19; Tovar, J)