Tenant Not Responsible for Unsubsidized Portion of Rent After Subsidy Terminated

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement, agreeing that she owed $5,600. Tenant later obtained an attorney and asked the court to vacate the settlement stipulation. The court ruled for tenant, vacated the judgment and warrant, and dismissed the case. Tenant had received a Section 8 subsidy, which was terminated in December 2010 before landlord brought the nonpayment proceeding. In general, absent a showing by landlord of a new agreement, a Section 8 tenant doesn't become liable for the unsubsidized portion of her rent even after the termination of the subsidy. Landlord argued that tenant's August 2012 renewal lease made her responsible for payment of the full lease rent. But this can't be considered a "new agreement." The Section 8 subsidy was a term and condition of tenant's rent-stabilized lease that had to be incorporated into any renewal lease. The lower court properly exercised discretion by vacating the settlement agreement that required tenant to assume responsibility for payment of rent that she wasn't required to pay under controlling case law.

1466 Holding Co. v. Sanchez: 40 Misc.3d 138(A), 2013 NY Slip Op 51404(U) (App. T. 1 Dept.; 8/27/13; Hunter Jr., JP, Schoenfeld, Shulman, JJ)