Tenant Refused to Certify Income for Federal Tax Credit Program

Landlord sued to evict rent-stabilized tenant for failing to certify her household income after landlord started receiving federal low-income housing tax credits (LIHTC). Landlord claimed that tenant's refusal to certify violated a substantial obligation of her tenancy. Tenant argued that this requirement was in conflict with Rent Stabilization Code (RSC) Section 2522.5(g), which required landlord to renew tenant's lease on the same terms and conditions as her expiring lease. Tenant's lease was last renewed in 2006. New landlord bought the building in 2010 through a referee's deed and signed a regulatory agreement with HPD. Landlord promised to restrict occupancy to low-income families at reduced rents for 50 years in exchange for the tax credits. The court found that the LIHTC didn't conflict with the RSC. Section 2522.5(g) states that a lease must be renewed on the same terms and conditions "except where the owner can demonstrate that the change is necessary in order to comply with a specific requirement of law or regulation to the building[.]" And landlord was required to obtain this information to document the number of low-income units in the building. Tenant failed to comply with landlord's notice to cure the tenancy violation and therefore could be evicted.

OLR, MM, LP v. Bracero: 43 Misc.3d 1215(A), 2014 NY Slip Op 50652(U) (Civ. Ct. Bronx; 4/10/14; Madhavan, J)