Tenants Entitled to Renewal Lease with Section 8 Subsidy

Facts: Rent-stabilized tenants of J-51 building sued landlord, claiming that landlord didn't offer proper renewal leases. Tenants had received federal Section 8 rent subsidies. Federal law allows landlords to opt out of the Section 8 program when tenants' lease expires. Landlord claimed it didn't have to renew tenants' lease with the Section 8 subsidies. Tenants argued that they were entitled to continuation of Section 8. Court: Tenants win. Federal law governing Section 8 doesn't pre-empt city rent stabilization laws or J-51 tax law, which gives landlord tax benefits for maintaining affordable housing. Landlord's refusal to continue accepting Section 8 subsidies violated the J-51 law and rent stabilization law provisions that gave tenants the right to a renewal lease on the same terms and conditions as their expired lease.

Rosario v. Diagonal Realty LLC: NYLJ, 7/13/05, p. 18, col. 3 (Sup. Ct. NY; Madden, J)