Tenants in HUD/HPD Housing Can't Pursue Untimely Rent Increase Objection

Tenants of a privately owned affordable housing project challenged in federal court the regulatory approval of rent increases 10 years earlier by HUD and HPD. The District Court (EDNY) dismissed the case in March 2020, finding that tenants lacked standing to bring a claim under the Administrative Procedures Act to challenge HUD's process for approving landlord's rent increase application. The court also found that tenants' claims were time-barred, and that their claims against the City of New York and NYCHA also were untimely, and not saved by the continuing violation doctrine.

Tenants appealed and lost. They were time-barred under federal law and regulations. Their claims arose no later than April 2011, when they learned that rent increases imposed in 2008 were attributable to HUD's approval prior to consideration by HPD, and based on decoupling expenses that tenants weren't given notice of.

DeSuze v. Ammon: 990 F.3d 264, NYLJ No. 1615386780 (U.S. Ct. App. 2d Cir.; 3/9/21; Nardini, J)