Tenant's Subsidy Terminated for Income Fraud

February 8, 2013

LVT Number: #24618

HPD terminated tenant's Section 8 rent subsidy, finding that she fraudulently misrepresented her household income. Tenant filed an Article 78 court appeal, claiming that HPD's decision was arbitrary and unreasonable. The court ruled against tenant. There was substantial proof that tenant intentionally failed to disclosed over $93,000 in income over the course of four years. Tenant in fact admitted that she "significantly underreported" her income for several years.

HPD terminated tenant's Section 8 rent subsidy, finding that she fraudulently misrepresented her household income. Tenant filed an Article 78 court appeal, claiming that HPD's decision was arbitrary and unreasonable. The court ruled against tenant. There was substantial proof that tenant intentionally failed to disclosed over $93,000 in income over the course of four years. Tenant in fact admitted that she "significantly underreported" her income for several years. HPD reasonably considered and rejected tenant's claims that she didn't intentionally underreport her income, that she disclosed her income by submitting paystubs to HPD, that she informed HPD caseworkers of her undisclosed employment, and that HPD employees told her that she didn't have to disclose a second, legally obtained Social Security number.

Beckles v. Cestero: 2013 NY Slip Op 00389, 2013 WL 258182 (App. Div. 1 Dept.; 1/24/13; Mazzarelli, JP, Sweeny, Renwick, Richter, JJ)

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