Trial Needed to Determine Legal Rent

Landlord sued to evict tenant for nonpayment of rent. Landlord claimed that tenant owed almost $9,000 at the rate of $959 per month. Tenant claimed that there was an agreement between landlord and HPD preventing landlord from collecting monthly rent in excess of 30 percent of tenant's income. This meant that tenant's monthly rent would be $500 instead of $959. Tenant and her daughter moved into the apartment in 2009 under the city's Work Advantage program after living in an emergency shelter for victims of domestic violence. The program paid a monthly rent supplement on tenant's behalf for the first year of her tenancy. The city later sold the building under a deed that required that 30 percent of the units would be reserved for homeless families, 50 percent for low-income tenants, and 20 percent for moderate-income families at HUD's fair market rent.

In 2010, current landlord and the city signed an Amended and Restated Regulatory Agreement (RA) that distinguished between rents that could be charged for eligible homeless units and for other units. Since tenant had been referred to the apartment by the city, she claimed that she was an eligible homeless tenant. Landlord interpreted the RA differently and claimed that tenant's apartment wasn't an eligible homeless unit.

The court ruled for tenant, finding that her apartment was an eligible homeless unit under the RA. The RA stated that landlord must lease "not less than" 30 percent of the units to eligible homeless tenants. This was a minimum and tenant's unit was occupied by an eligible homeless tenant. But there was insufficient proof in the record to determine the legal rent. This depended on whether tenant was a "cooperating" or "noncooperating" eligible homeless tenant under the RA, and a trial was needed to determine the facts.

Parkway HDFC, Inc. v. McKee: 40 Misc.3d 1236(A), 2013 NY Slip Op 51320(U) (Civ. Ct. NY; 8/12/13; Kraus, J)