Was Tenant's HUD Rent Properly Deregulated?

Landlord sued to evict tenant for nonpayment of rent. The building contained subsidized affordable housing units, and HUD set rents for tenants there at a Below Market Interest Rate (BMIR) contract rent. Landlord had increased tenant’s rent at 7.5 percent annually for some time based on landlord’s claim that tenant failed to recertify her income some time ago. Tenant asked the court to dismiss the case, challenging the legality of the rent increases.  Landlord also asked the court to rule in its favor without a trial. The court didn’t rule for either side, finding that there were questions of fact requiring a trial. It was unclear whether tenant attempted to recertify. It was also unclear whether the HUD Handbook applied to the building at this point. There was also a question as to whether tenant had waived any right to object to the rent increases she had paid for a number of years.

Park Front Apts. LLC v. Peterson: Index No. 85352/2015, NYLJ No. 1202770151253 (Civ. Ct. NY; 9/15/16; Stoller, J)