Property Owner Did Not Comply with Section 8 Conversion Process

A property owner sued to evict a resident for nonpayment of rent. The owner claimed that the resident owed back rent totaling more than $30,000. The resident asked the court to dismiss the case.

The owner bought the building from HUD in 2004 and signed a regulatory agreement stating that until all the necessary repairs were completed, the owner would not increase the rents. The resident paid $288 per month under Section 8 when the owner bought the building. But the owner claimed that the rent was $972 per month. The resident claimed that the owner was supposed to do paperwork to convert her Section 8 subsidy, but that the conversion process was delayed for three years because the owner did not submit the HUD forms to the New York City Housing Authority. The resident also claimed that the owner failed to make repairs.

The court ruled for the resident. The owner showed no proof to rebut the resident’s claims that it failed to comply with the conversion process or make repairs. The resident’s legal rent remained $188 per month. Since she paid the owner $215 per month for some period, she was entitled to a refund of $1,400 [437 Manhattan LLC v. Santos (12/7/09)].