HPD Properly Terminated Building's Tenant Interim Lease Program

LVT Number: #28439

Tenant association entered into a tenant interim lease (TIL) program agreement with HPD in 2003. The program allowed tenants to form a low-income housing cooperative and eventually become homeowners provided that tenants follow certain obligations. HPD, in return, would renovate the property. If HPD was satisfied that tenants were properly managing the building, HPD would then create a Housing Development Fund Corporation, giving tenants the chance to buy shares in the building.

Tenant association entered into a tenant interim lease (TIL) program agreement with HPD in 2003. The program allowed tenants to form a low-income housing cooperative and eventually become homeowners provided that tenants follow certain obligations. HPD, in return, would renovate the property. If HPD was satisfied that tenants were properly managing the building, HPD would then create a Housing Development Fund Corporation, giving tenants the chance to buy shares in the building. In 2017, HPD sent the tenant association a termination letter for failing to comply with TIL program obligations. Tenants filed an Article 78 court appeal of HPD's decision. The court ruled against tenants. But tenants didn't comply with some of the basic TIL program requirements. This wasn't a hasty determination by HPD. After months of not submitting financial reports, among other things, the building was placed under a Corrective Action Plan (CAP). But the tenant association still didn't comply with TIL program requirements. Only one board member showed up for a final compliance review session even though HPD warned tenants that the agreement would be terminated if all board members didn't attend the meeting.

264 West 117th Street Tenant Association v. HPD: 59 Misc.3d 1227(A), 2018 NY Slip Op 50745(U) (Sup. Ct. N.Y. Co.; 5/4/18; Bluth, J)