Landlord Must Refund Overcharge to Section 8 Tenant

LVT Number: 8191

Facts: A Section 8 tenant complained of a rent overcharge. The DHCR ordered landlord to refund overcharges to the public housing agency (PHA) that paid a portion of tenant's rent on tenant's behalf. Landlord appealed, claiming that the legal rent chargeable to a Section 8 tenant shouldn't be limited by rent stabilization, that tenant should be able to claim a rent overcharge since tenant's share of the rent was less than the lawful stabilization rent, and that the DHCR shouldn't be able to direct payment to PHA.Court: Landlord loses.

Facts: A Section 8 tenant complained of a rent overcharge. The DHCR ordered landlord to refund overcharges to the public housing agency (PHA) that paid a portion of tenant's rent on tenant's behalf. Landlord appealed, claiming that the legal rent chargeable to a Section 8 tenant shouldn't be limited by rent stabilization, that tenant should be able to claim a rent overcharge since tenant's share of the rent was less than the lawful stabilization rent, and that the DHCR shouldn't be able to direct payment to PHA.Court: Landlord loses. A Section 8 tenant is a party to the lease and, therefore, has standing to claim a rent overcharge; it would be irrational not to allow him to make the claim. Federal regulations require landlord to charge stabilized rents when tenants live in rent-stabilized apartments. It also was reasonable for the DHCR to direct payment to the PHA. Landlord charged $600; the legal rent was $400, and tenant paid less than $400 as his portion. The PHA was, therefore, paying the overcharge.

Matter of Mott: NYLJ, p. 25, col. 3 (8/24/93) (Sup. Ct. Nassau; Lockman, J)