Tenant Claims HUD Must Approve Rent Charged
LVT Number: 9680
Landlord sued to evict tenant for nonpayment of rent. The building was rent-stabilized and its mortgage was guaranteed by HUD. Tenant claimed that the rent demanded was in excess of an amount approved by HUD. But rents in the building weren't subsidized by HUD. The court ruled against tenant and tenant appealed. The appeals court affirmed and ruled for landlord. There was no preemption order by HUD concerning this building. So the maximum legal rent was the stabilized rent charged. HUD wasn't required to approve tenant's rent because rent-stabilized rents are presumed to be reasonable. It is HUD's policy not to interfere with regulation of rents by the DHCR.
Second 82nd Corp. v. Vrionis: NYLJ, p. 25, col. 2 (4/7/95) (App. T. 1 Dept.; Ostrau, PJ, Miller, McCooe, JJ)