Tenant Must Repay Tax Abatements

May 31, 2000

LVT Number: 14180

Tenant was a senior citizen who received SCRIE benefits. Landlord, in turn, received a tax abatement. After tenant died in 1992, her son continued to sign her name to annual renewals for the benefits. The City Department for the Aging discovered this five years later and directed landlord to refund $11,000 in tax abatements. Landlord appealed, claiming that it shouldn't be responsible for tenant's son's fraud and the city's error. The court ruled for landlord. The city appealed and won. It is the city's duty to recover the improperly paid benefits.

Tenant was a senior citizen who received SCRIE benefits. Landlord, in turn, received a tax abatement. After tenant died in 1992, her son continued to sign her name to annual renewals for the benefits. The City Department for the Aging discovered this five years later and directed landlord to refund $11,000 in tax abatements. Landlord appealed, claiming that it shouldn't be responsible for tenant's son's fraud and the city's error. The court ruled for landlord. The city appealed and won. It is the city's duty to recover the improperly paid benefits.

Shefa Estates Co. v. Johnson: NYLJ, 5/30/00, p. 22, col. 4 (App. Div.1 Dept.; Sullivan, PJ, Rosenberger, Williams, Wallach, Buckley, JJ)

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