Tenant Needn't Return Overpaid SCRIE Benefits

LVT Number: 10272

Tenant appealed SCRIE Program's ruling which revoked his SCRIE benefits retroactive to 1986. The court ruled for tenant, finding that he shouldn't have to return overpaid benefits. Tenant's SCRIE benefits were revoked in 1986 because he was no longer income eligible. Notice was sent to tenant and landlord, but apparently neither ever received it. Landlord continued to accept a lower rent from tenant and to receive tax abatements until the error was discovered in 1992. SCRIE billed landlord, and landlord in turn billed tenant $22,000 for the overclaim.

Tenant appealed SCRIE Program's ruling which revoked his SCRIE benefits retroactive to 1986. The court ruled for tenant, finding that he shouldn't have to return overpaid benefits. Tenant's SCRIE benefits were revoked in 1986 because he was no longer income eligible. Notice was sent to tenant and landlord, but apparently neither ever received it. Landlord continued to accept a lower rent from tenant and to receive tax abatements until the error was discovered in 1992. SCRIE billed landlord, and landlord in turn billed tenant $22,000 for the overclaim. The court found that tenant had the right to rely on landlord's conduct and that of SCRIE program in continuing to give him the exemption during the period in question.

Coccaro v. Stupp: NYLJ, p. 26, col. 1 (12/19/95) (Sup. Ct. NY; Goodman, J)