Yonkers HDFC Building Complex Was Exempt from Rent Stabilization

Ten separate tenants living at the Waverly Arms Housing Development of Yonkers complained to the DHCR of rent overcharge. The DRA ruled against each tenant, finding that the building complex was exempt from rent stabilization coverage. Tenants appealed and lost. In a decision covering each complaint, the DHCR affirmed that, under ETPA Section 2500.9(b), housing accommodations owned, operated, or leased by the U.S., NY State, or any political subdivision, agency, or public authority were exempt from rent stabilization. Here, the buildings were funded by HUD and leased to the owner to act as a contract vendee by the City of Yonkers under a Housing Development Fund Company (HDFC). The premises deed also showed that the City of Yonkers was the actual owner of the buildings. The complex was affordable housing governed by the NY State Private Housing Finance Law (PHFL). Rents for  the building were set and approved at all relevant times by HUD and the City of Yonkers. And although the NY PHFL allows the owner to incorporate the HDFC to administer the buildings on the city's behalf, the law didn't automatically bestow rent-stabilized status on the apartments. The 1971 Regulatory Agreement between the owner and HUD also made no reference to rent regulation or ETPA jurisdiction at any point in the future. 

Various Tenants: DHCR Adm. Rev. Docket Nos. LQ910027RT et al. (10/6/23)[4-pg. document]