Owner Must File Holdover Proceeding Under HUD Regs

Facts: A site owner sued to evict a Section 8 resident for nonpayment of rent after the resident failed to meet recertification requirements for her rent subsidy. The resident asked the court to dismiss the case, claiming that it was procedurally improper.

Ruling: A New York court ruled for the resident.

Reasoning: HUD regulations don't permit the commencement of nonpayment proceedings. If the resident failed to recertify in a timely manner or mistakenly provided incorrect information resulting in the denial of rent subsidies, the owner must negotiate a repayment plan to recoup the money due. Then, the owner must start a holdover eviction proceeding based on material noncompliance with the lease. The nonpayment case must be dismissed because HUD regulations must be strictly followed.

• Riverdale Osbourne Towers Housing Associates LLC v. Martinez, February 2011