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Court of Appeals Prohibits Section 8 Terminations
In Rosario v. Diagonal Realty, LLC (infra, p. 5), the Court of Appeals addressed an issue that has perplexed New York courts since Congress amended the section 8 housing program almost ten years ago: Can a landlord terminate its participation in the program at the expiration of a rent-stabilized lease? The Court of Appeals held that the rent stabilization code prohibits termination, and that federal law does not pre-empt the code.
Section 8 and Rent Stabilization
The federal section 8 program provides housing assistance to low-income families by issuing vouchers to eligible families. If a landlord is willing to accept the voucher, tenant pays rent based on ability to pay, and the voucher covers the balance of the agreed-upon rent. Federal law has never required landlords to participate in the section 8 program. Until the 1998 amendment at issue in Rosario, however, it was also clear that a New York landlord could not, at the expiration of a tenant's lease, elect to stop accepting section 8 subsidies on tenant's behalf.
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