Landlord & Tenant

Landlords' Due Process Claim Against Housing Authority Dismissed

35-41 Clarkson LLC v. New York City Housing Authority

NYLJ 12/7/12, p. 21, col. 3

U.S. Dist Ct., SDNY

(Castel, J)

In an action pursuant to 42 USC section 1983 brought by landlords participating in the Section 8 housing program, the New York City Housing Authority moved to dismiss. The court granted the housing authority's motion, holding that post-deprivation proceedings in state court were enough to protect landlord's property interests.

Landlords asserted that the housing authority suspends rent payments to participating landlords when it determines that the landlord does not comply with housing quality standards. The contracts landlord have with the housing authority gives a landlord the right to cure defects within 30 days of the inspection, but landlords contend that the housing authority, upon identifying violations, does not notify landlord in a timely manner, and fails to reinstate rent payments even after violations are notified. Landlords also complained that the housing authority has no grievance procedure for landlord to challenge these failures. Landlords argued that the housing authority's actions constitute a deprivation of landlords' property rights without due process of law.

In dismissing the complaint, the court first questioned whether the government contract between landlords and the housing authority created a property interest protected by procedural due process. The court, however, declined to resolve that issue because it concluded that post-deprivation judicial relief was sufficient to meet the requisites of due process. The court noted that landlord could bring an article 78 proceeding in state court to challenge the housing authority's decisions, and also might have a breach of contract claim in state court. Because landlord's interests were purely monetary, and the risk of erroneous deprivation is minimal, the court held that the availability of post-deprivation proceedings satisfied due process obligations.

Landlords' Due Process Claim Against Housing Authority Dismissed

35-41 Clarkson LLC v. New York City Housing Authority

NYLJ 12/7/12, p. 21, col. 3

U.S. Dist Ct., SDNY

(Castel, J)

In an action pursuant to 42 USC section 1983 brought by landlords participating in the Section 8 housing program, the New York City Housing Authority moved to dismiss. The court granted the housing authority's motion, holding that post-deprivation proceedings in state court were enough to protect landlord's property interests.

Landlords asserted that the housing authority suspends rent payments to participating landlords when it determines that the landlord does not comply with housing quality standards. The contracts landlord have with the housing authority gives a landlord the right to cure defects within 30 days of the inspection, but landlords contend that the housing authority, upon identifying violations, does not notify landlord in a timely manner, and fails to reinstate rent payments even after violations are notified. Landlords also complained that the housing authority has no grievance procedure for landlord to challenge these failures. Landlords argued that the housing authority's actions constitute a deprivation of landlords' property rights without due process of law.

In dismissing the complaint, the court first questioned whether the government contract between landlords and the housing authority created a property interest protected by procedural due process. The court, however, declined to resolve that issue because it concluded that post-deprivation judicial relief was sufficient to meet the requisites of due process. The court noted that landlord could bring an article 78 proceeding in state court to challenge the housing authority's decisions, and also might have a breach of contract claim in state court. Because landlord's interests were purely monetary, and the risk of erroneous deprivation is minimal, the court held that the availability of post-deprivation proceedings satisfied due process obligations.