Housing Authority & Urban Redevelopment Agency v. Taylor

760 A.2d 362, 334 N.J. Super. 573, 2000 N.J. Super. LEXIS 377
CourtNew Jersey Superior Court Appellate Division
DecidedOctober 26, 2000
StatusPublished
Cited by1 cases

This text of 760 A.2d 362 (Housing Authority & Urban Redevelopment Agency v. Taylor) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Housing Authority & Urban Redevelopment Agency v. Taylor, 760 A.2d 362, 334 N.J. Super. 573, 2000 N.J. Super. LEXIS 377 (N.J. Ct. App. 2000).

Opinion

The opinion of the court was delivered by,

CONLEY, J.A.D.

Defendant, a public housing tenant of plaintiff Housing Authority and Urban Redevelopment Agency of Atlantic City (Authority), appeals an August 31, 1999, order entered in the Authority’s nonpayment of rent summary dispossession action. The order declares that “late fees, attorneys’ fees and court costs as set forth in Defendant’s lease with the [Authority] are deemed valid in this [575]*575summary dispossession action” and grants judgment of possession to the Authority as of a certain date in the event that defendant had not, by that date, made payment to the Authority of not only the back rent of $972, but also a late fee of $20 plus attorneys’ fees and court cost of $144.50. Defendant had previously deposited the back rent. Although there is nothing in the rather sparse record before us to show whether she paid the additional fees and costs totalling $164.50 so as to ward off the entry of the judgment of possession and issuance of a warrant of removal, we are informed by counsel that that money was deposited with the clerk of the court. Should we affirm the trial judge, the additional $164.50 will be turned over to the Authority; should we reverse, it will be returned to defendant. In either event, defendant will remain a tenant of the Authority.

This appeal then involves the Authority’s entitlement to the disputed late fees, attorneys’ fees, and court costs in the context of the circumstances before us. To crystallize exactly what the issue is, several concessions by defendant must be noted. Defendant does not dispute or raise any issue as to the existence and validity of the governing lease provisions which provide for late fees, attorneys’ fees, and court costs in the event of a nonpayment of rent and a summary dispossess action.1 Neither does defendant [576]*576contend that these lease charges are prohibited by the governing federal public housing law. But it is defendant’s position that payment thereof cannot, by virtue of federal law, be made a condition of the dismissal of a summary dispossess action. We disagree.

In a nonpayment of rent summary dispossess action, it is well recognized under our state law that if the tenant “before entry of final judgment, pay[s] to the clerk of the court the rent claimed to be in default, together with the accrued costs of the proceedings, all proceedings shall be stopped[,]” and the complaint dismissed. N.J.S.A. 2A:18-55; Housing Auth. of City of Wildwood v. Hayward, 81 N.J. 311, 316, 406 A.2d 1318 (1979). Even where the tenant is a public housing tenant, such accrued costs can include attorneys’ fees and costs where so provided by lease. University Court v. Mahasin, 166 N.J.Super. 551, 553-54, 400 A.2d 133 (App.Div.1979); Trenton Hous. Auth. v. Green, 118 N.J.Super. 544, 545-46, 289 A.2d 264 (App.Div.), certif. denied, 61 N.J. 159, 293 A.2d 389 (1972). See also Community Realty Management, Inc. v. Harris, 155 N.J. 212, 233-34, 714 A.2d 282 (1998).

Plaintiff, as a federally funded public housing authority, is subject to the applicable federal law and regulations. As we have said, defendant does not contend that the lease provisions for late fees, attorneys’ fees, and court costs are prohibited by or are inconsistent with that federal law. Indeed, the federal law recognizes that such lease provisions are permissible. See 24 C.F.R. 966.4(b)(3) (“Late payment penalties. At the option of the [public housing authority], the lease may provide for payment of penalties for late payment.”); 24 C.F.R. 966.6(h) (prohibiting lease provisions that require the tenant to pay attorneys’ fees or other legal costs arising from a legal action brought by the public housing authority even when the tenant prevails, but stating that the [577]*577“[p]rohibition of this type of provision does not mean that the tenant as a party to the lawsuit may not be obligated to pay attorneys’ fees or other costs if he loses the suit.”).

Nonetheless, it is defendant’s contention that, in a nonpayment of rent dispossess action, conditioning a public housing tenant’s legal right to avoid a judgment of possession upon not only payment of accrued back rent but the additional fees and costs that may have accrued by virtue of the governing lease provisions is violative of 42 U.S.C. § 1437a(a)(l).

That statute provides:

[A] family shall pay as rent ... the highest of the following amounts, rounded to the nearest dollar:
(A) 30 per centum of the family’s monthly adjusted income;
(B) 10 per centum of the family’s monthly income; or
(C) if the family is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the family’s actual housing costs, is specifically designated by such agency to meet the family's housing costs, the portion of such payments which is so designated.
[42 U.S.C. § 1437a(a)(1).]

As applicable to defendant’s lease, “tenant rent” is defined in pertinent part as “[t]he amount payable monthly by the family as rent to the PHA or [section 8] owner, as applicable....” 24 C.F.R. 5.603.2 See also 24 C.F.R. § 5.613 (defining “total tenant payment” as “the amount calculated under [42 U.S.C. § 1437a(a)(l) ]” and, in subsection (a)(2), exempting from “total tenant payment” for public housing tenants “charges for excess utility consumption or other miscellaneous charges....”).3

[578]*578The late fees, attorneys’ fees, and court cost at issue here are not defendant’s “total monthly rent” governed by the federal law. They are, rather, additional costs incurred by the tenant as a result of failing to pay the rent when due and/or prior to the filing of a summary dispossess action. There is nothing in the federal law that prohibits these additional assessments where they are otherwise authorized by state law and lease provisions. More to the point, there is nothing in the federal law relied upon by defendant that addresses the precise issue here, that is whether such otherwise legally incurred fees and costs can be made a [579]*579condition of the tenant’s payment obligations under state law so as to avoid entry of a judgment of possession.

Although dealing with a section 8 federal housing program and, therefore, different regulatory provisions, the Supreme Court’s decision in Community Realty Management, Inc. v. Harris, supra, 155 N.J. 212, 714 A.2d 282, is instructive. In Community Realty, the court concluded that attorneys’ fees sought by the section 8 landlord could not have been made a condition of the tenant’s payment to avoid a judgment of possession. Id.

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Related

Housing Authority & Urban Redevelopment Agency v. Taylor
796 A.2d 193 (Supreme Court of New Jersey, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
760 A.2d 362, 334 N.J. Super. 573, 2000 N.J. Super. LEXIS 377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/housing-authority-urban-redevelopment-agency-v-taylor-njsuperctappdiv-2000.