Watertown Housing Authority v. McCormick

145 Misc. 2d 367, 546 N.Y.S.2d 929, 1989 N.Y. Misc. LEXIS 654
CourtWatertown City Court
DecidedOctober 12, 1989
StatusPublished

This text of 145 Misc. 2d 367 (Watertown Housing Authority v. McCormick) is published on Counsel Stack Legal Research, covering Watertown City Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watertown Housing Authority v. McCormick, 145 Misc. 2d 367, 546 N.Y.S.2d 929, 1989 N.Y. Misc. LEXIS 654 (N.Y. Super. Ct. 1989).

Opinion

[368]*368OPINION OF THE COURT

James C. Harberson, Jr., J.

WATERTOWN HOUSING AUTHORITY’S POSITION

When a low-income family otherwise qualifies for public housing, the rent paid for the rental unit is determined by 24 CFR 913.107 (42 USC § 1437a [a]). The Watertown Housing Authority (hereinafter WHA) is allowed to collect the highest amount of rent as determined by the formula.

24 CFR 913.106 (a) defines how annual income is determined when the Watertown Housing Authority calculates the rent due under 24 CFR 913.107. Pertinent to this case is the requirement that a temporarily absent spouse’s income must be considered as part of the total income from all sources including welfare assistance.

This latter income source defined at 24 CFR 913.106 (b) (6) includes

"(i) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities, plus
"(ii) The maximum amount that the Welfare Assistance agency could in fact allow the Family for shelter and utilities.”

The McCormick family welfare rent allowance calculated by the Jefferson County Department of social services is $147 per month when Mr. McCormick is a part of the family unit and is unemployed or absent. The amount is determined by the size of the rental unit. If this family unit acquired additional income from any source, they may still qualify for some welfare assistance. There would come a point where Social Services may withdraw the shelter allowance if this happens.

The WHA is allowed to review such a change in the financial resources of the family as provided for in 24 CFR 913.107 and 24 CFR 913.106 (a), (b).

In the case where a family has little or no income, the formula under 24 CFR 913.107 based on 24 CFR 913.106 (a), (b) will leave the highest amount due the WHA, the welfare housing allowance the Social Services Department has agreed to pay the WHA for the space being rented. As the family income improves and a higher amount can be realized under 24 CFR 913.107 (a) (1) (30% of adjusted gross income) or (2) (10% of the family’s monthly income), the WHA is entitled to that higher amount even if it exceeds the amount allowed for [369]*369the space by the Social Services Department housing allowance.

In the case where the annual agreement needs an interim rent adjustment under 24 CFR 913.109 (b), paragraph 5 a of the lease, the WHA is required upon notification of an increase in the tenant’s financial resources or a diminution of them to investigate so an upward or downward adjustment of the rent can be made.

Paragraph 5 a.2 of the lease requires the tenant to notify the WHA within 10 days if the family unit commences to receive welfare assistance or welfare assistance is terminated. Paragraph 5 a.l merely allows the tenant the right to show a change in circumstances that would justify a rent reduction without a time limit.

In the case covered by paragraph 5 a.l of the lease the lack of time limit of 10 days is based on the assumption the tenant would be in the best position as to when the family income change or other circumstances leading to a hardship situation has affected the ability to pay the current level of rent; whereas, in paragraph 5 a.2 the decision of a welfare agency to suspend welfare or allow it is forced on the family and the WHA needs the information to make an immediate review for rent adjustment.

Paragraph 9 of the lease outlines the procedure used when rent reviews are initiated by the tenant or the WHA. Notice to the WHA must be in writing to an employee or the office of WHA. (Form WHA-F-78 "Notice of Rent Adjustment.”) F-38 is used by the tenant to report income changes and/or going onto or leaving welfare. F-38 is the notice of the amount of any readjustment in the rent and the date it goes into effect.

24 CFR 960.209 (b) says "The family must comply with provisions in its lease regarding interim reporting of changes in income. If the PHA receives information concerning a change in the Family’s income or other circumstances between regularly scheduled reexamination, the PHA must consult with the Family and make any adjustments determined to be appropriate. Any change in the Family’s income or other circumstances that result in adjustment in Total Tenant Payment or Tenant Rent must be verified.”

Once this determination has been completed and verified, the WHA must recalculate the rent to determine the highest amount it can charge per 24 CFR 913.107 and adjust the rent accordingly.

[370]*370respondent’s position

The counsel for the respondents does not contest the structure of these procedures, but they decry the WHA actions in this case. The WHA has refused to conduct an interim rent adjustment review because the tenant did not notify them initially in writing for a request for review as provided for in the lease; and, once such a request was made, the WHA has rejected the request. The WHA as a result, has expected a higher rent payment than has been made by the Social Services Department and has sued for the arrears in the proceeding and for a warrant of eviction for nonpayment of rent. The respondents claim that any amount exceeding the welfare allowance for shelter is illegal because using the 24 CFR 913.107 criteria, the highest amount could only be the welfare payment. A review of the law and facts is instructive.

LAW

Public Law 93-383 was passed by Congress to consolidate provisions of bills involving housing and the "low-rent public housing program (which) goes back to the United States Housing Act of 1937 which provided the authority for the low-rent public housing program.” (Senate Report No. 93-693, 93rd Cong, 2d Sess Introduction, reprinted in 1974 US Code Cong & Admin News 4273.)

In the declaration of policy, the Congress recognized the importance of keeping the stock of affordable housing for the low-income citizens available by helping pay the fair rental value.

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Bluebook (online)
145 Misc. 2d 367, 546 N.Y.S.2d 929, 1989 N.Y. Misc. LEXIS 654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watertown-housing-authority-v-mccormick-nywatertcityct-1989.