Along with Legal Service NYC as co-counsel, Jenner & Block secured a settlement with the New York City Housing Authority, requiring the public housing agency to reform its rent adjustment system to prevent wrongful evictions and benefiting more than 400,000 NYCHA residents.
The agreement ensures that thousands of NYCHA tenants will have their rents reduced if their incomes were to decline – a process required by federal law that has become more urgent during the pandemic. The settlement also enhances protections for low-income residents by requiring that NYCHA may not prosecute nonpayment or chronic rent delinquency cases until they first resolve interim rent reduction requests or rent grievances. The settlement comes after a group of twelve families, who have lived in public housing anywhere between five and 50 years, sued NYCHA in federal court alleging illegal rent overcharges above 30% of income and eviction proceedings for unlawful amounts of rent.
NYCHA has agreed to pay tenants close to $190,000 in damages, lawyers’ fees, and rent overcharge claims and has six months to implement changes to its system-wide operations concerning rent readjustments and eviction cases. NYCHA is also subject to monitoring by the federal court for three years.
To learn more about the plaintiffs and the settlement, click here.