What tenants need to know about NYCHA’s new rent adjustment process 

Legal Services NYC and pro bono partner Jenner & Block LLC reached a major settlement with NYCHA requiring the agency to pay our clients back all the rent they overcharged them (nearly $190,000 including damages and fees) and reform its entire rent adjustment system to prevent wrongful evictions and future overcharges— a settlement that will help NYCHA’s 400,000 tenants. NYCHA must start complying with the settlement on January 23, 2022 and for the next three (3) years.

What NYCHA tenants need to know:

• NYCHA must reduce tenants’ rents within 60 days after they request an “Interim Recertification” and document their loss of income.
• NYCHA cannot start a nonpayment eviction case, or a termination proceeding based on Chronic Rent Delinquency, until it has resolved Interim Recertification or Rent Grievance requests by tenants. This means that tenants cannot be evicted for not paying their old rent while they are waiting for NYCHA to calculate their new rent. 
• If NYCHA improperly starts an eviction case while an Interim Recertification or Rent Grievance are pending, it must pause the case until the new rent is calculated and any retroactive credits are issued. 
• NYCHA must issue clear notices and dated receipts at every stage of the rent adjustment process.
•  NYCHA must send a written notice to every household in January 2022 about the new procedures established by the settlement, and also add new information to its online portal and website.
•  NYCHA must audit its own projects to make sure that rent adjustments are completed accurately and on time and that management offices are complying with the Fields settlement. 
• NYCHA must provide regular training to staff on the new settlement procedures. 

Procedures governing Interim Recertifications and Rent Grievances  

• All Interim Recertifications must be documented from beginning to end, and NYCHA is required to issue a written decision resolving the request and providing its rationale for the decision either granting or denying the rent reduction. 
• NYCHA has 60 days to resolve Interim Recertification requests from the time that the tenant submits all documents in support of the request. 
• NYCHA cannot commence nonpayment (“NP”) or chronic rent delinquency (“CRD”) cases until it issues written decisions resolving Interim Recertifications or Rent Grievances. In general (further details in section V of the settlement), NYCHA may start these cases: 14 days after resolving the Interim Recertification; or 10 days after resolving the Rent Grievance (up to the borough level decision if the tenant appeals). 
• Prior to starting a NP or CRD, NYCHA must document in writing that the tenant does not have a pending Interim Recertification or a Rent Grievance. 
• Prior to serving a rent demand, NYCHA must make sure that the tenant does not have a pending Interim Recertification. 
• Upon learning that any NP or CRD case was improperly commenced during the pendency of an Interim Recertification or a Rent Grievance in violation of the settlement, NYCHA must discontinue or mark off calendar those cases until fully resolving the requests.

The stipulation period  

• Beginning on July 23, 2021, NYCHA has six (6) months to amend or create new regulations in order to comply with the settlement. Beginning on January 23, 2022, the Plaintiffs and the Court will monitor NYCHA’s compliance with the settlement for the next three (3) years.

Outreach, education, and training  

• By January 23, 2022, NYCHA must inform tenants of the new settlement procedures via notices, NYCHA’s online portal and NYCHA’s website.
•  NYCHA must update various internal forms (including the interim change form receipt, monthly rent statements, and rent change notices) to inform tenants of the new procedures and to remind them of their right to request an Interim Recertification if they experience a loss of income. 
• NYCHA must conduct regular training of new and existing staff during the Stipulation Period.

Quality assurance and reporting

• Beginning on January 23, 2022, NYCHA must monitor its progress with the major provisions of the settlement. At the conclusion of the first year of the Stipulation Period and every 6 months thereafter, NYCHA must share reports with the Plaintiffs revealing the results of the quality assurance measures.

Resources

• Fields V. Russ Settlement Press Release (2021)
• Fields V. Russ Filed Settlement (2021)
• Fields V. Russ Complaint (2020)
• Powerpoint: NYCHA’s New Rent Adjustment Process (2021) 
• NYCHA Notices to Tenants on New Rent Adjustment Process (2022)
  English, Spanish, Russian, Simplified Chinese, Traditional Chinese
  
  

For free legal help, call Legal Services NYC at 917-661-4500 Monday through Friday from 9:30 a.m. to 4 p.m. Learn more about our intake process here.

* The information does not constitute legal advice. You should always consult an attorney regarding your matter. Legal help subject to capacity and location.