LSNYC Forces NYCHA to Reform Entire Rent Adjustment System, Refund Overcharges 

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 400,000 NYCHA tenants.

LSNYC filed a federal lawsuit against NYCHA in 2019 for failing to adjust tenants’ monthly rents after they experienced a reduction in their household income. Federal law caps rents in public housing at 30% of households’ income and requires NYCHA to reexamine tenants’ rents annually and on an interim basis following a request by tenants who have experienced income drops or changes in their household composition. However, tenants found that NYCHA failed to accurately adjust tenants’ rents, raised rents for some due to miscalculations and errors, and wrongfully moved to evict tenants for nonpayment, putting tenants and their families at risk of homelessness.

As part of the settlement, NYCHA must now adjust tenants’ rent within 60 days of a request, provide written confirmation and receipts when resolving requests, refrain from starting eviction proceedings while requests are pending, inform tenants of the new rules, train staff, and report to LSNYC every six months for three years on their progress. “I hope that the new rules will lead to much needed change and that more people are kept in their homes, rather than being thrown out,” said plaintiff Thania Acosta.

• Read the press release
• Read the two page explainer

“NYCHA is finally being held accountable for their actions. For too long, NYCHA has improperly miscalculated my household income. I hope fewer tenants will have to succumb to the pain and suffering of being at risk of eviction for thousands of dollars due to rent overcharges. NYCHA has ignored my many pleas for them to correct their error. This agreement will provide justice for many NYC residents.”

Rose Middleton, a resident of Astoria Houses in Queens for 20 years

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