Matter of Coyle v. Rhea
NEW YORK COUNTY
Justice Alice Schlesinger
Coyle sought to recover more than $244,000 in unpaid rent subsidies for 30 apartments from the New York City Housing Authority. She claimed the city wrongfully suspended payments for months without sending her notice despite being informed of Coyle's status as the court-appointed receiver for the properties. The city argued Coyle was not entitled to recover the remaining $41,144 due to an alleged failure to timely repair Housing Quality Standard violations. Yet, the court noted, and the city did not dispute that all notices of the violations were sent to the building owner, not Coyle, despite the city having notice a receiver was appointed. It stated Coyle could not be penalized for failing to timely complete the necessary repairs when she was not directly notified of the violations. The court stated adequate notice was a prerequisite to the suspension of the Section 8 payments, and the city did not, and could not, dispute that it repeatedly failed to give Coyle notice, despite knowing it was obligated to do so. Thus, the Article 78 petition was granted, and the city was directed to pay directly to Coyle at the proper address the remaining amounts due in improperly withheld Section 8 payments.
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