The Superior Court of New Jersey has ruled that owners/agents of HUD assisted housing must adhere to the requirements of HUD Handbook 4350.3 when moving to evict a resident for non-compliance with recertification requirements.
The case was heard by the New Jersey Court’s Appellate division and decided in June of this year. In its decision, the Court reversed the eviction by a lower court.
At issue was the defendant’s failure as a resident to recertify on time, at which point HUD subsidy was terminated and the resident’s rent was increased to market. The market rent was not paid, and so the plaintiff owner/agent moved for the eviction. The Superior Court noted that the defendant had raised a number of issues that fell under what HUD calls “extenuating circumstances,” and which it found the owner/agent did not take into consideration. The resident had lived at the property for several years and had never been in non-compliance with recertification requirements.
Moreover, and perhaps of equal or greater importance, the Court found the owner/agent failed to document the notices HUD requires be provided to the resident, and which it found the lower court overlooked in ordering the eviction.
In rendering its decision, the Court looked to the notification requirements found in HUD Handbook 4350.3, finding for the defendant. The decision also stipulates that the defendant/resident comply by being properly recertified.
I’ll be hosting a webinar on July 29th from 2:00 p.m. to 3:30 p.m. Eastern time with more information about this case, and the importance of proper recertification processes, including the consideration of extenuating circumstances. I hope you’ll join me for the training.