Paul v. New York City Housing Authority
Petitioner, a Section 8 rent subsidy recipient, was found by NYCHA to have failed to report over $25,000 in income between 2001-2005, leading to a calculated overpayment of $6,412. She subsequently entered into a stipulation to repay this sum, but later fell behind on payments, exacerbated by personal circumstances including domestic violence and periods in shelters. NYCHA initiated termination of her Section 8 subsidy, a decision upheld after a hearing where her defense regarding the erroneous basis of the overpayment was limited. Petitioner commenced an article 78 proceeding, asserting she was a victim of identity theft which caused the incorrect income attribution. The court determined that the stipulation was based on a mutual mistake of fact regarding her true income, thus rendering it void. Consequently, the court annulled NYCHA's determination to terminate her subsidy, further noting the severe and disproportionate impact of such termination given her disability and the needs of her minor son.