In Richardson v. Rhea, (2010 NY Slip Op 32193[U] [Sup Ct, New York County 2010]), the petitioner submitted a rental application on October 9, 2009, and the apartment passed inspection on November 13, 2009. NYCHA incorrectly determined that the pertinent deed had not been recorded, even though proof of its recording was "readily available," As a result, NYCHA canceled the voucher, deeming it expired.
In response to the petition, NYCHA raised its lack of funding and decision to deny new vouchers that had not been approved by December 31, 2009.
The court held that NYCHA had acted arbitrarily and capriciously to the extent that of its decision that the petitioner's rental application was incomplete, thereby leading to "a string of decisions" resulting in the voucher's cancellation.
Although the court acknowledged NYCHA's authority not to process applications that were complete by December 2009, it nonetheless remanded the matter because its decision was based on false information.