In W&L Associates LLC v. Gurevich, 16 Misc. 3d 129[A], 841 N.Y.S.2d 828, 2007 NY Slip Op 51289[U] (App. Term, 2nd Dept., 2007), the landlord attempted to opt out of the Section 8 program.

The landlord notified NYCHA that it would no longer accept Section 8 payments on behalf of the rent-stabilized tenant, after the expiration of her lease.

The landlord sent the tenant a renewal lease, that required the tenant to pay the full rent for the apartment.

The tenant refused to execute the renewal lease, and the landlord "deemed" the lease renewed and brought a non-payment proceeding for the portion of the rent previously paid by Section 8.

The Appellate Term affirmed the lower court's dismissal of the petition, holding that the Landlord's acceptance of Section 8 housing assistance payments was a term and condition of the expired lease (citing Rosario v. Diagonal Realty, LLC, 32 A.D.3d 739, 821 N.Y.S.2d 71 (2006) ), and that the landlord had no right to deem the lease renewed.

Since there was no default by the tenant, who had paid her portion of the rent, the Court found that there was no basis for the proceeding and that the petition had properly been dismissed.