The Legal Aid Society filed this class action lawsuit to challenge the New York City Housing Authority’s (NYCHA) miscalculation of tenants’ Section 8 rent shares in projects that are covered by the recently enacted Section 610 of the New York Private Housing Finance Law, such as the Diego Beekman Mutual Housing Association HDFC. Section 610 allows landlords to collect the maximum subsidy available to a tenant, even if the amount exceeds the Rent Stabilized rent, as long as the tenant’s own rent share is not increased. However, NYCHA and Diego Beekman have misapplied the statute, and have charged tenants as much as 90% of their income in rent, putting those tenants in danger of eviction.

On April 7, 2025, Legal Aid moved for a preliminary injunction to stay pending eviction proceedings against tenants facing illegal rents. The lawsuit is ongoing.