24 C.F.R. § 246.21

Rental charges

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The Department finds that it is necessary and desirable to minimize defaults by the mortgagor in its financial obligations with regard to projects covered by this subpart, and to assist mortgagors to preserve the continued viability of those projects as a housing resource for low-income families. The Department also finds that it is necessary and desirable to protect the substantial economic interest of the Federal Government in those projects. Therefore, the Department concludes that it is in the national interest to preempt, and it does hereby preempt, the entire field of rent regulation by local rent control boards, (hereinafter referred to as board), or other authority, acting pursuant to state or local law as it affects projects covered by this subpart.

[40 FR 49318, Oct. 22, 1975. Redesignated at 44 FR 58506, Oct. 10, 1979, and at 49 FR 6713, Feb. 23, 1984]

Notes of Decisions

Cited in 5 cases, 1995–2020 · leading case: Mott v. New York State Div. of Hous. & Cmty. Renewal, 211 A.D.2d 147 (N.Y. App. Div. 1995).

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Mott v. New York State Div. of Hous. & Cmty. Renewal, 211 A.D.2d 147 (N.Y. App. Div. 1995). “Pursuant to 24 CFR part 246 (subpart C), if the property is subject to a mortgage insured or held by HUD and the landlord receives section 8 housing assistance for the apartment, the regulations provide that HUD has preempted "the entire field of rent regulation by local rent…”

435 Cent. Park West Tenant Ass'n v. Park Front Apts., LLC, 56 Misc. 3d 772 (N.Y. Sup. Ct. 2017). “Instead, preemption derives from 24 CFR 246.21, which reads: “The Department finds that it is necessary and desirable to minimize defaults by the mortgagor in its financial obligations with regard to projects covered by this subpart, and to assist mortgagors to preserve *785 the…”

5th & 106th St. Assoc., L.P. v. Hunt, 69 Misc. 3d 19 (N.Y. App. Term. 2020). · cites it 2× “Where, as here, the property is subject to a mortgage insured or held by HUD and the landlord receives Section 8 housing assistance for the apartment, the regulations provide that HUD has preempted "the entire field of rent regulation by local rent control boards" in order to…”

Summit Plaza Assocs. Vs. Ragee Kolta (lt-007691-18, Hudson Cnty. & Statewide) (N.J. Super. Ct. App. Div. 2020). “1) and 24 C.F.R. § 246.21 (Section 246.21) (collectively, HUD regulations).”

435 Cent. Park W. Tenant Assn. v. Park Front Apts., LLC, 2018 NY Slip Op 5625 (N.Y. App. Div. 2018). “) was expressly preempted, pursuant to HUD regulations ( see 24 CFR 246.21). In 1980, owner obtained a Flexible Subsidy Grant from HUD and entered into a related Financial Assistance Contract.”

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