2009-2011 Third Avenue Corp. v. Fifth Avenue Community Center of Harlem, Inc.

164 Misc. 2d 257, 623 N.Y.S.2d 1011, 1995 N.Y. Misc. LEXIS 67
CourtCivil Court of the City of New York
DecidedFebruary 3, 1995
StatusPublished
Cited by1 cases

This text of 164 Misc. 2d 257 (2009-2011 Third Avenue Corp. v. Fifth Avenue Community Center of Harlem, Inc.) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
2009-2011 Third Avenue Corp. v. Fifth Avenue Community Center of Harlem, Inc., 164 Misc. 2d 257, 623 N.Y.S.2d 1011, 1995 N.Y. Misc. LEXIS 67 (N.Y. Super. Ct. 1995).

Opinion

OPINION OF THE COURT

Saralee Evans, J.

This nonpayment proceeding was initiated against the Fifth Avenue Community Center of Harlem, Inc. (Community Center), and several residential tenants of the building located at 2009-2011 Third Avenue, New York, New York, in the Commercial Part of this court. The Community Center, a not-for-profit organization, entered into a net lease for the entire building with petitioner in 1991. From the commencement of the lease, respondent Community Center rented dwelling units located on the second and third floors of the building to formerly homeless individuals for monthly rentals in the amount of $215 per unit.

Although the commercial store lease provides that the entire building would be used as a group home for adolescents, it is undisputed that the building has never been used by the Community Center for that purpose. Moreover, the Community Center and the residential tenants state that the petitioner has been aware that the building has not been used in the manner agreed to in the lease from its inception in 1991.

For several months in 1993, the Community Center failed to pay rent to the petitioner. The instant proceeding was commenced, and the Community Center and the individual residential tenants appeared. The net lessee Community Center paid petitioner a portion of the arrears, and consented to the entry of a final judgment of possession only. A final judgment of possession was then entered against the net lessee only.1

Respondents residential tenants move to dismiss this proceeding on the grounds that the commercial nonpayment petition misstates the status of the building, and fails to allege compliance with multiple dwelling registration requirements.

Respondents residential tenants claim that the building is a multiple dwelling, the second and third floors of which are organized into 12 separate dwelling units. Respondents further allege that each of the units is occupied by an individual [259]*259or a family unit; that each of the individuals or families is a separate household which resides independently of the others in the building; and that each has exclusive control over its own dwelling unit. The residential tenants allege that they are protected by the Rent Stabilization Law and Code. As a consequence, respondents claim that this proceeding is defective as the petition: fails to state that the building is a multiple dwelling; fails to state that the premises have been registered as such; and improperly states that the premises are exempt from the Rent Stabilization Law (RSL).

In opposing the motion, petitioner alleges that there is no privity between it and the residential tenants, and that, consequently, the residential tenants’ claims to possession— which are subordinate to the claims of the net lessee — ended with the entry of the final judgment against the Community Center.

The court must decide what right, if any, the respondents residential tenants have in this proceeding to assert that the petition is fatally defective and that it therefore must be dismissed.

Respondents residential tenants argue that the building is a multiple dwelling which contains more than five class A units. A class A multiple dwelling is defined as a "multiple dwelling which is occupied * * * for permanent residence purposes.” (Multiple Dwelling Law, art 1, § 4 [8] [a].) Among the types of buildings that fall into this classification are tenements, apartment houses, apartment hotels, studio apartments, "and all other multiple dwellings except class B multiple dwellings.” (Multiple Dwelling Law, art 1, § 4 [8] [a].)

Initially, respondents’ allegation that the subject premises is a class A building that is subject to and protected by the RSL requires the court to examine the building’s certificate of occupancy to determine its classification under the Building Code.2

The certificate of occupancy, attached herein as exhibit B to petitioner’s affidavit dated June 29, 1994, indicates that the [260]*260subject premises is classified by the Buildings Department under category J-l. (Administrative Code of City of NY § 27-238.) Buildings in the J-l category are classified as class B buildings under the Code. Accordingly, the subject premises does not fall into the class A building type. However, that the building is categorized as class B does not mean that it is not subject to the RSL.3

A class B multiple dwelling is defined as a "multiple dwelling which is occupied, as a rule transiently, as the more or less temporary abode of individuals or families who are lodged with or without meals.” Among the types of buildings that fall into this category are hotels, lodging houses, rooming houses, boarding houses, and furnished rooming houses. (Multiple Dwelling Law, art 1, § 4 [9].)

In opposing the motion, the petitioner does not directly address the residential respondents’ specific allegations concerning the residential classification of the premises, except to say that according to the certificate of occupancy, the premises is not a multiple dwelling.

Petitioner argues that it is not required to allege facts in the petition pertaining to the regulatory status of the premises, as the proceeding was commenced in the Commercial Part of the court against a tenant with a commercial lease, and no special allegations are "necessary as with residential tenants.” Petitioner asserts that it entered into a commercial net lease for the building with the Community Center, that it has no lease with the respondents residential tenants and there is no privity between it and the residential tenants. Petitioner thus concludes that the tenants lack standing to assert the alleged deficiencies in the petition, as their rights (if any) derived from those of the net lessee — and ended with entry of the final judgment against the net lessee.

The court does not agree with petitioner that 170 W. 85th St. Tenants Assn. v Cruz (173 AD2d 338 [1st Dept 1991]) is controlling under the particular circumstances before the court. In the Cruz case, the Appellate Division ruled that a subtenant did not have the right to challenge the inadequacy of a predicate notice in a proceeding which was commenced [261]*261against a prime tenant. The court held that the undertenant had the right only to be named in the petition or to be added as a party during the course of the proceeding. (170 W. 85th St. Tenants Assn. v Cruz, supra, at 339.)

The issue before this court — whether the dwelling units in this building were subject to the RSL prior to the 1991 lease agreement, and, if so, whether the petition is defective because it erroneously claims exemption from the RSL — is distinguishable from the issue in Cruz (supra).

In the case at bar, the respondent residential tenants claim they are being deprived of rights accorded them by statute. If the dwelling units in the subject premises were subject to the RSL as respondents claim, petitioner would not be able to evade its protections by entering into a commercial net lease for the entire building with a not-for-profit group, and then claim the tenant occupants of the stabilized units are under-tenants who may not assert their rights under the RSL.

On the basis of the information before it, however, this court will not decide the rent stabilization claims asserted by the respondents.

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Related

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221 A.D.2d 237 (Appellate Division of the Supreme Court of New York, 1995)

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Bluebook (online)
164 Misc. 2d 257, 623 N.Y.S.2d 1011, 1995 N.Y. Misc. LEXIS 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/2009-2011-third-avenue-corp-v-fifth-avenue-community-center-of-harlem-nycivct-1995.