815 Park Owners, Inc. v. West LB AdminisTration, Inc.

119 Misc. 2d 671, 463 N.Y.S.2d 1015, 1983 N.Y. Misc. LEXIS 3575
CourtCivil Court of the City of New York
DecidedJune 15, 1983
StatusPublished
Cited by8 cases

This text of 119 Misc. 2d 671 (815 Park Owners, Inc. v. West LB AdminisTration, 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
815 Park Owners, Inc. v. West LB AdminisTration, Inc., 119 Misc. 2d 671, 463 N.Y.S.2d 1015, 1983 N.Y. Misc. LEXIS 3575 (N.Y. Super. Ct. 1983).

Opinion

OPINION OF THE COURT

Diane A. Lebedeff, J.

The court is presented with a holdover proceeding brought upon the claim that the tenant is violating a substantial obligation of the lease for a rent-stabilized apartment by leaving the apartment vacant and unoccupied. The apartment is located at 815 Park Avenue in [672]*672Manhattan, in a building which is undergoing a co-operative conversion. The tenant of record, a corporation, is subject to a lease providing that a named individual, or a person succeeding to his position, shall be the only approved occupant.

Among the issues presented are whether: (1) the current owner, a co-operative corporation, may bring this proceeding based upon notices issued by the former owner; (2) actual occupancy is a substantial obligation of a tenancy; and (3) proper service upon the corporate tenant was accomplished.

BACKGROUND

Because a motion to dismiss is before the court, not all of the facts are before the court and the sequence of events is only generally revealed by the papers. The corporate tenant rented this rent-stabilized apartment in 1978, signing a two-year lease. There was no renewal and the tenancy continued under the terms of the 1978 lease.

A co-operative conversion plan was presented to the tenants. In or about September of 1982, the residential corporate tenant, as is permitted under section 61 (subd 4, par [a], cl [v]) of the amended Code of the Rent Stabilization Association of New York City, Inc. (hereinafter RSA Code),.duly designated the approved occupant as the person entitled to exercise purchase rights in relation to the shares allocated to the apartment.

In December of 1982, the grantor of the petitioner was the owner. The then owner issued a notice to cure upon the basis that the apartment was vacant and unoccupied and shortly thereafter issued a notice of termination. No claim is present here that the notices were improper and there is no allegation that the apartment has been reoccupied.

Title was taken by the co-operative corporation after the issuance of the notice of termination and fcrior to the commencement of this proceeding. It should be noted that both the right to possession and to purchase the shares are involved with this proceeding. The plan itself provides that the tenant may purchase the shares only if it prevails in this proceeding.

[673]*673RELIANCE UPON NOTICES ISSUED BY A PRIOR OWNER BY A CO-OPERATIVE CORPORATION

The tenant has questioned whether a co-operative corporation may commence a holdover proceeding against a rent-stabilized tenant. There is no denial that the petitioner is the fee owner of the building. It is apparent that there is no relationship other than a lessor and lessee for there is no proprietary lease and no shares have been issued for the building. Based upon such facts, the court can find no reason why this owner should be barred from commencing this holdover proceeding.

The tenant also takes issue with the fact that the new owner has relied upon a notice to cure and a notice of termination issued by the former owner. It is a well-established principle that an owner’s rights and remedies run with the land and may be assumed by a new owner. (See Real Property Law, § 223; Matter of 507 Madison Ave. Realty Co. v Martin, 200 App Div 146, 150-151.) Thus, it has been held that a new owner upon taking title may succeed to rights under a notice of termination which has not expired, under a notice of termination which has become effective, and even under a warrant of eviction if the warrant were amended to award possession to the new owner. (See, respectively, Maidman Props. v Rebuilt Mach., 54 NYS2d 263; Corning Chamber of Commerce v Bohoy, 207 Misc 789; Home Owners’ Loan Corp. v McShane, 184 Misc 579.)

Nor are there present here other defects in the notices as might occur when there is a transfer of ownership. A person with authority issued the notices. (Cf. Reeder v Sayre, 70 NY 180; Levine v Potter, 220 App Div 242; 185 East 85th St. Co. v Gravanis, NYLJ, Jan. 21,1981, p 6, col 2.) There was no defect as to the timeliness of the notices. (Cf. Brullo v Suen, 76 Misc 2d 896; Rosen v Wade, 99 Misc 2d 1114.) There was no delay in the commencement of the proceeding such that the tenant might believe the tenancy was revived. (Cf. Seegers v 302 East 45th St. Co., NYLJ, Oct. 1, 1980, p 6, col 1.)

Present here is only a simple change of title. No other defects having been urged, it is concluded that the com[674]*674mencement of this proceeding based upon the notices to cure and of termination issued by the prior owner is proper.

VACANCY OF APARTMENT AS GROUND FOR HOLDOVER PROCEEDING

The claim for eviction is based upon an allegation that the apartment is vacant and unoccupied. The tenant claims that such a basis cannot support this holdover proceeding.

At the outset, the language of the lease itself should be noted. It provides as follows: “The apartment will be occupied by [a named individual and his wife] only. If [the individual] is transferred the apartment will be occupied by his successor only.” The court finds that the lease restricts occupancy but does not require occupancy.

Restrictions on occupancy have been upheld when they require occupancy by an approved individual, as in Penthouse Props. v 1158 Fifth Ave. (256 App Div 685). Frequently, in publicly funded or subsidized housing, a named qualified tenant may be required to actually occupy an apartment, as in the Mitchell-Lama program. (See, specifically, RNA House v Zlatchin, NYU, Jan. 30,1975, p 2, col 1; and generally Forman v Community Servs., 500 F2d 1246, 1249.) However, the clause present here does not set forth an actual obligation to continuously occupy the apartment.

It is nonetheless urged that a vacant apartment is a breach of a substantial obligation of the tenancy in that it poses a danger to the building. Whatever may be the merits of this argument in other circumstances, the court finds this claim unpersuasive when, a building is in a cooperative conversion process. Several factors support this conclusion.

First, it appears that a tenant of record of a rent-stabilized vacant apartment has a recognized and protected status during the co-operative conversion process. Under subdivision 5 of section 61 of the RSA Code, the right to purchase shares is granted to “lessees of record of vacant or subleased apartments at the time of the offering” (emphasis added). If a tenant under the circumstances present here were to suffer the loss of the right to purchase shares [675]*675because of the vacancy of the apartment, the tenant would be deprived of an explicit right granted by the RSA Code. That conclusion is inescapable in this case, for the offering plan provides the tenant shall not have a right to purchase if it does not prevail in this holdover proceeding.

Second, it is common experience that apartments are often vacant during a conversion process. Landlords often withhold apartments from the rental market, leaving them empty. That practice, known as “warehousing,” was so pervasive that the Legislature by chapter 544 of the Laws of 1978 added a restriction to permit the Attorney-General to refuse approval of a conversion plan if there were an excessive number of long-term vacancies.

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Bluebook (online)
119 Misc. 2d 671, 463 N.Y.S.2d 1015, 1983 N.Y. Misc. LEXIS 3575, Counsel Stack Legal Research, https://law.counselstack.com/opinion/815-park-owners-inc-v-west-lb-administration-inc-nycivct-1983.