Central Park South Associates v. Haynes

171 Misc. 2d 463, 654 N.Y.S.2d 967, 1996 N.Y. Misc. LEXIS 544
CourtCivil Court of the City of New York
DecidedDecember 23, 1996
StatusPublished
Cited by1 cases

This text of 171 Misc. 2d 463 (Central Park South Associates v. Haynes) 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
Central Park South Associates v. Haynes, 171 Misc. 2d 463, 654 N.Y.S.2d 967, 1996 N.Y. Misc. LEXIS 544 (N.Y. Super. Ct. 1996).

Opinion

[464]*464OPINION OF THE COURT

Jay Stuart Dankberg, J.

Respondents’ motion to dismiss for lack of personal jurisdiction, for failure to state a cause of action (although otherwise denominated) and related relief and petitioner’s cross motion for summary judgment and related relief, motion numbers 13 and 14 on the Special Term Part 18 calendar of September 17, 1996, are consolidated for disposition.

FACTS

The controlling issue to be determined in this motion and cross motion is the manner in which the Emergency Tenant Protection Act of 1974 (L 1974, ch 576, § 4) applies to a rent-controlled apartment in New York City which becomes vacant and the initial legal regulated rent exceeds $2,000 per month.

In June 1995, respondents took possession of apartment 10-D pursuant to a one-year lease which expired on May 31, 1996 ánd which clearly stated that it was not subject to rent stabilization.

The prior tenant of apartment 10-D (Mrs. White) died in 1995 and had occupied the premises along with her husband, as rent-controlled tenants (pursuant to the New York City Rent and Rehabilitation Law [Administrative Code of City of NY, tit 26, ch 3] [City Rent Control Law — CRCL]) since approximately 1973. The apartment became decontrolled upon Mrs. White’s vacancy. Department of Housing and Community Renewal (DHCR) records show that the maximum base rent (MBR) for the apartment effective at her death was $1,588.83.

In 1995, the New York City Rent Guidelines Board authorized an increase of 35% above the maximum base rent as the permitted initial regulated rent. Applying such calculation to the 1995 MBR for apartment 10-D would yield an initial regulated rent of $2,144.92 per month.

OPINION

Petitioner argues that the apartment is deregulated because the initial regulated rent of $2,144.92 per month is exempt from regulation by Local Laws, 1994, No. 4 of the City of New York, an amendment to the Rent Stabilization Law of 1969 (Administrative Code, tit 26, ch 4). It provides that apartments becoming vacant after April 1,1994 which have regulated rents exceeding $2,000 per month are excluded from future regulation. (Administrative Code § 26-504.2 ["Exclusion of high rent accommodations”].)

[465]*465Respondents argue that their lease is subject to regulation, that they have been overcharged and that they are entitled to a renewal lease. Since the building was built in New York City before 1947, the first applicable rent regulation was the New York City Rent Control Law. They claim that upon vacancy, the apartment became decontrolled through the Emergency Tenant Protection Act of 1974 (ETPA), which continues rent regulations. They contend that unlike section 26-504.2 of the Rent Stabilization Law, ETPA § 5 (a) (13) excludes only those apartments becoming vacant between July 7, 1993 (the effective date) and October 1, 1993 and which have "a legal regulated rent of two thousand dollars or more per month” as of October 1, 1993. (McKinney’s Uncons Laws of NY § 8625 [a] [13].) Respondents argue that since the vacancy occurred after the window period and since the legal regulated rent was not $2,000 or more per month as of October 1, 1993, the ETPA high rent deregulation is inapplicable. They assert that respondents’ lease should be subject to rent stabilization through ETPA.

This court holds that the application of the ETPA to the apartment in this case resulted in the previously rent-controlled apartment becoming subject to the Rent Stabilization Law upon vacancy in 1995; however, upon the initial legal regulated rent exceeding $2,000, it became deregulated pursuant to the Rent Stabilization Law.

Since the court has found no cases on point, this is a case of first impression.

One of the main goals of the ETPA in New York City was "to place under the Rent Stabilization Law apartments which had been vacancy decontrolled or which were not previously controlled by reason of having been completed subsequent to March 10, 1969 * * * The ETPA merely adds classes of accommodations to the coverage of the Rent Stabilization Law.” (Matter of Cornerstone Baptist Church v Rent Stabilization Assn., 55 AD2d 952, 953 [2d Dept 1977] [citation omitted].)

This purpose is illustrated by the many interrelationships between the ETPA and the Rent Stabilization Law (RSL) which indicate that the Legislature intended that ETPA operate upon New York City apartments which had been or were going to be decontrolled by subjecting them to regulation pursuant to the Rent Stabilization Law.

ETPA actually amended the Rent Stabilization Law "by providing that [the Rent Stabilization Law] shall apply to other housing accommodations made subject to this law [RSL]” pur[466]*466suant to ETPA. (Perth Realty Co. v Dovoll, 79 Misc 2d 514, 518 [Civ Ct 1974] [emphasis added]; and see, Rent Stabilization Law [Administrative Code] § 26-504 [b].)

Numerous provisions within ETPA indicate that the Legislature intended that upon vacancy, previously rent-controlled apartments in New York City be regulated by the Rent Stabilization Law. ETPA provides that the Rent Guidelines Board shall administer the act and shall have the powers granted by the RSL (McKinney’s Uncons Laws of NY § 8624 [c] [ETPA § 4 (c)]), the initial legal regulated rent shall be pursuant to the RSL (McKinney’s Uncons Laws of NY § 8626 [c] [ETPA § 6 (c)]), the initial regulated rent shall be subject to adjustment pursuant to the RSL (McKinney’s Uncons Laws of NY § 8629 [e] [ETPA § 9 (e)]), and the act may be implemented by regulations adopted pursuant to the RSL (McKinney’s Uncons Laws of NY § 8630 [b] [ETPA § 10 (b)]).

Such an interpretation is consistent with the interpretation of the DHCR. In Operational Bulletin No. 95-3, DHCR specifies the effects of the Rent Regulation Reform Act of 1993 (L 1993, ch 253) and Local Law No. 4 upon housing within New York City or outside New York City. The DHCR states that "housing accomodations regulated pursuant to RSL or CRCL will be referred to as New York City (NYC) housing accomodations.” (DHCR Operational Bulletin No. 95-3, at 2 [Dec. 18, 1995] [emphasis added].) Other housing accommodations in New York State are referred to as "outside New York City”.

In 1994, New York City enacted Local Law No. 4 which amended the New York City rent regulation statutes (both the CRCL and the RSL) to exclude any housing accommodation with a legal regulated rent of $2,000 or more per month which is or becomes vacant on or after April 1, 1994. (Administrative Code § 26-403 [e] [2] [k]; § 26-504.2 ["Exclusion of high rent accommodations”].)

Respondents argue that despite the factual circumstances of this case meeting the statutory criteria — that the vacancy occurred in 1995 (after the Apr. 1, 1994 requisite) and that the legal regulated rent jumped to $2,144.92 (over the $2,000 requisite) because the apartment changed classification from a rent-controlled apartment to a rent-stabilized apartment (pursuant to ETPA), the exclusion does not apply. They argue that the exclusion would never apply to the first stabilized tenant but would only apply to a subsequent stabilized tenancy.

Respondents’ argument misinterprets the intent and effect of housing regulation in New York City. It is clear that ETPA operated upon New York City rent-controlled apartments by [467]*467subjecting them to governance by the Rent Stabilization Law upon their vacancy.

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171 Misc. 2d 463, 654 N.Y.S.2d 967, 1996 N.Y. Misc. LEXIS 544, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-park-south-associates-v-haynes-nycivct-1996.