Langdale Owners Corp. v. Lane

166 Misc. 2d 439, 636 N.Y.S.2d 577, 1995 N.Y. Misc. LEXIS 618
CourtAppellate Terms of the Supreme Court of New York
DecidedOctober 20, 1995
StatusPublished
Cited by2 cases

This text of 166 Misc. 2d 439 (Langdale Owners Corp. v. Lane) is published on Counsel Stack Legal Research, covering Appellate Terms of the Supreme Court of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Langdale Owners Corp. v. Lane, 166 Misc. 2d 439, 636 N.Y.S.2d 577, 1995 N.Y. Misc. LEXIS 618 (N.Y. Ct. App. 1995).

Opinion

OPINION OF THE COURT

Memorandum.

Final judgment unanimously reversed without costs and petition dismissed.

The issue on this appeal is whether a family member who moves in with a tenant of a rent-stabilized apartment after the building in which the apartment is located has been converted to cooperative ownership pursuant to a noneviction plan is entitled upon the tenant’s death to a lease renewal pursuant to section 2523.5 of the Rent Stabilization Code (9 NYCRR).

Occupant’s mother lived in the subject rent-stabilized apartment. The building in which the apartment is contained was converted to cooperative ownership in late 1987. Occupant claims that he moved in with his mother in June 1990 to care for her. His mother died on April 4, 1993 and her lease expired in October 1993. Occupant contends that he is entitled to a renewal lease pursuant to 9 NYCRR 2523.5 (b).

After trial, the court found that occupant had established his case by a preponderance of the evidence, a finding that is not challenged by landlord on appeal. The court went on to hold, however, that occupant was not entitled to a renewal lease because he was not a "nonpurchasing tenant” as that term is defined in section 352-eeee of the General Business Law and that only such "nonpurchasing tenants” are protected from eviction when the building in which they reside is converted to cooperative ownership pursuant to a noneviction plan. Accordingly, the court awarded final judgment of possession to landlord.

On this appeal, the Attorney-General, as amicus curiae, joins occupant in challenging the trial court’s ruling. The Attorney-[441]*441General notes that the statute provides that nonpurchasing tenants who reside in dwelling units subject to government regulation continue subject to such regulation (General Business Law § 352-eeee [2] [c] [iii]) and that it authorizes the agencies charged with administering the rent and eviction laws to prescribe "regulations with respect to continued occupancy by tenants of dwelling units which are subject to regulation” provided that the regulations are not inconsistent with the statute (General Business Law § 352-eeee [5]). The Attorney-General argues that the succession provision promulgated by Division of Housing and Community Renewal (DHCR) is not inconsistent with section 352-eeee but merely provides additional protections to the family members of nonpurchasing tenants.

Landlord argues that the statute protects only nonpurchasing tenants, and not their family members, and that the rights of the deceased nonpurchasing tenant are in no way reduced if her son, who was not in possession when the conversion plan was filed, is denied a renewal lease. Landlord urges that public policy should focus on protecting the shareholders against a decline in the value of their investments and against sponsor defaults.

We agree that by its terms section 352-eeee protects only nonpurchasing tenants and not their families (cf., Gordon v Mellinger, NYLJ, Mar. 18, 1994 [App Term, 1st Dept] [where conversion is pursuant to eviction plan, statute protects only eligible senior citizens against eviction and not their family members]). But this does not determine the issue. The question is whether the protection against eviction of surviving family members provided for in the rent and eviction regulations is inconsistent with the language and purpose of section 352-eeee. A review of the history and purpose of the subject statute, as well as of the history and purpose of the succession provisions, shows that the two sets of provisions are not inconsistent.

The first restrictions upon the right of sponsors of cooperative conversions to evict nonpurchasing tenants were found in the rent control regulations. These regulations provided that a tenant could not be evicted from a rent-controlled apartment in a structure owned by a cooperative corporation unless, inter alia, "within 6 months from the time the cooperative plan was presented * * * stock in the cooperative had been sold in good faith * * * to at least 35 percent of the tenants in occupancy of controlled housing accommodations” (New York City Rent and [442]*442Eviction Regulations former § 55 [c] [3] [a]; New York State Rent and Eviction Regulations former § 55 [3] [c] [i]).

When the Rent Stabilization Law went into effect on May 6, 1969, it too included a restriction upon the right of sponsors to evict nonpurchasing tenants. The Code provided that an owner could not refuse to renew a lease except when he had filed a conversion plan with the Attorney-General and at least 15% of the tenants in occupancy had agreed to purchase shares or title (Administrative Code of City of NY former § YY51-6.0 [c] [9]). This provision was later amended to require that 35% of the tenants in occupancy agree to purchase (Local Laws, 1969, No. 50 of City of New York; see, Matter of Kovarsky v Housing & Dev. Admin., 31 NY2d 184, 189).

In 1974, the Legislature enacted the so-called Goodman-Dearie Law, which provided the first State-wide controls upon conversions (L 1974, ch 1021, § 2). The law amended then General Business Law § 352-e to include, inter alia, a provision barring any conversions (by eviction or noneviction plan) unless the sponsor obtained the agreement of 35% of the tenants in occupancy to purchase (see, Note, Tenant Protection in Condominium Conversions: The New York Experience, 48 St John’s L Rev 978).

During the years that the Goodman-Dearie Law was in effect the number of conversions dropped dramatically. However, the law was not reenacted upon its expiration in 1977. Thereafter, the only controls upon sponsors were again those found in the rent and eviction laws (see generally, Tarman v Rowe, 112 Misc 2d 708, 711; Lehner & Sweet, Goodman-Dearie Expiration Leaves Coop Conversion Radically Altered, NYLJ, Nov. 16, 1977, at 25, col 1).

After the expiration of the Goodman-Dearie Law, the number of conversion plans again increased sharply. There was a loud outcry from tenants, particularly from those living in the suburbs of New York City who, unlike tenants in New York City, for the most part had no protection for continued occupancy upon conversion. As a result, the Legislature enacted a provision (General Business Law § 352-ee) which governed conversions in the Counties of Nassau, Westchester and Rockland (L 1978, ch 544). This law for the first time established a dual system of conversions, i.e., eviction and non-eviction plans, and required that a minimum percentage of tenants must agree to purchase before either type of plan became effective, 15% for noneviction plans and 35% for eviction plans. With respect to noneviction plans, the law gave [443]*443nonpurchasing tenants permanent protection against eviction and against unconscionable rent increases. With respect to eviction plans, the law gave eligible senior citizens permanent protection against eviction and unconscionable rent increases and gave other nonpurchasing tenants protection against eviction for two years after the plan became effective (see generally, Lehner and Sweet, Co-op Conversion Law; Impact in Suburbia, NYLJ, Sept. 20, 1978).

In 1979, General Business Law § 352-ee, the suburban law, was renumbered section 352-eee (L 1979, ch 135) and a new section 352-eeee was enacted governing conversions in New York City (L 1979, ch 432).

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Cite This Page — Counsel Stack

Bluebook (online)
166 Misc. 2d 439, 636 N.Y.S.2d 577, 1995 N.Y. Misc. LEXIS 618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/langdale-owners-corp-v-lane-nyappterm-1995.