Nelson v. Yates

127 Misc. 2d 234, 485 N.Y.S.2d 412, 1984 N.Y. Misc. LEXIS 3752
CourtCivil Court of the City of New York
DecidedOctober 10, 1984
StatusPublished
Cited by8 cases

This text of 127 Misc. 2d 234 (Nelson v. Yates) 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
Nelson v. Yates, 127 Misc. 2d 234, 485 N.Y.S.2d 412, 1984 N.Y. Misc. LEXIS 3752 (N.Y. Super. Ct. 1984).

Opinion

OPINION OF THE COURT

Charles E. Ramos, J.

In this nonpayment proceeding, the respondent tenant moves after trial to dismiss the petition on the ground that it fails to allege that the petitioners landlords are members of the Rent Stabilization Association. The petitioners assert that an allegation of membership in the Rent Stabilization Association is not required because the respondent’s apartment is not subject to rent stabilization by reason of (a) the substantial rehabilitation exemption provided by Emergency Tenant Protection Act § 5 (a) (5) (ETPA; L 1974, ch 576, § 4) and (b) by reason of the fact that the premises contain fewer than six dwelling units.

THE FACTUAL BACKGROUND

The petitioners purchased the premises in 1979 and converted it from its former status as a rooming house to its present status as a class A apartment house renovating and rehabilitating all floors. At the conclusion of this rehabilitation the premises were [235]*235altered from a 17-unit class B rooming house to a 5-unit class A apartment house, occupied by the petitioners and their tenants.

The petitioners invested $110,000 to purchase the premises and expended $150,000 in the rehabilitation. The rehabilitation not only resulted in the conversion of the original 13 class B rooms and 4 class A apartments into 5 rehabilitated class A apartments (as revealed by a comparison of the original and current certificates of occupancy) but also in the repair and/or replacement of many of the building’s major systems and components.

Included in the work was repair or replacement of floors, walls, windows, plumbing, roofs, electrical wiring, intercom, fixtures, doors and appliances. New rooms were created, existing rooms destroyed, layouts were changed and classification of units upgraded from B to A as aforesaid.

Each floor of the building received a share of the rehabilitation, and all floors enjoyed the bénefits of the improvements to the common areas.

APPLICABLE LAW & REGULATION

ETPA provides that a class A multiple dwelling containing six or more class A units is subject to rent stabilization. ETPA § 5 (a) (5) also provides for an exemption for “housing accommodations in buildings *** substantially rehabilitated as family units on or after January [1, 1974]”.

The term “substantial rehabilitation” is not defined in the ETPA.

The term has been the subject of some case law, notably Goodman v Ramirez (100 Misc 2d 881); Hickey v Bomark Fabrics (111 Misc 2d 812, affd 120 Misc 2d 597) and Matter of Romanow v Heller (121 Misc 2d 886).

In Goodman (supra), a case with a virtually identical factual situation to the matter on trial, the landlord rehabilitated a 17-unit rooming house, converting it from a class B to a class A multiple dwelling. The owner’s contention that the subject apartment was exempt from rent stabilization was sustained, even though it received no rehabilitation at all. The building-wide rehabilitation was sufficient to remove all apartments from stabilization.

In Hickey (supra), a very different standard was applied to somewhat similar facts. The owner “remodeled” 7 of the building’s 11 units into 3 class A units. The Appellate Term in affirming the trial court stated that the remodeling of the seven units was merely a consolidation of some B units into A units [236]*236which did not constitute a substantial rehabilitation. (See, Hickey v Bomark Fabrics, 120 Misc 2d 597, 599 [App Term], supra.)

Not considered by the Appellate Term, but relied upon by the respondent here was the interpretation of ETPA § 5 (a) (5) by the trial court in Hickey (111 Misc 2d 812, 815, supra), which stated that the “rehabilitation [must] result in the creation of new family units * * * an increase in the number of residential [family] units.” The trial court in Hickey (111 Misc 2d 812, 816-817, supra) had further held that' “[a]bsent unusual circumstances * * * a rehabilitation which does not at least double the number of family units in the building cannot be deemed a substantial rehabilitation of the building within the meaning of section 5 (subd a, par [5]) of the ETPA.”

In Romanow (supra), the basis for the alleged exemption from rent stabilization was a rehabilitation that occurred some 10 years prior to the attempt by the landlord to invoke the substantial rehabilitation exemption.

The court in Romanow (supra) undertook an attempt to define substantial rehabilitation, citing as authority both Goodman v Ramirez (supra) and Hickey v Bomark Fabrics (supra), but without reconciling the contradictory holdings in those cases. Contrary to Goodman and leaning toward Hickey, Romanow held that some new family units should be added to the housing stock, and ruled that there was no substantial rehabilitation, but it is evident that there was retreat from the standard of Hickey that the rehabilitation must double the number of units.

ANALYSIS

It is apparent from a reading of the applicable statutes and the cases discussed above that there is a trend in the most recent cases to amend the ETPA by judicial fiat. In Hickey (supra), the court required that a substantial rehabilitation must double the number of housing units. In Romanow (supra), the court sought to justify its holding that some additions be made to the housing stock by construing the exemption “in light of the remedial purposes of the ETPA and the statutory scheme of the Rent Stabilization Law”. (Matter of Romanow v Heller, 121 Misc 2d 886, 889, supra.)

This court will not apply the standards of Hickey and Romanow (supra) for two reasons. The first is that such statutory interpretation is unnecessary when the statute is clear and unambiguous. In this case the statute is clear and unambiguous. (See, Goodman v Ramirez, supra, p 884.) The second reason is [237]*237that if statutory interpretation is necessary, then it should be done in the light of the intent of the specific statute itself, and not of the intent of other laws dealing with a similar subject matter.

The term “substantial rehabilitation”, although not defined in the statute, is not a term which may be defined without regard to the customary and accepted meaning of the words themselves.

“Rehabilitation” is defined in Webster’s Third New International Dictionary Unabridged as “to put into a previous good state again: to restore”.

“Substantial” is therein defined as “not seeming or imaginary: not illusive: real: true * * * having good substance * * * strong: stout: solid”.

Neither term alone or in combination remotely suggests any increase in quantity or capacity, as both Hickey and Romanow (supra) hold. Rather, the terms suggest quality, a true or significant restoration of a former good quality.

Within the context of poor or substandard housing, such as the premises here prior to the rehabilitation, substantial rehabilitation refers to improving the quality of the housing stock, not increasing the quantity.

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Bluebook (online)
127 Misc. 2d 234, 485 N.Y.S.2d 412, 1984 N.Y. Misc. LEXIS 3752, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-yates-nycivct-1984.