Parkchester Preservation Co. v. Hanks

185 Misc. 2d 786, 714 N.Y.S.2d 399, 2000 N.Y. Misc. LEXIS 391
CourtCivil Court of the City of New York
DecidedJuly 13, 2000
StatusPublished

This text of 185 Misc. 2d 786 (Parkchester Preservation Co. v. Hanks) 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
Parkchester Preservation Co. v. Hanks, 185 Misc. 2d 786, 714 N.Y.S.2d 399, 2000 N.Y. Misc. LEXIS 391 (N.Y. Super. Ct. 2000).

Opinion

OPINION OF THE COURT

Anthony J. Fiorella, Jr., J.

Respondents move for an order dismissing the six instant holdover proceedings upon the ground that these proceedings cannot be maintained pursuant to section 352-eeee of the General Business Law (Martin Act). Petitioner cross-moves for an order of summary judgment in its favor and a finding that the condominium leases between the parties have expired and their tenancies have terminated; further, issuing judgments of possession and warrants of eviction; striking respondents’ first defense relying on General Business Law § 352-eeee and striking respondents’ second defense; striking the first affirmative defense that this action was brought in retaliation for the tenants placing violations against the premises; striking the second affirmative defense alleging that petitioner agreed to offer a one-year lease to respondents; and striking the first counterclaim alleging defects in the premises.

Factual Background

Petitioner affirmatively states it is not the condominium sponsor. Petitioner purchased certain vacant and other occupied condominium units from the condominium sponsor, Parkchester Apts. Co. Petitioner contends that there is no common ownership between the two entities nor do they share any common shareholders, partners or members. Petitioner states that the purchase and sale of the units was in fact a good-faith, arm’s length purchase for value.

Parkchester Apts. Co. purchased the complex known as Parkchester in 1968. In or about 1972, Parkchester Apts. Co. converted a portion of the complex into a condominium known as Parkchester North Condominium. The conversion took place pursuant to a noneviction plan. Sometime in 1985 Parkchester converted an additional portion of the complex into a condominium known as the Parkchester South Condominium. Said conversion was also pursuant to a noneviction plan.

Subsequent to the adoption of each plan, Parkchester Apts. Co. continued to own the condominium units which were not sold to purchasers. Some of the unsold units were occupied by [788]*788rent-stabilized or rent-controlled tenants. Other units were vacant at the time of adoption of the plans or became vacant thereafter and from time to time were rented pursuant to fair market leases.

On July 1, 1998, Parkchester Apts. Co. sold all of its right, title and interest in and to the balance of the unsold condominium units it owned in the Parkchester North Condominium and the Parkchester South Condominium to Parkchester Preservation Co. L.P. Said sale was to a bona fide purchaser for value. The purchase price for this transaction was in the millions of dollars. Parkchester Preservation Co. L.P. purchased the condominium units, both occupied and vacant, owned by Parkchester Apts. Co. Petitioner also contends that there is no relationship between Parkchester Preservation Co. L.P. and Parkchester Apts. Co.

The sponsor of the condominium conversion completed the north condominium in the 1970’s and the south condominium in the 1980’s and has sold 100% of its equity or other ownership interest in the individual unsold condominium units to Parkchester Preservation Co. L.P., pursuant to the deed dated July 1, 1998. None of the fair market condominium leases herein have been renewed. They have not been renewed for a number of years. However, at the settlement of prior nonpayment proceedings the fair market condominium leases were extended from year to year in writing when the nonpayment cases were settled. None of the tenants in this litigation were in physical occupancy when either the north or south condominiums were created in the 1970’s and 1980’s, respectively.

Petitioner has not commenced these proceedings because the tenants have complained of violations in their apartments. Petitioner currently owns approximately 6,000 condominium units, and has demonstrated that when violations are placed or tenants request repairs, the repairs are made as soon as possible. Allegedly the tenants have complained for the last five years that they wanted common element capital improvements to be made to the premises for violations which on repeated inspections have not been found to exist. Moreover, a decision rendered February 25, 2000 by the Honorable Marion C. Doherty concluded that there were no common systemic violations in the development.

Respondents, on the other hand, contend that in each instance they are considered “nonpurchasing tenants” as defined in General Business Law § 352-eeee and are thus protected from eviction. Further, if these respondents are not [789]*789so protected, they contend that they have several defenses which might entitle them to judgment, i.e., retaliatory eviction and lack of repairs. Respondents also contend that if the premises were considered a cooperative, petitioners would be purchasers of “unsold shares” to which the statute protecting tenants is clearly applicable.

Discussion

In this proceeding the paramount issue for determination is whether the respondents fall within the purview of General Business Law § 352-eeee so as to confer upon them the status of “nonpurchasing tenants.” Under the statute, the definition of a nonpurchasing tenant is as follows: “ ‘Non-purchasing tenant’. A person who has not purchased under the plan and who is a tenant entitled to possession at the time the plan is declared effective or a person to whom a dwelling unit is rented subsequent to the effective date” (General Business Law § 352-eeee [1] [e]). The statute further provides: “No eviction proceedings will be commenced at any time against non-purchasing tenants for failure to purchase or any other reason applicable to expiration of tenancy” (General Business Law § 352-eeee [2] [c] [ii]).

Contrary to respondents’ argument, this court concludes that the aforestated section of the Martin Act has no application to the instant matters. None of the respondents have clearly indicated that they were residents of Parkchester Apts. Co. when the plan was ultimately declared effective by the Attorney General’s Office. These apartments are condominium units which petitioner has leased to individuals for a limited period of time. Since none of these units are governmentally regulated, they are clearly free market apartments which permits the petitioner to lease them on an individual basis and for the time period agreed to by the parties.

Whether petitioner is a corporation or individual, petitioner alone has the right to govern the use, occupancy, and the individual lessee who resides in the unit for a specified, but limited, period of time.

In each of the condominium leases before the court there appears a paragraph 57 which clearly advises the lessee of what his or her status will be at the conclusion of the lease term:

“57. Tenant is Not Rent Stabilized or Rent Controlled.
“Tenant acknowledges and agrees that:
“(A) Tenant’s use and occupancy of the Unit is not governed by the Rent Stabilization Law of 1969, the Rent Stabilization [790]*790Code for Rent Stabilized Apartments in New York City adopted by the New York State Division of Housing and Community Renewal, the Rent and Rehabilitation Law and the Rent and Eviction Regulations promulgated thereunder; and

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Bluebook (online)
185 Misc. 2d 786, 714 N.Y.S.2d 399, 2000 N.Y. Misc. LEXIS 391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parkchester-preservation-co-v-hanks-nycivct-2000.