Spaeda v. Bakirtjy

186 Misc. 2d 557, 720 N.Y.S.2d 292, 2000 N.Y. Misc. LEXIS 544
Civil Court of the City of New York·Decided January 14, 2000·Published

Opinion

[558] OPINION OF THE COURT

Lucy Billings, J.

I. Background

Petitioner landlord commenced this holdover proceeding to recover possession of 211 Front Street, New York County, on the ground that respondent tenant’s lease has expired. Respondent moves to dismiss the petition, claiming his tenancy is rent stabilized, and therefore expiration of his lease is not a permissible ground on which to terminate his tenancy. He bases his claim to rent stabilization on petitioner’s failure to include a necessary clause in each renewal lease entered during the period tax exemption or abatement benefits were granted under Administrative Code of the City of New York §§ 11-243 and 11-244. As discussed below, the court grants the motion to dismiss the petition, based on petitioner’s failure to include a necessary clause in respondent’s renewal leases.

In assessing respondent’s motion to dismiss the petition on the ground that the facts alleged establish his rent-stabilized status as a matter of law, the court must determine whether, accepting the petition’s factual allegations as true, petitioner can succeed upon any reasonable view of the alleged facts. (Campaign for Fiscal Equity v State of New York, 86 NY2d 307, 318 [1995].) It is undisputed that respondent took possession of the premises when it was not subject to rent stabilization. During the period the premises received tax benefits pursuant to Administrative Code §§ 11-243 and 11-244, his tenancy was covered by rent stabilization. (Rent Stabilization Law of 1969 [Administrative Code] § 26-504 [c]; 28 RCNY 5-03 [fl [1], [3]; Green Props. v Warr, NYLJ, Apr. 22, 1998, at 26, col 3 [Civ Ct, NY County], affd, NYLJ, Apr. 22, 1999, at 28, col 2 [App Term, 1st Dept].) Upon expiration of the tax benefits, petitioner maintains the tenancy reverted to the unregulated status in effect before the tax benefit period.

II. Renewal Leases

Administrative Code § 26-504 (c) provides that the Rent Stabilization Law applies to:

“Dwelling units in a building or structure receiving the benefits of section 11-243 or section 11-244 of the code * * * Upon the expiration or termination for any reason of the benefits of section 11-243 or section 11-244 of the code * * * any such dwelling unit shall be subject to this chapter until the occurrence of the first vacancy of such unit after such [559] benefits are no longer being received or if each lease and renewal thereof for such unit for the tenant in residence at the time of the expiration of the tax benefit period has included a notice in at least twelve point type informing such tenant that the unit shall become subject to deregulation upon the expiration of such tax benefit period and states the approximate date on which such tax benefit is scheduled to expire.” (Emphasis supplied; see also, Rent Stabilization Code [9 NYCRR] § 2520.11 [o] [2]; 28 RCNY 5-03 [f] [3] [i].)

Thus, upon expiration of tax exemption or abatement benefits to respondent’s premises, they remain rent stabilized throughout his tenancy unless each renewal lease he entered during the tax benefit period included a notice explaining the premises’ rent-stabilization status and giving an approximate date when the benefits were scheduled to expire. (Avon Bard Co. v Levine, NYLJ, Apr. 19, 1999, at 28, col 5 [App Term, 1st Dept]; 1438 Third Ave. Assoc. v Billan, NYLJ, June 11, 1999, at 31, col 5 [Civ Ct, NY County]; Giannattasio v Cialini, 165 Misc 2d 249, 253 [Civ Ct, Kings County 1995].)

When respondent took possession of the premises, it was not subject to rent stabilization, and petitioner had not yet applied for the tax benefits. Therefore the original lease could not and was not required to give notice that the unit would become destabilized upon expiration of the benefits or give the approximate date they would expire. (1438 Third Ave. Assoc. v Billan, NYLJ, June 11, 1999, at 31, col 5, supra.)

It is undisputed, however, that petitioner also did not give the specified notice in each of respondent’s renewal leases during the tax benefit period. Petitioner argues that none of the renewal leases could include this notice either, because a landlord cannot vary the terms of a renewal lease from the expiring lease, citing 9 NYCRR 2522.5. (See, Matter of Century Operating Corp. v Popolizio, 60 NY2d 483, 487 [1983]; Matter of David v New York City Conciliation & Appeals Bd., 59 NY2d 714, 715-716 [1983]; East Eleventh St. Assocs. v Breslow, 256 AD2d 110 [1st Dept 1998].)

9 NYCRR 2522.5 (g), however, qualifies that prohibition. Subdivision (g) provides that a renewal lease for a rent-stabilized tenancy must be on the same terms as the expiring lease, except where a change is necessary:

“to comply with a specific requirement of law or regulation applicable to the building or to leases [560] for housing accommodations subject to the RSL * * * Nothing herein may limit the inclusion of authorized clauses otherwise permitted by this Code * * * not contained in the expiring lease.”

Thus, inclusion of the notice in respondent’s renewal leases was permitted on several grounds. First, if upon the tax benefits’ expiration petitioner sought to free respondent’s premises from rent stabilization, she needed to comply with the specific requirements of the statute (Administrative Code § 26-504 [c]), and the regulations (9 NYCRR 2520.11 [o] [2]; 28 RCNY 5-03 [f] [3] [i]), regarding the notice in renewal leases explaining the premises’ rent-stabilization status and its expiration. These requirements were applicable both to the building, based on its receipt of the tax benefits, and to the renewal leases for respondent’s housing accommodations, which were subject to the Rent Stabilization Law at the time of the renewals. Moreover, even if compliance with the notice requirements was not considered necessary, the inclusion of a notice in the renewal leases that was not contained in the expiring lease was certainly permitted, indeed specifically authorized, by Administrative Code § 26-504 (c).

Free access — add to your briefcase to read the full text and ask questions with AI

Spaeda v. Bakirtjy, 186 Misc. 2d 557, 720 N.Y.S.2d 292, 2000 N.Y. Misc. LEXIS 544 (N.Y. Super. Ct. 2000).

186 Misc. 2d 557 (Spaeda v. Bakirtjy) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Matter of Jose R.
632 N.E.2d 1260 (New York Court of Appeals, 1994)
Campaign for Fiscal Equity, Inc. v. State
655 N.E.2d 661 (New York Court of Appeals, 1995)
Alonzo M. v. New York City Department of Probation
532 N.E.2d 1254 (New York Court of Appeals, 1988)
David v. New York City Conciliation & Appeals Board
450 N.E.2d 229 (New York Court of Appeals, 1983)
Century Operating Corp. v. Popolizio
458 N.E.2d 805 (New York Court of Appeals, 1983)
East Eleventh Street Associates v. Breslow
256 A.D.2d 110 (Appellate Division of the Supreme Court of New York, 1998)
Manocherian v. Williams
118 Misc. 2d 212 (Civil Court of the City of New York, 1983)
Giannattasio v. Cialini
165 Misc. 2d 249 (Civil Court of the City of New York, 1995)