De Facto Rent Stabilization

On January 8, 2016, in Landlord-Tenant, by Robbie L. Vaughn, Esq.

iStock_000038610748_MediumJones v. Gumbs, 84034/2015

Four family building with seven residential units

Landlord filed a holdover proceeding to evict tenant whose lease had expired. Tenant claimed the building was a legal four family home, but contained seven residential units which made the building rent stabilized. The landlord claimed that the building currently contained less than six residential units and could not be considered rent stabilized.

The court relied on legal precedent and a DOB violation when it ruled that the building contained six or more units and was therefore rent stabilized. The Court stated that the units did not need to be legal in order to subject the premises to rent stabilization.

Furthermore, and this may be the worst part, the Court stated that even if one or two units were now removed, the building would still be subject to rent stabilization because it contained more than six units when the DOB violation was issued. Thus, the Court found that the tenant should have been offered a rent stabilized lease and ultimately dismissed the landlord’s eviction action.

If you are in a similar situation and need legal assistance, do not hesitate to call the Law Firm of Vaughn, Weber & Prakope, PLLC at (516) 858-2620.

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