Acceptance of ERAP Funds in Effect Extended Tenant's Lease Agreement

Landlord sued to evict tenant in November 2022 for nonpayment of rent in the amount of $40,265. Tenant asked the court to dismiss the case. She claimed that landlord couldn't maintain the eviction proceeding under RPAPL Section 711(2) because her last renewal lease expired in November 2020. Tenant hadn't made direct rent payment to landlord since March 2020 except for a court-ordered use and occupancy payment in March 2023. HRA began making rent payments for tenant in June 2022, and ERAP paid $18,302 in outstanding rent on tenant's behalf in December 2022. The court denied tenant's request to dismiss the case. In another housing court proceeding, the housing court had ruled in a similar case that acceptance of ERAP funds "created an agreement that is essentially a lease." In light of HRA and ERAP rent payments on tenant's behalf, tenant actively and intentionally took steps to ensure that the landlord-tenant relationship would continue after expiration of her last lease. ERAP funds were paid out two years after that lease expired. The parties' participation in the ERAP process showed their intent to reinstate the landlord-tenant relationship. The case was restored to the court's calendar.

1614 Midwood Holdings LLC v. Tiliaeva: Index No. LT-328061-22, 2023 NY Slip Op 23249 (Civ. Ct. Kings; 8/14/23; Golden, J)