Apartment Rented to Nonprofit Wasn't Rent Stabilized

February 20, 2019

LVT Number: #29907

Tenant, a not-for-profit organization, and apartment occupant sued landlord, claiming that the rented apartment was subject to rent stabilization and that landlord unreasonably withheld consent when tenant asked to assign the apartment to occupant. The court ruled against tenant and occupant, who appealed and lost. The apartment wasn't rent stabilized. The apartment rent was more than $2,000 per month when tenant moved in, and landlord submitted proof of individual apartment improvements (IAIs) that supported the rent.

Tenant, a not-for-profit organization, and apartment occupant sued landlord, claiming that the rented apartment was subject to rent stabilization and that landlord unreasonably withheld consent when tenant asked to assign the apartment to occupant. The court ruled against tenant and occupant, who appealed and lost. The apartment wasn't rent stabilized. The apartment rent was more than $2,000 per month when tenant moved in, and landlord submitted proof of individual apartment improvements (IAIs) that supported the rent. Tenant had rented the apartment so that it could temporarily relocate the occupant while renovating a separate residence for her. The occupant never paid rent directly to landlord. This wasn't an illusory tenancy because tenant wasn't profiting from it and there was no violation of the rent laws. It also was reasonable for landlord to deny the assignment request due to occupant's inability to pay rent.

Ecumenical Community Development Organization, Inc. v. GVS Properties II, LLC: Index No. 156405/12, 2019 NY Slip Op 00360 (App. Div. 1 Dept.; 1/17/19; Renwick, JP, Manzanet-Daniels, Gische, Mazzarelli, Kahn, JJ)

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