Are Tenants of Illegally Converted Nonprofit Housing Rent Stabilized?

Subtenants sued landlord, and asked the court to bar any eviction proceeding while the court considered whether they were rent-stabilized tenants. Landlord had rented the eight-apartment building to a nonprofit organization to provide housing to the homeless. The tenant, in turn, divided the building into 50 illegal SRO units and rented one to subtenants in 2006. Tenant later was evicted for nonpayment, and landlord took over operation of the illegal housing. Landlord pointed out that HPD had issued a vacate order, so it should be allowed to proceed with an eviction action. The court ruled against landlord. Landlord consented to and benefited from the illegal conversion of the building. So subtenants would probably succeed on their claim and would suffer irreparable harm if evicted before the case was decided.

Carpenter v. Sirju-Kar Corp.: NYLJ, 3/19/10, p. 28, col. 1 (Sup. Ct. Kings; Velasquez, J)