Assessments Considered Rent in Nonpayment Proceeding Against Shareholder-Tenant

Landlord sued to evict Michell-Lama co-op shareholder-tenant in a building supervised by HPD, for nonpayment of monthly maintenance fees totalling over $30,000 as well as overdue monthly assessments. Tenant, represented by counsel, asked the court to dismiss the case. Tenant claimed that landlord's rent demand was defective because 7 percent of the "rent" demanded consisted of monthly assessments rather than monthly maintenance. Tenant argued that the assessments weren't rent. The court disagreed. Unlike Mitchell-Lama surcharges used to compel compliance with annual income reporting requirements, which can't be sought as rent in a nonpayment proceeding, assessments function as a means of funding the operation and maintenance of a building and have been held to constitute rent for purposes of RPAPL Section 711(2). 

Cedar Manor Mut. Hous. Corp. v. Taylor: Index No. L&T 307135/24, 2025 NY Slip Op 50009(U)(Civ. Ct. Queens; 1/10/25; Schiff, J)