Building Covered After Federal Regulation Ended

May 31, 2001

LVT Number: 15041

Landlord sued to evict tenants after it paid off a federal mortgage and tenants' HUD leases ended. Landlord claimed that tenants were now unregulated. Tenants claimed that they were rent stabilized. The court ruled for tenants. Landlord appealed and lost. The apartments were in a building substantially rehabilitated in 1967 with federal funds, on the condition that landlord participate in a low-income housing program. The Rent Stabilization Code clearly covers these apartments at the end of the HUD coverage.

Landlord sued to evict tenants after it paid off a federal mortgage and tenants' HUD leases ended. Landlord claimed that tenants were now unregulated. Tenants claimed that they were rent stabilized. The court ruled for tenants. Landlord appealed and lost. The apartments were in a building substantially rehabilitated in 1967 with federal funds, on the condition that landlord participate in a low-income housing program. The Rent Stabilization Code clearly covers these apartments at the end of the HUD coverage.

223 Chelsea Assocs. LLC v. Dobler: NYLJ, 5/18/01, p. 18, col. 2 (App. T.1 Dept.; Parness, PJ, Davis, Suarez, JJ)

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