Building Illegally Converted Not Subject to Rent Stabilization

Landlord sued to evict tenant. Landlord said that tenant had no lease, was month-to-month, and wasn't subject to rent control or rent stabilization. Tenant claimed that he was rent stabilized because the building had six or more apartments, and asked the court to dismiss the case based on landlord's incorrect statement of the building's status. The court ruled against tenant. New York's highest court has ruled that the Emergency Tenant Protection Act (ETPA) doesn't apply to illegal units. So landlord's illegal conversion of tenant's building from a three-family residence to a 10-unit SRO building didn't make the building subject to the ETPA or rent stabilization. If it did, this would encourage more illegal conversions and go against zoning restrictions.

Arrow Linen Supply Co., Inc. v. Cardona: NYLJ, 7/3/07, p. 25, col. 3 (Civ. Ct. Kings; Kraus, J)