Building Previously Subject to HUD Mortgage Is Covered

May 31, 2000

LVT Number: 14176

Landlord sued to evict eight tenants in a building previously subject to a HUD mortgage. Landlord claimed that the building was exempt from rent regulation. Tenants argued that they were rent stabilized. The court ruled for tenants. Since HUD was no longer involved with the building, there were no grounds for exemption from rent stabilization. The building had 15 apartments on the rent stabilization base date, and the rent stabilization code stated that former HUD buildings, such as this one, were subject to regulation.

Landlord sued to evict eight tenants in a building previously subject to a HUD mortgage. Landlord claimed that the building was exempt from rent regulation. Tenants argued that they were rent stabilized. The court ruled for tenants. Since HUD was no longer involved with the building, there were no grounds for exemption from rent stabilization. The building had 15 apartments on the rent stabilization base date, and the rent stabilization code stated that former HUD buildings, such as this one, were subject to regulation.

233 Chelsea Assocs. LLC v. Dobler: NYLJ, 5/24/00, p. 28, col. 1 (Civ. Ct. NY; Milin, J)

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