Building's Sixth Unit, Claimed Commercial, Was Used for Residential Purposes

Prior landlord sued to evict tenant. Landlord claimed that tenant's apartment wasn't rent regulated because the building contained fewer than six residential units. At trial, landlord claimed that the building contained five apartments and a commercial storage unit on the ground floor, rear of the building. Tenant claimed that the commercial unit had been used as a residential dwelling by at least two different tenants. The trial court ruled for tenant and dismissed the case, finding that the building contained six residential units and therefore was rent stabilized.

Landlord appealed and lost. Tenant and tenant's witness testified that they had been inside the sixth unit and had observed that it was set up as a dwelling unit with a kitchen, bathroom, and bed. They submitted photographs documenting this. Tenant also presented proof that, in a prior nonpayment proceeding by prior landlord against a tenant of the ground floor, rear unit, landlord described that rear apartment as rented "for residential purposes." Once a building is altered by landlord or with landlord's knowledge to contain six or more units, all units in the building are brought under rent stabilization. And rent stabilization continues even if the building is later reduced to fewer than six units.

Beverly Holding NY, LLC v. Blackwood: 63 Misc.3d 160(A), 2019 NY Slip Op 50877(U) (App. T. 2 Dept.; 5/31/19; Pesce, PJ, Aliotta, Elliot, JJ)