Former Employee of Temporarily Exempt Unit Didn't Become Rent Stabilized

Tenant complained to the DHCR that landlord refused to offer him a rent-stabilized lease. Tenant had moved into the apartment in 1992 and never had a lease. His occupancy was conditioned on his employment with the landlord hospital. Landlord registered the apartment as temporarily exempt from rent stabilization. When tenant's employment terminated in April 2005, tenant remained in the apartment with landlord's consent and later claimed that he was entitled to a rent-stabilized lease. The DRA ruled for tenant.

Landlord appealed and won. An appeals court had ruled in another case that, under Rent Stabilization Code Section 2520.11(f), when a tenant's initial occupancy was contingent on tenant's affiliation with landlord, the cessation of such affiliation didn't automatically convert the apartment to rent-stabilized status. And in a prior, unrelated DHCR proceeding based on a court order, the DHCR ruled that landlord didn't have to offer a former employee a renewal lease and could take possession of that apartment. 

Maimonides Medical Center: DHCR Adm. Rev. Docket No. IV210009RO (1/21/21) [2-pg. doc.]