Good Cause Eviction Law Creates New Cause of Action Combining Nonpayment and Holdover Grounds

Landlord sued to evict tenant after a 90-day nonrenewal notice expired, and claimed that it wasn't renewing the lease because tenant owed more than $30,000 in back rent. The case was commenced after the Good Cause Eviction Law (GCEL) took effect in April 2024.

The court granted tenant's request to dismiss the case, finding that, although tenant owed substantial arrears, nonpayment of rent can't serve as grounds for not renewing tenant's lease. The court said that, although the GCEL provided for nonpayment as a grounds for eviction, landlord had to commence a nonpayment proceeding rather than a holdover proceeding as it did here and the landlord would first have to offer tenant a renewal lease and could then serve a nonrenewal notice for failure to sign the renewal lease.

Landlord requested reconsideration, and the court modified its finding in a new decision. The court initially had reasoned that GCEL was ambiguous on whether a nonrenewal holdover was the appropriate proceeding for nonpayment of rent, and concluded that harmonizing GCEL with existing landlord-tenant laws necessitated bringing such cases as nonpayment proceedings. However, upon reconsideration, the court found that the plain language of RPL Sections 216(3) and 231-c clearly contemplated a nonrenewal holdover premised on nonpayment of rent, as these provisions referenced such proceedings and required nonrenewal notices to state nonpayment as a basis for nonrenewal. The court further reasoned that by allowing a nonrenewal holdover for nonpayment where the tenancy has expired, yet affording the tenant the right to cure under RPAPL Section 751(1), GCEL created a new cause of action blending elements of nonpayment and holdover proceedings.

The court ruled for landlord but stayed eviction while giving tenant a chance to cure her default.

1719 Gates LLC v. Torres: Index No. L&T 307806-24, 2024 NY Slip Op 24282 (Civ. Ct. Queens; 11/6/24; Schiff, J)