Illegal Basement Apartment Was Subject to Rent Stabilization

Landlord sued to evict licensee occupants from basement apartment after tenant moved out. Landlord claimed that the apartment was unregulated. Occupants claimed that the apartment was rent stabilized. The court found that the apartment was rent stabilized and dismissed the case without prejudice to occupants’ claims that they were either co-tenants or successors to tenant and entitled to possession. The building was constructed before Jan. 1, 1974, and contained six apartments, including occupants’ illegal basement apartment. Therefore, the building was subject to rent stabilization and the case must be dismissed because landlord’s court papers didn’t state that the apartment was rent stabilized. It didn’t matter that HPD had issued a vacate order for the illegal apartment. 

Maldonado v. Grizales: Index No. L&T 59768/16, NYLJ No. 1202769057743 (Civ. Ct. Queens; 9/14/16; Kullas, J)