Landlord Can't Collect Rent from Illegal Loft Tenants

Landlord sued to eject illegal loft tenants in 2008 and sought payment of rent or "use and occupancy." The court ruled against landlord, who appealed and lost. Landlord owned several commercial loft buildings on West 28th Street. Tenants began living in the lofts in the 1970s. In 1984, landlord's attempt to register one building with the Loft Board was rejected. Landlord didn't seek to legalize the other buildings until 2004. In 2008, tenants filed rent overcharge complaints with the Loft Board. Landlord then started its court action. Landlord argued that Loft Law provisions barring collection of rent or use and occupancy until a building complied with the Loft Law were unfair. But landlord didn't take steps to obtain a Certificate of Occupancy for the residential lofts. Landlord also had a duty to register the buildings as interim multiple dwellings, even if it didn't know about the residential use. And building violations issued for the residential use put landlord on notice of the illegal use before the Loft Law took effect in 1982.

Jo-Fra Properties Inc. v. Bobbe: Index No. 114288/08, NYLJ No. 1202476510775 (App. Div. 1 Dept.; 12/16/10; Andrias, JP, Saxe, Friedman, Nardelli, Acosta, JJ)