Landlord Can't Collect Rent While Performing Illegal Alterations

Landlord sued to evict rent-stabilized SRO tenant for nonpayment of rent. Tenant claimed breach of the warranty of habitability. After trial, the court dismissed the case. The court found that tenant owed 10 months’ back rent totaling $2,616. Landlord had removed four community bathrooms from the third floor of the building. Landlord was remodeling the building and converting SRO units into apartments without proper permits. HPD had issued three “B” violations to landlord, all directing landlord to replace the at least one bathroom on the third floor. Landlord’s actions went beyond breach of the warranty of habitability. Landlord could not collect rent from tenant until obtaining DHCR approval and/or an HPD Certification of No Harassment for the ongoing illegal construction work at the building. It was also unclear what the legal rent was because the rent could be reduced by the DHCR based on modification of required services. 

354 West 56th Street Inc. v. Aguillar: 2015 NY Slip Op 25210, 2015 WL 3993599 (Civ. Ct. NY; 6/24/15; Kraus, J)