Landlord Didn't Disclose City's Building Ownership

Facts: The City of New York owned a building operated by the Department of Homeless Services (DHS) as an SRO facility for 174 homeless adults. The DHS set aside 53 of the units for mentally ill tenants. In 2004, the DHS contracted with landlord Volunteers of America to provide tenants with support services for independent living. The contract between the DHS and landlord set forth the amounts of rent to be paid, when rent would be collected, and that landlord was responsible for renewing a DHS-approved tenant lease form. The contract also said that landlord was responsible for evicting tenants who caused "serious infractions" against state and city housing laws and the lease. In 2005, landlord sued to evict month-to-month tenant, who had no lease. Tenant had lived in the building for 10 years. Landlord's court papers stated merely that the building was operated on a not-for-profit basis, was exempt from rent stabilization, and that tenant remained in possession after expiration of his lease as a month-to-month tenant. Landlord stated no grounds for eviction other than expiration of monthly tenancy, and didn't mention that the building was owned by the city or that landlord operated the building under the contract with the DHS. At some point, tenant's attorney discovered these facts and claimed that landlord's petition was defective. The court ruled against tenant and found that landlord could evict tenant. Tenant appealed.

Court: Tenant wins. Landlord was required to state in court papers the existence of its contract with the DHS. Otherwise, the city and tenant would be unaware that the city owned the building, that the DHS operated the building as an SRO, and that tenant had certain defenses to eviction available under the DHS contract. Under the contract, landlord was required to claim a cause for tenant's eviction other than mere expiration of a month-to-month tenancy.

Volunteers of America--Greater New York, Inc. v. Almonte: 2009 WL 2960614 (9/15/09) (App. Div. 2 Dept.; Santucci, JP, Covello, Leventhal, Belen, JJ)