Landlord That Won't Accept ERAP Gets Automatic Stay Lifted in Holdover Proceeding

Landlord sued to evict unregulated tenant when tenant's lease ended, after serving a 60-day termination notice. The court stayed the proceeding upon learning that tenant had filed an ERAP application, and placed the case on its ERAP Administrative Calendar pending the outcome of tenant's application. Landlord asked the court to vacate the ERAP stay because it had submitted a sworn statement that it wouldn't accept ERAP money on tenant's behalf.

The court ruled for landlord. Landlord was permitted to reject ERAP payment under the law, and there was no showing at this point that landlord was not acting in good faith. If landlord did accept ERAP money, it must agree to a 12-month tenancy/occupancy or forgo the payment of arrears that ERAP would otherwise have paid. Although tenant planned to raise a defense that he was subject to rent stabilization, tenant hadn't proved to date that his tenancy must continue after his lease ended. The case was put back on the court calendar.  The court noted that it did have the discretion to order a stay of any eviction that may be ordered at some future point in the case.  

178 Broadway Realty Corp. v. Charles: Index No. L&T309793/21, 2022 NY Slip Op 22164 (Civ. Ct. Kings; 5/23/22; Slade, J)