Landlord's Petition Didn't Give Tenant Notice of Regulations

Landlord sued to evict tenant for nonpayment of rent. Landlord stated in its court petition that tenant wasn't subject to rent control or rent stabilization because the premises was operated by a nonprofit institution and occupied by a tenant whose occupancy was contingent on an affiliation with the institution. Tenant asked the court to dismiss the case. He claimed landlord's court papers were defective because they didn't sufficiently inform him of the laws and regulations governing his tenancy, which may have given him additional rights. Landlord then asked the court for permission to amend its petition. 

The court ruled against landlord and dismissed the case.  Landlord wanted to add to its petition a provision that the premises was a Congregate Care Level 2 facility regulated under federal regulation 24 CFR 891. Tenant was a person with mental challenges and the premises was part of a facility operated under regulatory agreements with HUD and the Office of Mental Health. It was designed especially for occupants like tenant. The court pointed out that landlord's original petition failed to disclose this information, and the proposed amended petition also failed to indicate what rules governed the setting of rent in the facility. The court found a clear showing of actual prejudice to tenant.

Bridge 202 Apts. v. Hermo: Index No. 72147/19, NYLJ No. 163947540 (Civ. Ct. NY; 10/5/21; Schneider, J)