Loft Building with Fewer Than Six Units Covered Under Rent Stabilization

May 31, 1998

LVT Number: 12363

Loft tenants claimed they were rent-stabilized. Landlord argued that since the building contained fewer than six units, it wasn't subject to rent stabilization. The Loft Board ruled for tenants, and landlord appealed. Landlord pointed out that the ETPA exempts buildings with fewer than six units from rent stabilization. The court and appeals court ruled against landlord. The Loft Law doesn't exempt interim multiple dwellings with fewer than six residential units from rent stabilization. The purpose of the Loft Law is to provide rent stabilization coverage for legalized residential lofts.

Loft tenants claimed they were rent-stabilized. Landlord argued that since the building contained fewer than six units, it wasn't subject to rent stabilization. The Loft Board ruled for tenants, and landlord appealed. Landlord pointed out that the ETPA exempts buildings with fewer than six units from rent stabilization. The court and appeals court ruled against landlord. The Loft Law doesn't exempt interim multiple dwellings with fewer than six residential units from rent stabilization. The purpose of the Loft Law is to provide rent stabilization coverage for legalized residential lofts. If the legislature intended to exclude buildings with fewer than six units, it would have done so by specific language in the statute. Landlord can't rely on ETPA provisions in this case.

91 Fifth Avenue Corp. v. The New York City Loft Board: NYLJ, p. 28, col. 3 (5/4/98) (App. Div. 1 Dept.; Milonas, JP, Rosenberger, Nardelli, Tom, Saxe, JJ)

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