Member of Landlord LLC Was Tenant, Not Owner-Occupant

September 30, 2010

LVT Number: #22901

Prior landlord, a limited liability company (LLC) rented an apartment to one of its non-managing members under a rent-stabilized lease effective March 1, 2003. Current landlord later sued to evict tenant, claiming that he was exempt from rent stabilization as an owner-occupant. The court ruled for tenant and dismissed the case. Landlord appealed and lost. By law, a member of an LLC has no interest in specific property owned by the LLC. So the apartment wasn't owner-occupied or exempt from rent stabilization when it was rented to tenant.

Prior landlord, a limited liability company (LLC) rented an apartment to one of its non-managing members under a rent-stabilized lease effective March 1, 2003. Current landlord later sued to evict tenant, claiming that he was exempt from rent stabilization as an owner-occupant. The court ruled for tenant and dismissed the case. Landlord appealed and lost. By law, a member of an LLC has no interest in specific property owned by the LLC. So the apartment wasn't owner-occupied or exempt from rent stabilization when it was rented to tenant.

Baxter Street Properties v. Lee: NYLJ, 9/8/10, p. 26, col. 1 (App. T. 1 Dept.; McKeon, PJ, Shulman, J)

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