New Landlord Bound by Loft Board's Harassment Order

In 2006, the NYC Loft Board issued an Harassment Order, finding that the building's former landlord harassed tenants on various floors, by failing to maintain amenities and conduct repairs. The Loft Board found that this was an effort by former landlord to compel those tenants to vacate their apartments and/or waive their Interim Multiple Dwelling rights. The Harassment Order further barred landlord from requesting its termination for at least three years.

In 2007, new landlord bought the building and began repairs to cure the defects found in the Harassment Order. In 2007, new landlord also bought the rights and fixtures from certain tenants. New landlord later filed an application for termination of the Harassment Order. In 2013, the Loft Board granted that application. In 2018, landlord filed an application to remove the building from Loft Board jurisdiction, and in 2020 the Loft Board directed landlord to register the apartments as rent stabilized with the DHCR. Landlord asked the Loft Board to reconsider. In 2023, landlord commenced an Article 78 court proceeding seeking annulment of the Loft Board's 2020 and 2022 orders. 

The court ruled against landlord. The death of the seventh-floor tenant deregulated that unit. But the Loft Board acted neither arbitrarily nor capriciously when it issued its orders finding that the Harassment Order bound new landlord, whether or not the city filed notice. Plus, landlord had constructive notice of the Harassment Order. Landlord also had actual notice of the Harassment Order. And the filing of the Harassment Order was not a condition precedent to enforcement of the Loft Law regulations.

Triad Capital, LLC v. Patino: Index No. 153186/2023, 2023 NY Slip Op 32589(U)(Sup. Ct. NY; 7/26/23; Engoron, J)