No Proof of Illusory Tenancy

Subtenant complained of illusory tenancy and complained to the DHCR that landlord should give her a renewal lease. She claimed that there was a scheme between landlord and tenant to rent the apartment to her and profit at her expense. Landlord claimed that there was no illusory tenancy but that rent-stabilized tenant illegally sublet his apartment. The DRA ruled against subtenant. Subtenant appealed, arguing that landlord brought an eviction proceeding and obviously was cooperating with tenant in court. The DHCR ruled against subtenant. Subtenant didn't raise the issue of the court case before the DRA. Even if she did, it made sense for landlord to bring an eviction proceeding if landlord claimed that tenant was illegally subletting the apartment. Landlord couldn't evict subtenant unless tenant was giving up the apartment. There was no proof that landlord profited in any way from the illegal subtenancy.

Schweiger: DHCR Adm. Rev. Docket No. VH410010RK (12/11/07) [3-pg. doc.]