Non-Purchasing Tenant Can't Be Evicted After Co-op Conversion

Facts: Tenant moved into a rent-stabilized apartment in 1987. In 1990, the building landlord began a cooperative conversion. In 1991, tenant moved out of his apartment and into another vacant apartment in the building. Under the co-op offering plan, tenant signed an interim lease for the new apartment and agreed to buy it. Tenant later defaulted under the purchase agreement. Landlord later sued to evict tenant for not buying the co-op shares to the apartment. Tenant claimed he was subject to rent stabilization as a non-purchasing tenant under a noneviction plan. Landlord claimed that tenant gave up his rent stabilization status when he moved into the new apartment under the interim lease. Court: Tenant wins in part. The offering plan specifically allowed tenants to remain in the apartment based on the sponsor's promise not to evict non-purchasing tenants at the end of the lease. There was no exception for tenants who moved into vacant apartments. Under the language of the offering plan, tenant was a nonpurchasing original tenant of a vacant apartment who ''may not be evicted for failure to purchase.'' But the court refused to rule that tenants were covered under rent stabilization. The offering plan and interim lease specifically stated that the apartment was not rent stabilized.

Libani v. Concorde & Cie, LP: NYLJ, p. 28, col. 6 (10/28/98) (Sup. Ct. NY; Schlesinger, J)