Nonpayment Petition Dismissed for Lack of Building Registration

Facts: Landlord gave tenant not-for-profit organization a commercial net lease for the entire building in 1991. The lease stated that the building was to be used as a group home for teenagers. Instead, tenant rented apartments to formerly homeless subtenants at low monthly rents. In 1993 tenant didn't pay rent for several months. Landlord sued to evict tenant in a commercial nonpayment proceeding. Tenant paid part of the back rent and consented to a final judgment for possession. The judgment was entered against tenant only. Subtenants then asked the court to dismiss the case. They claimed that landlord's petition misstated the status of the building as exempt from rent stabilization. Subtenants said that the building was a multiple dwelling with 12 units and that they were covered under rent stabilization. So, landlord should have registered the building with HPD. Landlord argued that no registration was required; it had no legal relationship with subtenants and they had no claim once the case against tenant was decided in landlord's favor.

2009-2011 Third Avenue Corp. v. Fifth Avenue Community Center of Harlem, Inc.: NYLJ, p. 26, col. 3 (3/1/95) (Civ. Ct. NY; Evans, J)