Parking Space Isn't Required Service

Facts: Rent-stabilized tenant moved into landlord's building in 1980. In 1988, landlord became cooperative sponsor and the building was converted. Landlord remained the holder of unsold shares of tenant's apartment. In 1998, tenant rented a parking space from landlord for the first time. In 2005, the co-op corporation notified tenant that it wasn't renewing tenant's rental of the parking space. The co-op corporation had taken over operation of the parking spaces when it bought the building in 1988. Tenant complained to the DHCR of a reduction in services after the co-op locked tenant out of his parking space. The co-op argued that since tenant rented the parking space from landlord-sponsor, it was merely a parking subtenant and had no right to renew the parking space. The DRA ruled for tenant, finding that since tenant's parking space lease was with landlord-sponsor, it wasn't a sublease. Landlord appealed and lost. The DHCR found that it didn't matter whether tenant was lessee or sublessee to the parking space. Both the co-op and landlord were required to maintain this ancillary service to tenant. Landlord then filed an Article 78 petition, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled against landlord, and landlord appealed.

Court: Landlord wins. Since there were 74 apartments in the building and only 40 parking spaces, parking wasn't an ancillary building-wide service. Tenant subleased the space from landlord, who leased it from the co-op. And since rental of the parking space wasn't part of tenant's rent-stabilized lease, the co-op had the right to terminate the tenancy in the parking space.

110-15 71st Road Associates, LLC v. DHCR: NYLJ, 9/8/08, p. 32, col. 1 (App. Div. 2 Dept.; Skelos, JP, Miller, Carni, Chambers, JJ)