Possible Illegal Units Don't Require Dismissal of Tenants' Action for 7-A Administrator

February 14, 2022

LVT Number: #31829

Tenants sought appointment of a court-appointed 7-A administrator for a building containing 22 apartments, although the building's Certificate of Occupancy listed only 16 units. HPD asked the court to dismiss the case because there were possibly six "illegal" units in the building. HPD argued that there was documentary proof of illegal units, and therefore it was legally impossible for the court to issue an order that complied with RPAPL Section 778(1). The court disagreed and denied HPD's motion to dismiss.

Tenants sought appointment of a court-appointed 7-A administrator for a building containing 22 apartments, although the building's Certificate of Occupancy listed only 16 units. HPD asked the court to dismiss the case because there were possibly six "illegal" units in the building. HPD argued that there was documentary proof of illegal units, and therefore it was legally impossible for the court to issue an order that complied with RPAPL Section 778(1). The court disagreed and denied HPD's motion to dismiss. The court found that a 7-A administrator acts subject to the court's direction, including on the issue of collecting rent and commencing eviction proceedings for the removal of any tenant. 

Matter of Bordeau: 2021 NY Slip Op 21366, NYLJ No. 1641579187 (Civ. Ct. Kings; 12/3/21; Poley, J)

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