Rent-Stabilized Tenancy Didn't Become Month-to-Month When Lease Not Renewed

Landlord sued to evict rent-stabilized tenant based on tenant's failure to execute a renewal lease. Tenant counterclaimed for rent overcharge, and asked the court to dismiss landlord's claim. The court ruled against tenant, and the parties then agreed that the sole issue for the court to decide was whether DSS payments made to landlord after the expiration of tenant's last renewal lease created a month-to-month tenancy that entitled tenant to the rights and benefits provided under Real Property Law Section 232-a. Under that provision, a month-to-month tenancy can't be terminated without service of a 30-day termination notice. Landlord and tenant otherwise waived their right to a trial.

The court then ruled for landlord, finding that a month-to-month tenancy had not been created here. A final judgment awarding possession to landlord was issued in April 2019.

Tenant appealed and lost. A month-to-month tenancy wasn't created. Tenant did retain her rights to the rent-stabilized apartment so long as she continued in possession. A rent-stabilized tenancy can't be monthly because the respective rights and responsibilities of a landlord and tenant under a month-to-month tenancy can't be reconciled with the parties' respective rights and responsibilities under rent stabilization. Tenant also argued incorrectly on appeal that the lower court's order precluded her from further litigating her overcharge claim. 

Fairfield Beach 9th, LLC v. Shepard-Neely: Index No. 2019-965 QC, 2021 NY Slip Op 21339 (App. T. 2 Dept.; 12/10/21; Weston, JP, Elliot, Toussaint, JJ)