Residency Agreement for Occupant in Rehab Program Wasn't a Lease

Tenant, a community service provider, sued to evict occupant it claimed was a subtenant, for nonpayment of rent. After trial, the court ruled against tenant. The apartment occupant was a licensee, not a tenant, and didn't owe rent. The Residency Agreement between the parties stated that tenant would provide residential and community-based services to assist individuals to obtain their highest level of independent functioning through collaboration. The agreement also provided that occupant had a right to receive rehabilitation services from tenant, that occupant agreed to fully participate in rehabilitative services, and that occupant would pay a monthly residency fee. The court found that the Residency Agreement wasn't a lease or rental agreement and that payments due weren't rent. Instead, monthly payments were for a package of services. The agreement didn't designate a specific unit for occupancy, and occupancy was so intertwined with the other parts of the agreement that it couldn't be treated separately. 

Services for the Underserved v. Alvarado: 59 Misc.3d 1205(A), 2018 NY Slip Op 50378(U) (Civ. Ct. NY; 3/16/18; Marton, J)