Shareholder's Daughter Gets Former Mitchell-Lama Apartment

Landlord cooperative corporation, a former Mitchell-Lama co-op, that went free market in 2015, filed an Article 78 appeal of the DHCR's decision that former shareholder tenant's daughter had succession rights to tenant's apartment. Shareholder tenants, husband and wife, signed a Mitchell-Lama proprietary lease in 2004. Tenants' daughter claimed that she had lived in the apartment continually with tenants since 2004. Tenant's daughter applied for succession rights in 2014 after both tenants had moved out. Landlord denied the application, claiming that the daughter hadn't lived with tenant for the required two-year period.

The daughter appealed to the DHCR in 2014, and the DHCR ruled for the daughter in May 2019. The DHCR found that the daughter qualified for succession to a state-aided housing project subject to the Private Housing Finance Law (PHFL) because (a) she was tenant's family member; (b) she and tenant jointly occupied the apartment as their primary residence during the one-year period before tenant died; and (c) although tenant hadn't filed annual income affidavits listing the daughter as an occupant since 2009, there was other proof of occupancy such as bank statements, income tax returns, and medical records.

In its appeal, landlord claimed that, although tenant father had died, there was no proof of when tenant mother actually moved out. The court ruled against landlord. The DHCR's decision was reasonably based on evidence in the record that tenant's daughter had been a long-time permanent resident.  And it was undisputed that tenant's daughter was disabled and only had to prove she lived in the apartment with tenant for one year before tenant moved out.

Southbridge Towers, Inc. v. DHCR: Index No. 159398/19, 2020 NY Slip Op 31025(U)(Sup. Ct. NY; 4/20/20; Edmead, J)