Tenant in Co-op No Longer Stabilized Three Years After Eviction Plan

Tenant complained that landlord had illegally deregulated her rent-stabilized apartment. The DHCR ruled for tenant and found that under the co-op building’s eviction plan, non-purchasing tenant was subject to rent stabilization until either she moved out or government regulation of the building ended. Landlord then filed an Article 78 appeal, and the DHCR took the case back for reconsideration. The DHCR then ruled for landlord. Landlord, a housing development fund corporation (HDFC), acquired the property from the city in 1995 and converted to a co-op under an approved eviction plan. Under the eviction plan, tenant was no longer protected by rent stabilization after three years. Also, since the building is subject to Article XI of the Public Housing Finance Law, it's exempt by law from rent stabilization. And although landlord continued to offer tenant rent-stabilized leases for 17 years after the co-op conversion, this didn’t confer rent-stabilized status on tenant. 

850 Southern Blvd., HDFC: DHCR Adm. Rev. Docket No. DM610002RP (4/13/15) [7-pg. doc.]