Tenant Didn't Become Deregulated When His Corporate Entity Changed

February 13, 2018

LVT Number: #28191

Landlord sued to evict deregulated tenant. Landlord claimed that the apartment became vacant after the building's 421-a tax benefits expired and that, therefore, the apartment wasn't subject to rent stabilization. The court ruled against landlord, finding that the apartment was rent stabilized. Landlord appealed and lost. The apartment didn't become vacant. Tenant, a corporate entity, was substituted in for a prior corporate tenant on a renewal lease that started on March 1, 2014. The apartment had been and remained continuously occupied by Harold Unger for 30 years.

Landlord sued to evict deregulated tenant. Landlord claimed that the apartment became vacant after the building's 421-a tax benefits expired and that, therefore, the apartment wasn't subject to rent stabilization. The court ruled against landlord, finding that the apartment was rent stabilized. Landlord appealed and lost. The apartment didn't become vacant. Tenant, a corporate entity, was substituted in for a prior corporate tenant on a renewal lease that started on March 1, 2014. The apartment had been and remained continuously occupied by Harold Unger for 30 years. Unger, along with the prior corporate entity, was named on leases and in annual rent registrations since 2008. Landlord also accepted personal rent checks from Unger after Unger's corporate entity changed. Since Unger continuously occupied the apartment, the apartment didn't become vacant and therefore wasn't deregulated.

Gavrielov v. Unger Consulting Group Ltd: 2018 NY Slip Op 50106(U), 2018 WL 577741 (App. T. 1 Dept.; 1/29/18; Shulman, PJ, Ling-Cohan, Gonzalez, JJ)

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