Tenant Protected Despite Co-op Conversion

Facts: Tenant's building was converted to cooperative ownership under an HPD housing program in 1989. The building became an HDFC co-op operated for charitable purposes on a not-for-profit basis. Rent-controlled tenant didn't buy his apartment. In 1994, landlord sued to evict tenant, claiming that tenant refused to sign a lease and agree to a rent increase, unreasonably denied access for repairs, refused to pay money owed under a DHCR order, consistently failed to pay rent on time, and used the apartment as a business office in violation of the C of O. Landlord claimed that tenant was exempt from rent control. Court: Landlord loses. Landlord claimed tenant was exempt from rent control, not because the building was a co-op, but because the building was operated exclusively for charitable purposes. The offering plan stated that nonpurchasing tenants were restored to rent-controlled status, and if at least 35 percent of rent-controlled tenants bought their apartments, the others could be evicted two years after the co-op conversion was completed. Here, there was no compliance with the offering plan provision in seeking to evict tenant. And landlord's termination notice didn't state sufficient facts in spite of the many grounds for eviction stated.

1001 Progressive HDFC v. Marshall: NYLJ, p. 33, col. 6 (6/21/95) (Civ. Ct. Kings; Gould, J)