Tenant Rented from Holder of Unsold Shares

Facts: Landlord sued to evict tenant after tenant's lease expired and tenant rejected the terms of a renewal lease offered by landlord. Landlord was the holder of unsold shares of tenant's apartment and claimed that tenant wasn't subject to rent regulation because he'd moved in after the building was converted to a co-op. Court: Landlord loses. The definition in the cooperative conversion law of a ''nonpurchasing tenant'' under a noneviction plan isn't limited only to persons who moved into apartments before the building became subject to a co-op conversion. The law also includes persons who rent apartments from sponsors or holders of unsold shares in buildings already converted. The only exception is for persons who sublet from persons who purchased under the conversion plan. Under the court's interpretation of the law, tenant was a nonpurchasing tenant who was entitled to a rent-stabilized renewal lease and who couldn't be evicted without cause.

Paikoff v. Harris: NYLJ, p. 28, col. 1 (9/30/98) (Civ. Ct. Kings; Finkelstein, J)