Tenants Subject to Rent Stabilization

Landlord sued to evict three separate building tenants, claiming that tenants had illegally converted commercial space to residences. Tenants claimed that they were rent stabilized. The court combined the cases and ruled for landlord. Tenants appealed and won. Landlord then appealed and lost. Tenants presented proof that landlord consented to the unlawful conversion of the units, paid for by tenants, and that the building otherwise could be legalized for residential use under applicable zoning laws. Landlord had even taken steps to legalize the conversion while tenants were doing the work. So tenants were entitled to rent-stabilized renewal leases.

315 Berry Street Corporation v. Huang: NYLJ, 6/15/10, p. 38, col. 5 (App. Div. 2 Dept.; Covello, JP, Santucci, Angiolillo, Dickerson, JJ)