Transitional Housing for Homeless Families Not Subject to Rent Stabilization

Apartment occupant complained to the DHCR of a reduction in required services. Landlord claimed that repairs had been made but also that the apartment wasn't subject to rent stabilization. The DRA ruled for tenant and reduced her rent. Landlord appealed and won. Landlord again argued that NYC's Department of Homeless Services (DHS) used the apartment for a temporary homelss shelter for homeless families. Landlord pointed out that in other DHCR and court cases where a not-for-profit organization signed a transitional Cluster Lease Agreement with building landlords in order to provide occupancy to homeless families for transitional housing, owners claimed that the units weren't rent stabilized. And, in a recent State Supreme Court decision, Clark Wilson, Inc. v. DHCR, the court ruled that occupants weren't tenants under rent stabilization. They were never named on leases and were never parties to a rental agreement obligating them to pay rent for use or occupancy of their apartments. 

Wilson Han Assoc., Inc.: DHCR Adm. Rev. Docket No. FP210043RO (11/16/18) [3-pg. doc.]