Unauthorized Subtenant Who Filed ERAP Application Gets Stay of Eviction Proceeding

Landlord sued to evict tenant for illegally subletting her apartment and profiteering by charging subtenants more than the legal rent. The subtenant had in fact filed a rent overcharge complaint against tenant with the DHCR. In April 2022, subtenant applied for ERAP relief in the amount of $1,750 per month for the months of March 2020 through April 2021. Subtenant stated that he requested that any awarded ERAP funds be paid to landlord. The court stayed the eviction proceeding when it received notice of the ERAP application. Landlord asked the court to vacate the ERAP stay on the grounds that the subtenant wasn't an "intended beneficiary" of the program because he had no obligation to pay rent to the landlord.

The court ruled against landlord. The ERAP law provides that to be eligible for funds, the applicant must be a "tenant or occupant obligated to pay rent." So the court ruled that the subtenant was entitled to the protections of the ERAP statute. OTDA guidelines also state that subtenants can apply for ERAP funds. And landlord didn't state that it wouldn't accept ERAP funds if issued for subtenant.

EQR-Hudson Crossing, LLC v. Magano: Index No. LT-300634-20, 2022 NY Slip Op 22178 (Civ. Ct. NY; 6/7/22; Bacdayan, J)