Unit in Building that Landlord Bought from City

Facts: Rent-controlled tenant moved into building in 1969. In 1983 the City of New York acquired the building and tenant became exempt from rent control. The city sold the building to landlord in 1986. Landlord claimed that tenant then became subject to rent stabilization. Landlord later sued tenant for nonpayment of rent. Tenant claimed she was again rent-controlled and that landlord willfully overcharged her. Landlord argued that under Rent Stabilization Law section 26-507, formerly rent-controlled apartments become rent-stabilized when sold by the city to private owners. Court: Landlord loses. The Rent Stabilization Law states that all previously rent-stabilized apartments that become deregulated by city ownership resume rent-stabilized status when sold back to private owners. That law says nothing about what happens to formerly rent-controlled apartments. The Rent Control Law says that formerly rent-controlled apartments that became exempt when the city took over a building became rent-controlled again upon sale to a private owner. However, the court found that the overcharge wasn't willful.

President Park, Inc. v. Brabham: NYLJ, p. 29, col. 5 (12/13/95) (Civ. Ct. Kings; Callender, J)