Units Were Residentially Occupied

Facts: The New York City Loft Board ruled that landlord's building was an interim multiple dwelling (IMD) covered under Article 7-C of the Multiple Dwelling Law (MDL), and landlord appealed. Landlord claimed that three units weren't covered based on exemptions set forth in the Loft Board's coverage regulations. The regulations exempted units designated either as joint living/work quarters or as commercial use with accessory residential use on a final certificate of occupancy (C of O) issued before June 21, 1982. The Loft Board ruled that the units weren't exempt under its regulations because a C of O hadn't been issued pursuant to MDL Section 301. Landlord argued in its appeal that this type of C of O wasn't necessary for the exemption. Court: Landlord loses. The fact that units had been occupied under a different type of C of O in either of the two categories of occupancy prior to June 21, 1982, was insufficient to warrant their exemption from Loft Law coverage. The Loft Board had sufficient proof that tenants residentially occupied the building during the window period to rule that they were covered by the Loft Law.

[Matter of Andy Warhol Enterprises: NYLJ, p. 23, col. 6 (12/23/92) (Sup. Ct. N.Y.; Parness, J)].