Vacancy Lease for Tenant and New Co-Tenant Didn't Cause Vacancy Deregulation

Landlord sued to evict tenant, claiming that the apartment was unregulated. Tenant asked the court to dismiss the case and argued that she was rent stabilized. Tenant moved into the unit in 2013 under a rent-stabilized lease with a co-tenant. Later, when the co-tenant moved out and tenant asked to add a new co-tenant to the lease, landlord offered tenant and new co-tenant a lease with a lawful vacancy increase over the prior rent. This brought the legal rent above the vacancy deregulation threshold in effect at that time. So, landlord argued, the apartment had become deregulated. The court ruled for tenant and dismissed the case. The rent increase in and of itself didn't remove the apartment from rent stabilization. Since there was no hiatus in possession or actual physical vacancy of the apartment by the original tenant, vacancy deregulation couldn't apply.  

200 Haven Owner LLC v. Drachman: 73 Misc.3d 1207, 2021 NY Slip Op 50970(U), NYLJ No. 1634635057 (Civ. Ct. NY; 9/28/21; Ofshtein, J)