Are Homeless Occupants in Scatter Site Program Rent-Stabilized Tenants?

June 26, 2020

LVT Number: #30856

Occupants, who were low-income, homeless families in danger of eviction, sued landlords, seeking a declaration that they were rent-stabilized tenants as well as leases in their own names. They claimed that landlords' tenant, We All Care, sublet apartments to them, and that this was an illusory tenancy scheme. Landlords claimed that the buildings were substantially rehabilitated in 2006 and therefore weren't subject to rent stabilization under any circumstances. Landlords rented to We All Care as part of a scattered site housing program operated under the auspices of the NYC Dept.

Occupants, who were low-income, homeless families in danger of eviction, sued landlords, seeking a declaration that they were rent-stabilized tenants as well as leases in their own names. They claimed that landlords' tenant, We All Care, sublet apartments to them, and that this was an illusory tenancy scheme. Landlords claimed that the buildings were substantially rehabilitated in 2006 and therefore weren't subject to rent stabilization under any circumstances. Landlords rented to We All Care as part of a scattered site housing program operated under the auspices of the NYC Dept. of Homeless Services. Occupants claimed that under HSTPA, they were now to be considered rent-stabilized tenants.

But the court said that HSTPA deems "subtenants" in certain circumstances to be rent-stabilized tenants. But "licensees" are still not entitled to leases under rent stabilization pursuant to HSTPA. A trial was needed to determine the facts. And landlord showed that the building had been substantially rehabilitated, but occupants raised questions of fact that also required a trial.

Delgado v. We All Care, Inc.: Index No. 5479/2016, 2020 NY Slip Op 31654(U)(Sup. Ct. Kings; 5/20/20; Sweeney, J)

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