Building Owned by Church Covered

Facts: Landlord religious organization sued to evict four remaining tenants from an eight-apartment building. Landlord claimed it was exempt from rent stabilization. Tenants pointed out that they had each lived in the building for over 12 years and until 1993 had been given rent-stabilized leases by landlord. Landlord argued that the building was exempt because landlord operated it primarily for charitable and educational purposes. Landlord noted that it operated the building at a loss and provided a soup kitchen and educational classes there. Landlord also claimed it provided low-cost housing. None of the tenants were affiliated with landlord. Court: Landlord loses. The rent stabilization code exempts buildings operated exclusively for charitable purposes on a nonprofit basis. Courts have interpreted this to include nonprofit buildings operated primarily for charitable purposes. But landlord's charitable activities (i.e., the classes and soup kitchen) took place in less than 25 percent of the building's space and only on a periodic basis. Landlord didn't provide low-cost housing in any way that could be interpreted as a charitable activity---it merely rented rent-stabilized apartments for the legal rents. Landlord's financial status also had no bearing on whether it was exempt from stabilization. Also, tenants lived in the building before landlord began its charitable activities there, and landlord never obtained a not-for-profit certificate from the DOB identifying and permitting charitable activities.

Greater Mt. Pleasant Baptist Church v. Sandiford: NYLJ, p. 27, col. 6 (5/15/96) (Civ. Ct. Kings; Baynes, J)