Change in Number of Units Without C of O Means Landlord Can't Collect Rent

Landlord sued to evict tenant for nonpayment of rent. Tenant claimed that no rent was owed under Multiple Dwelling Law (MDL) Section 302. The court ruled for tenant and dismissed the case. Landlord appealed and lost. The building had been constructed in 1901 as an old-law tenement. In 2003, prior landlord altered the building by subdividing two apartments into four units. This increased the number of apartments in the building from 10 to 12. DOB issued a violation in 2018 for altering the building without obtaining a valid certificate of occupancy (C of O). The substantial alterations required the building to have a C of O. And if a dwelling or structure is occupied in whole or in part in violation of MDL Section 301, no rent can be recovered by the landlord, and no eviction proceeding can be maintained for possession based on nonpayment of rent. This was true even if tenant's apartment wasn't one of the newly created units.

West 47th Holdings LLC v. Eliyahu: 64 Misc.3d 133(A), 2019 NY Slip Op 51066(U) (App. T. 1 Dept.; 6/26/19; Ling-Cohan, JP, Gonzalez, Cooper, JJ)