Market-Rent Tenants Can't Be Evicted During Condo Conversion

LVT Number: 19478

Facts: Landlord filed a noneviction condominium conversion plan, which was approved by the state attorney general a year later, in June 2006. While the proposed plan was pending, landlord started eviction proceedings against 23 unregulated tenants whose leases expired during that period. Tenants asked the court to dismiss the eviction cases. They claimed that the Martin Act, governing condo and co-op conversions, barred landlord from evicting tenants in occupancy on the date the conversion plan was approved. Court: Tenants win.

Facts: Landlord filed a noneviction condominium conversion plan, which was approved by the state attorney general a year later, in June 2006. While the proposed plan was pending, landlord started eviction proceedings against 23 unregulated tenants whose leases expired during that period. Tenants asked the court to dismiss the eviction cases. They claimed that the Martin Act, governing condo and co-op conversions, barred landlord from evicting tenants in occupancy on the date the conversion plan was approved. Court: Tenants win. One of the purposes of the Martin Act is to protect tenants from being forced to move out or to buy their apartments when they can't or don't want to buy. A noneviction plan requires approval of 15 percent of apartments in the building. A noneviction plan also bars eviction of tenants in occupancy, except for nonpayment or other lease breach, at any time once 15 percent of the apartments have signed on to the conversion plan. And it gives tenants in occupancy the right to buy their apartments at the price outlined in the plan. The Martin Act also requires that unregulated tenants in buildings converting to condo status be given renewal leases with reasonable rent increases.

322 West 57th Owner LLC v. Penhurst Productions, Inc.: NYLJ, 3/27/07, p. 22, col. 1 (Civ. Ct. NY; Cohen, J)

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