Nonprofit Tenant Using Apartment to House Program Participants Was Rent Stabilized

Tenant was a nonprofit provider of "scatter-site" housing under a master lease with building owner to sublet apartments to eligible participants in its program to house ex-homeless persons with a substance abuse history. Tenant sued to evict apartment occupant, who was a program participant, due to objectionable conduct and house rule violations. While tenant later admitted that the apartment was subject to rent stabilization, it didn't state in its court papers that the apartment was rent stabilized. Tenant claimed that occupant wasn't rent stabilized because tenant didn't primarily reside in the apartment. Occupant claimed that he was a rent-stabilized tenant and asked the court to dismiss the case.

The court ruled for occupant and dismissed the case because tenant failed to accurately describe the premises. The apartment was rent stabilized because, as a corporate tenant, tenant had the same rights as an individual rent-stabilized tenant. The lease contemplated occupancy of the premises by eligible participants in its program, and occupant was listed on a lease rider. The court didn't decide whether occupant was a rent-stabilized tenant.

Project Renewal, Inc. v. Jones: Index No. 64770/2016, NYLJ No. 1202787005440 (Civ. Ct. Bronx; 5/10/17; Lach, J)